The political economy of Southeast Asia's techno-glocalism

Asian economies' prospects for upward mobility within the global division of labour hinge significantly on the degree to which transnational corporations' (TNCs) global production networks (GPNs) accommodate or hinder their efforts to shift from simple production into more remunerative roles. A growing literature notes the rise in various countries of a 'neo-techno-nationalism' that aims to bolster local innovation and challenge TNCs' technologically derived leverage over the distribution of roles and rewards within GPNs. Industrial and technological policies in Southeast Asia, however, reflect a quite different 'techno-glocalist' strategy. Such strategies are based on a 'governance bargain' in which host governments, in exchange for technological upgrading, facilitate TNCs' exercise of governance authority transnationally as well as in coordinating local investments in innovation and other cluster-building activities. They highlight a conceptual distinction between the degree of internalization and hierarchy within networks that is typically elided in theories of GPN governance.