National competitive advantage and cultural proximity: Comparison study of digital content industries in China and Taiwan

Abstract

Digital content industries produce “products or services that use information technology to digitize and integrate media materials.” Both China and Taiwan show strong interests and demand in developing digital content. Based on Dunning-Porter framework, this study examined national competitive advantages of digital content industries in China and Taiwan. It also took into account the cultural and geographical proximity to compare Chinese and Taiwanese digital content industries. With respect to national competitive advantages in internal determinants, China’s digital content industries led in demand conditions and some aspects of factor conditions (human resource), while Taiwanese digital content industries excel in related and supporting industries (traditional media, IT and marketing industries) as well as firm strategy, structure and rivalry. As for external determinants, both China and Taiwan governments provided favorable policies to foster the development of digital content industries.