Options
2009
Book Article
Titel
Production technology in high-wage countries - From ideas of today to products of tomorrow
Abstract
Competition between manufacturing companies in high-wage and low-wage countries typically occurs within two dimensions: the production-oriented economy and the planning-oriented economy (BRECHER et al. 2007). Low-wage countries' productions economically compensate possible disadvantages within process times, factor consumption and process mastering by low productive factor cost. In contrast, companies in high-wage countries try to maximize the economies-of scale - that is, the utilization of the relatively expensive productivity factors. More and more unit cost disadvantages arise for high-wage countries, which they try to compensate through customizing and fast adaptations to market needs, economies-of-scope. The share of production within the value chain decreases more and more. Thus the realizable economies-of-scale decreases too. The escape into sophisticated niche markets is not promising, either.