Innovation in East Asia is the first book to show how 'latecomer' firms from Taiwan, South Korea, Hong Kong and Singapore have caught up technologically with Japan and learned to innovate. Michael Hobday examines the technology acquisition strategies of these firms, their strengths and weaknesses, and the origin and extent of latecomer innovation in the region. A series of detailed case studies is used not only to show how individual companies developed, but also how large groups of firms formed industrial clusters from behind the technology frontier. Taiwan, South Korea, Hong Kong and Singapore have emerged as dynamic and distinct forces for growth and innovation. Increasingly the competitive challenge to Japan comes from these countries rather than from Europe and America. The book extends conventional innovation theory to develop an analytical framework for understanding the strengths, weaknesses and future prospects of latecomer firms.