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

Jason Dedrick, Kenneth L. Kraemer, Greg Linden

Research output: Contribution to journalArticlepeer-review

235 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 languageEnglish (US)
Article numberdtp032
Pages (from-to)81-116
Number of pages36
JournalIndustrial and Corporate Change
Volume19
Issue number1
DOIs
StatePublished - Jun 22 2009

ASJC Scopus subject areas

  • Economics and Econometrics

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