Offshore development of electronic products

The existence of a local electronics industry is widely considered in both the developed and developing nations to be an essential contributor to prosperity and growth. This is not only on account of the scale of the world market for electronics products, but also because of the radical effect that the application of electronics goods and services has on the competitiveness of other sectors of the economy. This article considers how electronics product development activities are being established in the offshore sites of major multinationals. It begins with a synopsis of how countries attract foreign direct investment and the associated benefits such investments can bring to the indigenous electronics industry of the host country, and then considers how some of the successful electronics-based economies in the Far East have used strategic initiatives to further develop their industry into higher value-added activities