This chapter examines, in comparative perspective, technological learning among firms in two Malaysian industries: the technology-creating industry of electronics and the technology-using industry of garments. This is accomplished through an inductive research framework and a typology of taxonomies and trajectories to capture the drivers of learning and innovation. Technical change is then analyzed through proxies that capture its intensity, embodied in employees, processes and organization, and products. The technological capabilities of firms in both industries improved over the 2000–7 period. However, only a handful of firms in both industries reported participation at the highest knowledge levels. Whereas garment manufacturing is likely to contract further, given its increasing returns properties, efforts must be taken to stimulate movement of electronics firms to the highest knowledge levels.
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