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All Journal STI Policy and Management Journal
Mayasuki Kondo
Yokohama National University

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Automation and ‘Thailand +1” Strategy of Japanese Companies in Thailand by Thai Engineers Mayasuki Kondo
STI Policy and Management Journal Vol 6, No 2 (2021): STI Policy and Management
Publisher : Center for Science and Technology Development Studies, Indonesian Institute of Sciences

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.14203/STIPM.2021.312

Abstract

AbstractJapanese companies have the second largest number of overseas manufacturing sites in Thailand after in China. To cope with labor cost increase, on one hand, they automate their production processes using robots. On the other hand, they establish satellite manufacturing sites in neighboring lower labor cost countries. This movement is called “Thailand+1” Strategy. The paper discusses these two movements comparing with the experiences of Japanese companies in Japan in the late 1980s coping with rapid Japanese Yen appreciation. The paper discusses that the automation in Thailand now is more systematic and needs system integrators and that local engineers need to be trained as system integrators since the technological operation in Thailand is already heavily localized. In the case of Japan in the late 1980s, shop-floor workers were needed to be mechatronics operators since individual machines became IT (Information Technology) -based. For the “Thailand +1” Strategy, only a part of production process, which is heavily labor-intensive, is moved out as a satellite factory, while in the case of Japan in the 1980s a whole assembling process was moved out and many parts suppliers followed.  Another difference is that local engineers (Thai engineers) play an important role in technology transfer in the case of the “Thailand +1” Strategy, while Japanese engineers transferred technology to overseas factories in the case of Japanese companies in the late 1980s.  Japanese companies have become globally operated from Japan-centered. Keywords: Automation, Thailand+1 Strategy, Japanese Companies, Thai Engineers
Intellectual Property Creation of Japanese Companies in China and Thailand Mayasuki Kondo
STI Policy and Management Journal Vol 1, No 1 (2016): STI Policy and Management
Publisher : Center for Science and Technology Development Studies, Indonesian Institute of Sciences

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (497.743 KB) | DOI: 10.14203/STIPM.2016.31

Abstract

In the age of globalization, Japanese companies are globalizing their operations. They have recently been increasing the number of overseas R&D centers in Asia, especially in China and Thailand. Using the United States patent and industrial design data, the paper finds the following points quantitatively. Japanese companies are increasing the number of patents and industrial designs created in the two countries. They used local talents from the beginning in China for both patents and industrial designs. In Thailand, they used local talents for industrial designs from the beginning, while Japanese expertise in Thailand was used for patents in the beginning. In any case, the role of Japanese in Japan is important. Compared with multi-national companies (MNCs) from other countries, the IP creation activities of Japanese companies are weak compared to their amount of foreign direct investment to China and Thailand.
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