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Innovation as economic power in Global Value Chains

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  • Cecilia Rikap

Abstract

?Global Value Chains (GVC) have been criticized for assuming power relations mainly based on empirical analyses. Although some authors focus on entry barriers to explain the emergence of market-power, those barriers? porosity contradicts the sole entry barriers argument. We explore this genesis of power between enterprises and their effects to better understand GVC dynamics in general, and Apple Inc.?s chain in particular. We suggest that monopolizing innovations can be conceived as a self-reinforcing source of power capable of overcoming entry barriers? porosity. In this context, we state that the long term dynamic of GVC centrally depends on the capacity of the leader to keep its innovation?s monopoly. We also suggest a typology of subordinated firms useful for understanding the different participants of Apple Inc.?s GVC. ? JEL classification : F23, F50, O34.

Suggested Citation

  • Cecilia Rikap, 2018. "Innovation as economic power in Global Value Chains," Revue d'économie industrielle, De Boeck Université, vol. 0(3), pages 35-75.
    • Handle: RePEc:cai:reidbu:rei_163_0035
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    Citations

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    Cited by:

    1. Rikap, Cecilia, 2022. "Becoming an intellectual monopoly by relying on the national innovation system: the State Grid Corporation of China's experience," Research Policy, Elsevier, vol. 51(4).
    2. Andrea Coveri & Claudio Cozza & Dario Guarascio, 2021. "Monopoly Capitalism in the Digital Era," Working Papers in Public Economics 209, University of Rome La Sapienza, Department of Economics and Law.
    3. Hervé Lanotte & Aurélie Ringeval-Deluze & Erick Pruchnicki, 2022. "The stabilising effects on GVCs of multi-annual supply contracts between leading and subordinate firms: The example of champagne [Les effets stabilisateurs sur la CGV des contrats pluriannuels d’ap," Post-Print hal-04021392, HAL.
    4. Joel Rabinovich, 2022. "The evolving contribution of R&D, advertising and capital expenditures for US-listed firms’ growth in sales, 1979-2018. A quantile regression analysis," Working Papers hal-03539656, HAL.
    5. Rikap, Cecilia & Flacher, David, 2020. "Who collects intellectual rents from knowledge and innovation hubs? questioning the sustainability of the singapore model," Structural Change and Economic Dynamics, Elsevier, vol. 55(C), pages 59-73.

    More about this item

    Keywords

    Global Value Chains; Global Innovation Networks; inter-firm power relations; technological rents; Apple Inc.;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F50 - International Economics - - International Relations, National Security, and International Political Economy - - - General
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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