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

Posted: 1 Feb 2010

See all articles by Jason Dedrick

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: February 2010

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.

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 (February 2010). Industrial and Corporate Change, Vol. 19, Issue 1, pp. 81-116, 2010. Available at SSRN: https://ssrn.com/abstract=1544148 or http://dx.doi.org/dtp032

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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