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With electronics - like with most physical products - having your production facilities near your suppliers and customers, and having lots of low cost labor, ha
by danmaz74 9y ago
With electronics - like with most physical products - having your production facilities near your suppliers and customers, and having lots of low cost labor, has a really big impact. With software, it's a completely different story.
- baybal2 9y agoNot that much. It is an illusion that Shenzhen has an overwhelming advantage from the cluster effect. China still imports even passive components from Taiwan, and labour costs for professionally trained assembly line staff are higher than in some parts of Europe. It is 100% percent due to intellectual capital there. Multiple cities in China has more developers than a whole state of California. Just now the lion share of them toil in China's analogues of pets.com, or outsourcing sweatshops for Western online giants like Amazon. It will be take just a flick to turn the tide in reverse when Chinese domestic companies get to the point when making software for themselves will make more money than selling as a service outside. Then, the chain reaction will start.