Learning through informal local and global linkages: The case of Taiwan's machine tool industry

Most existing studies of successful late industrialization, which draw on findings from high-technology industries, emphasize the need to invest in formal channels of technology acquisition to allow latecomers to catch up. This line of reasoning neglects the fact that in some industries, including low- and medium-technology (LMT) sectors, much knowledge can be acquired by informal means. Through the study of Taiwan's machine tool (MT) industry, this article demonstrates the significance of informal learning activities in LMT industries and the possibility for latecomer clusters to climb the technological ladder through exploiting various local and global informal knowledge linkages.