Who Profits from Innovation in Global Value Chains? A Study of the iPod and Notebook PCs

Dedrick, Jason; Kraemer, Kenneth L.; Linden, Greg

doi:10.2139/ssrn.1125024

Cited by 145 publications

(177 citation statements)

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“…Assembly jobs were roughly 90% non-professional and 10% professional, and located in Malaysia and Thailand. Surprisingly, the ratio of U.S. jobs to non-U.S. jobs for the case company was much higher than other researchers studying global value chains have found (Gourevitch et al, 2000;Dedrick et al, 2009). Consequently, we calculated the job mix for another vertically integrated U.S. HDD company and took the average of the two (30% U.S. jobs and 70% non-U.S. jobs), which was more representative of the industry.…”

Section: Benefits To Countries 631 Jobs and Wages For Us Head Macontrasting

confidence: 59%

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Who captures value from science-based innovation? The distribution of benefits from GMR in the hard disk drive industry

Dedrick

Kraemer

2015

Research Policy

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Hard disk drive industry a b s t r a c tWe analyze the discovery of giant magneto-resistance (GMR) and its development and commercialization by the global disk drive industry to answer the question of "Who captures the benefits from innovation in a global innovation system?" We assess the returns to the scientists, firms, and countries associated with GMR. We find that the French and German scientists that discovered GMR and their labs benefited by receiving the Nobel Prize and small licensing fees. The firm that first commercialized the technology, IBM, captured profits from selling hard disk drives and magnetic heads using GMR. Other hard disk drive and head manufacturers based in the U.S. and Japan were able to quickly assimilate the technology and catch up with IBM. France and Germany reaped limited returns due to the lack of domestic firms with the absorptive capacity to commercialize GMR. The U.S. and Japan benefited from the success of their firms in commercializing GMR, as did other countries which were part of the global value chains of those companies. Consumers and firms that incorporated hard drives in their products ultimately benefited from cheaper hard drives with greater capacity. These findings illustrate the importance of absorptive capacity at the firm and national level in capturing benefits from innovation. They also show that the benefits to first mover firms can be short-lived in a competitive industry with open transfer of knowledge and limited appropriability regimes. Finally, they show that the location of jobs and wages associated with innovative products depends on the structure of the global value chains of leading firms.

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Section: Benefits To Countries 631 Jobs and Wages For Us Head Macontrasting

confidence: 59%

“…We use multiple methods and measures to assess value capture from the GMR discovery and commercialization by individuals, companies and countries, similar to Gourevitch et al (2000, p. 305), Dedrick et al (2009) and Linden et al (2011).…”

Section: Methodology For Measuring Value Capturementioning

confidence: 99%

Who captures value from science-based innovation? The distribution of benefits from GMR in the hard disk drive industry

Dedrick

Kraemer

2015

Research Policy

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“…Domestic content accounts for only about half of China's manufacturing exports and it is even smaller (18 per cent) in its processing exports, mostly done by foreign-owned firms (Koopman et al, 2008). 11 Note that the iPhone study and other similar studies (e.g., Linden et al, 2009;Dedrick et al, 2010) are based on tear-down analysis generated by supply chain management consultancies such as iSuppli. Learning, Innovation and Development, 2011).…”

Section: Notesmentioning

confidence: 99%

Global value chains in a post-Washington Consensus world

Gereffi

2013

Review of International Political Economy

704

401

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Contemporary globalization has been marked by significant shifts in the organization and governance of global industries. In the 1970s and 1980s, one such shift was characterized by the emergence of buyer-driven and producer-driven commodity chains. In the early 2000s, a more differentiated typology of governance structures was introduced, which focused on new types of coordination in global value chains (GVCs). Today the organization of the global economy is entering another phase, with transformations that are reshaping the governance structures of both GVCs and global capitalism at various levels: (1) the end of the Washington Consensus and the rise of contending centers of economic and political power; (2) a combination of geographic consolidation and value chain concentration in the global supply base, which, in some cases, is shifting bargaining power from lead firms in GVCs to large suppliers in developing economies; (3) new patterns of strategic coordination among value chain actors; (4) a shift in the end markets of many GVCs accelerated by the economic crisis of 2008-09, which is redefining regional geographies of investment and trade; and (5) a diffusion of the GVC approach to major international donor agencies, which is prompting a reformulation of established development paradigms.

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“…Pelo contrário, as grandes empresas, ao mesmo tempo em que se desfaziam de atividades fora do core business consideradas não essenciais, mesmo na manufatura, buscaram reforçar seus ativos intangíveis, aumentar o controle sobre padrões tecnológicos e adquirir ativos de concorrentes estratégicos através de um processo intenso de fusões e aquisições (Chesnais, 1996;Dedrick et al, 2009). A elevação do poder de comando das grandes corporações dos países centrais sobre o valor gerado nas diferentes regiões foi potencializado e o aumento da escala global passou a ser um fator fundamental na luta competitiva, resultado das vantagens associadas à capacidade de diversificar riscos, operar em vários mercados, explorar diferenciais de custos e vantagens de localização em diferentes regiões.…”

Section: O Debate Sobre a Desindustrialização No Brasil E Seus Limitesunclassified

Transformações na estrutura produtiva global, desindustrialização e desenvolvimento industrial no Brasil

Hiratuka

Sarti

2017

Rev. Econ. Polit.

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CéLIo hIraTuKa fernando SarTI*RESUMo: Este artigo tem como principal objetivo destacar as principais transformações da economia global que condicionam o desenvolvimento industrial brasileiro e suas possibilidades de avançar em direção a uma estrutura produtiva mais robusta. Argumenta--se que o debate sobre a desindustrialização no Brasil, embora tenha tido uma importante contribuição para ressaltar a importância da indústria para o desenvolvimento econômico, não aprofundou a discussão sobre os limites e possibilidades de desenvolvimento industrial brasileiro por não considerar adequadamente estas transformações, associadas principalmente ao acirramento da concorrência global e à reorganização das grandes empresas transnacionais. PALAVRAS-ChAVE: desindustrialização; desenvolvimento industrial; indústria brasileira.ABSTRACT: This paper aims to highlight the major changes in the global economy that affect Brazilian industrial development and mark out the strategies that could move the country toward a more robust productive structure. It is argued that the debate on deindustrialization in Brazil, although it had an important contribution to highlight the importance of manufacturing for economic development, did not deep the discussion about the limits and possibilities of Brazilian industrial development. That debate did not adequately consider those changes in the global economy, related to the more fierce global competition scenario and to the changes in the strategies of Transnational Corporations.

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Who Profits from Innovation in Global Value Chains? A Study of the iPod and Notebook PCs

Cited by 145 publications

References 18 publications

Who captures value from science-based innovation? The distribution of benefits from GMR in the hard disk drive industry

Who captures value from science-based innovation? The distribution of benefits from GMR in the hard disk drive industry

Global value chains in a post-Washington Consensus world

Transformações na estrutura produtiva global, desindustrialização e desenvolvimento industrial no Brasil

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