ABSTRACT

Analysis of a domestic auto industry opens a window on the broader structure of industry at home. A current profile of change in the sector draws attention to major global assemblers in regional networks, and a new division of labor in the flow of parts across borders. I begin with local sectors in each country that might promote or discourage knowledge exchange. I then track Nikkei networks in each country to assess precedent and prospect for knowledge networks. South Korea, China, and Thailand have strong sectors and deep ties to global value chains in auto production, but with widely discrepant anchors in the value chains of Japanese autos. Can the target nations now secure innovation?