10 Pages Posted: 19 Sep 2008
Date Written: July 29, 2008
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: 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