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Innovation, upgrading, and governance in cross-sectoral global value chains: the case of smartphones
[Institutions and sectoral logics in creative industries: the media cluster in Cologne]

Author

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  • Joonkoo Lee
  • Gary Gereffi

Abstract

The fourth industrial revolution challenges the existing understanding of innovation and upgrading in the global economy. It blurs traditional sectoral boundaries based on distinctive products and technologies and calls into question a traditional global value chain (GVC) perspective, which, similar to the sectoral systems of innovation approach, examines innovation and upgrading from a sector-based orientation. Building upon the recent reformulation and extension of GVC governance theory, this article proposes the notion of cross-sectoral GVC governance to capture the new stage of platform-based industrial development. It specifies the conceptual dimensions of cross-sectoral GVC governance in terms of the mode of governance (i.e., driving, linking, and normalizing), the overall GVC structure in terms of polarity, and firm strategies of managing GVCs. The proposed framework is illustrated using the case of smartphones as a platform product, focusing on four lead firms—Samsung, Apple, Huawei, and Google—to showcase divergent firm strategies for governing cross-sectoral linkages related to innovation and upgrading.

Suggested Citation

  • Joonkoo Lee & Gary Gereffi, 2021. "Innovation, upgrading, and governance in cross-sectoral global value chains: the case of smartphones [Institutions and sectoral logics in creative industries: the media cluster in Cologne]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 30(1), pages 215-231.
    • Handle: RePEc:oup:indcch:v:30:y:2021:i:1:p:215-231.
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    File URL: http://hdl.handle.net/10.1093/icc/dtaa062
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    Citations

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    Cited by:

    1. Ruilin Yang & Harald Bathelt, 2022. "China's outward investment activity: Ambiguous findings in the literature and empirical trends in greenfield investments," Growth and Change, Wiley Blackwell, vol. 53(1), pages 313-341, March.
    2. Butollo, Florian & Gereffi, Gary & Yang, Chun & Krzywdzinski, Martin, 2022. "Digital transformation and value chains: Introduction," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 22(4), pages 585-594.
    3. Rongrong Zhou & Decai Tang & Dan Da & Wenya Chen & Lin Kong & Valentina Boamah, 2022. "Research on China’s Manufacturing Industry Moving towards the Middle and High-End of the GVC Driven by Digital Economy," Sustainability, MDPI, vol. 14(13), pages 1-30, June.
    4. Halit Yanikkaya & Abdullah Altun & Pınar Tat, 2023. "Once again “smile curve”: Is chain upgrading possible?," Review of Development Economics, Wiley Blackwell, vol. 27(1), pages 62-88, February.
    5. Wu, Jie & Zahoor, Nadia & Khan, Zaheer & Meyer, Martin, 2023. "The effects of inward FDI communities on the research and development intensity of emerging market locally domiciled firms: Partial foreign ownership as a contingency," Journal of Business Research, Elsevier, vol. 156(C).

    More about this item

    Keywords

    L1; L6; O1; O3;
    All these keywords.

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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