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Innovation and its Implications for Reshoring

In recent days, some multinational companies brought their production or procurement activities back to their home country to utilize innovative technology and automotive manufacturing. The German federal government introduced the Industry 4.0 initiative in 2011 as part of its high-tech strategy, aiming to strengthen Germanys competitiveness as a manufacturing location, and it has a positive influence on the trend of reshoring. The government of Taiwan provides incentives for R&D to encourage Taiwanese multinational firms to move production activities back to the home country. The Korean government also announced its reshoring policy in 2013 to facilitate the reshoring of manufacturing companies. However, as of yet, only 44 Korean manufacturers have returned to the country and the reshoring policy is far from effective or substantial. Therefore, in order to attract foreign-invested firms to the country, we need to improve the investment environment and provide a friendly environment for technological innovation.  

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