Evolution of Technology Sourcing Strategies of Korean Electronics Companies: The Case of Samsung Electronics

Empirical research has demonstrated that the majority of technological and industrial domains are persistently dominated by firms from a limited number of countries over extended periods. Endogenous growth theory offers an explanation for this persistence, positing that technological catch-up is challenging due to increasing returns to scale of physical and human resources and the geographical localization of technological knowledge. Despite the ominous implications of these new growth theories for developing nations, Korea is a notable exemplar of countries that have indeed “caught up” and are now leaders in a number of technological domains, including electronics and semiconductors. In the semiconductor industry, for instance, Korea has transitioned from a producer of discrete devices to a global leader in the memory chip industry over the span of approximately ten years. How did Korean electronics firms such as Samsung Electronics acquire and develop technologies so rapidly? What kind of knowledge sourcing modes such as in-house R&D, licensing, alliances, and learning-by-hiring have electronics firms in used to acquire knowledge and build their innovative capacities? This study analyzes the evolution of knowledge sourcing modes employed by Korean electronics firms, with a case study of Samsung Electronics.