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Paper short abstract:

The paper presents four business models of electronics firms in Kazakhstan, highlighting strategies for advancing electronics production and collaborating with international partners. The firms range from those reliant on technology transfer to those investing in local R&D and software development.

Paper long abstract:

Amid China's growing influence in the digital arena, its role as a key supplier of electronic components for Southern firms outsourcing manufacturing has been underexplored. This article applies the Global Production Network (GPN) theory to Kazakhstan’s electronics sector, examining technological catch-up in South-South relations. It investigates the models of technological development pursued by Kazakhstani firms and their integration into global networks of technology transfer and production.

Based on fieldwork interviews with local electronics companies in Kazakhstan in 2023, the article identifies four business models that showcase different strategies for building expertise, production, and innovation capabilities and collaboration with international—primarily Chinese—partners. These firms range from those heavily reliant on tech transfer, such as localising Russian and Chinese technologies with limited local hardware production, software development, and final assembly, to those developing independent R&D and software capabilities on top of imported hardware, such as a fabless IT company with in-house R&D and outsourced component production.

GPN theory, with its focus on the organization and governance of global industries, helps highlight how Kazakhstani firms are embedded in global networks of technology transfer and production, shaped by power asymmetries, geopolitical dynamics, and dependence on foreign know-how. Despite diversification across suppliers from China, Russia, and the West, Chinese partnerships are the majority, as firms emphasize the necessity of Chinese technology due to the lack of local manufacturing capacity and cost-effective, reliable international alternatives. While Kazakhstan’s electronics sector remains in its early stages, state programs, local private capital, and foreign partnerships offer pathways for growth.