Who profits from innovation in global value chains?: A study of the iPod and notebook PCs

Jason Dedrick; Kenneth L. Kraemer; Greg Linden

doi:10.1093/icc/dtp032

Who profits from innovation in global value chains? A study of the iPod and notebook PCs

Jason Dedrick, Kenneth L. Kraemer, Greg Linden

School of Information Studies

Research output: Contribution to journal › Article › peer-review

368 Scopus citations

Abstract

This article analyzes the distribution of financial value from innovation in the global supply chains of iPods and notebook computers. We find that Apple has captured a great deal of value from the innovation embodied in the iPod, while notebook makers capture a more modest share of the value from PC innovation. In order to understand these differences, we employ concepts from theories of innovation and industrial organization, finding significant roles for industry evolution, complementary assets, appropriability, system integration, and bargaining power.

Original language	English (US)
Pages (from-to)	81-116
Number of pages	36
Journal	Industrial and Corporate Change
Volume	19
Issue number	1
DOIs	https://doi.org/10.1093/icc/dtp032
State	Published - Jun 22 2009

ASJC Scopus subject areas

Economics and Econometrics

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10.1093/icc/dtp032

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abstract = "This article analyzes the distribution of financial value from innovation in the global supply chains of iPods and notebook computers. We find that Apple has captured a great deal of value from the innovation embodied in the iPod, while notebook makers capture a more modest share of the value from PC innovation. In order to understand these differences, we employ concepts from theories of innovation and industrial organization, finding significant roles for industry evolution, complementary assets, appropriability, system integration, and bargaining power.",

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note = "Funding Information: We are grateful to Joel West and an anonymous reviewer for helpful suggestions. This work was supported by grants from the Alfred P. Sloan Foundation and the US National Science Foundation [SBE HSD 0527180]. Any opinions, findings, and conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of the sponsors.",

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Who profits from innovation in global value chains? A study of the iPod and notebook PCs

Abstract

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