Asia and the Global Economy (Jul 2023)
Shifted paradigm in technonationalism in the 21st century: The influence of global value chain (GVC) and US-China competition on international politics and global commerce —A case study of Japan's semiconductor industry
Abstract
Because of escalating technological conflicts, the US-China technology war, and hegemonic competition since the late 2010s, “technonationalism,” has become a critical topic in the international political economy, and this study contributes to the ongoing discussion proposing two mediating variables, the global value chain (GVC) and the US-China competition in the 2010s. First, we propose a shift in the technonationalist paradigm, from focusing on a single-state approach with an industrial policy oriented toward development to a multistate focus approach with a geoeconomic strategy oriented toward security. It also highlights the integration of business interests into the national strategic agenda as a critical criterion. Second, the study examines investment in Japan by Elpida Memory, Kioxia, and Taiwan Semiconductor Manufacturing Company. Based on Japan as a case study, the findings show a shift to technonationalism, as the government responds to changes in international political conditions, rather than to domestic demands for supporting a specific segment of the semiconductor industry.
