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

34 Pages Posted: 2 May 2008  

Jason Dedrick

University of California, Irvine

Kenneth L. Kraemer

University of California, Irvine - Center for Research on Information Technology and Organizations (CRITO)

Greg Linden

Institute for Business Innovation

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Date Written: April 24, 2008

Abstract

The power of innovation to create economic value and reward pioneers with exceptional profits is a deeply-held belief of inventors, entrepreneurs, investors and the public. Innovation can enrich companies and individuals and sometimes disrupt entire industries. Yet many studies have shown that the value from innovation is often captured by someone other than the original innovator, whether by imitators, suppliers of key components, intellectual property owners, or providers of related products and services. In an era when new ideas are brought to the market by networks of specialists rather than by one company, a key question is who captures the most value from innovation in such a structure, and why?

Suggested Citation

Dedrick, Jason and Kraemer, Kenneth L. and Linden, Greg, Who Profits from Innovation in Global Value Chains? A Study of the iPod and Notebook PCs (April 24, 2008). 2008 Industry Studies Conference Paper. Available at SSRN: https://ssrn.com/abstract=1125024 or http://dx.doi.org/10.2139/ssrn.1125024

Jason Dedrick (Contact Author)

University of California, Irvine ( email )

Campus Drive
Irvine, CA 62697-3125
United States

Kenneth L. Kraemer

University of California, Irvine - Center for Research on Information Technology and Organizations (CRITO) ( email )

Campus Drive
Irvine, CA 62697-3125
United States

Greg Linden

Institute for Business Innovation ( email )

F402 Haas School of Business, #1930
Berkeley, CA 94720-1930
United States

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