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Following the Money in the New Bifurcated American Economy: Profit Reinvestment in the Global Value Chains

10 Pages Posted: 19 Sep 2008  

Laurie Thomas Vass

The Private Capital Market

Date Written: July 29, 2008

Abstract

Our interest in writing this article is to create a bridge between the scholarly and academic research on technological innovation and a private sector, for-profit business model that implements the ideas on innovation and entrepreneurship, primarily in metro regional economies.

In this article we address the impact that a new form of economic bifurcation between firms that are connected to global markets, primarily multinational corporations, and firms that are not connected to global markets is having on regional rates of innovation.

We conclude that a recent trend in off-shoring research and development in the larger corporations has had a negative economic effect on the rates of regional innovation, primarily in the regional intermediate demand markets that formerly supplied inputs to the innovation process at the larger corporations.

Keywords: Industrial value chains, global value chains, b-to-b supply chains, innovation

JEL Classification: M13, O32, R15, R58

Suggested Citation

Vass, Laurie Thomas, Following the Money in the New Bifurcated American Economy: Profit Reinvestment in the Global Value Chains (July 29, 2008). Available at SSRN: https://ssrn.com/abstract=1268425 or http://dx.doi.org/10.2139/ssrn.1268425

Laurie Thomas Vass (Contact Author)

The Private Capital Market ( email )

Sunset Beach, NC 28468
United States
9199754856 (Phone)

HOME PAGE: http://www.privatecapitalmarket.com

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