Hollowing-out or international division of labour? Perspective from the consumer electronics industry and Singapore

A study was conducted to ascertain whether technology transfer from more developed to less developed countries by multinational companies necessarily constitutes the hollowing-out of technological capability in the home countries. The consumer electronics industry as seen from the perspective of Singapore is reviewed, and ten projects of new product development from seven multinational companies with subsidiaries located in Singapore are analyzed for their job content and division of labour. The study shows that Singapore is now a hub for technology transfer activities in Asia. It also shows that there is a division of labour amongst an increasing number of countries rather than a hollowing-out of technological capability in Singapore or the home countries of the multinational companies.