Jason Dedrick

Who captures value in a global innovation network?: the case of Apple's iPod

In novatIon Is often touted as a k ey drIv er o f economic growth.7, 11 However, when firms operate within production and innovation networks that span national and firm boundaries, the question arises as to who actually benefits from innovation. Is it the home country of the innovating firm, the country where the innovative product is manufactured, or the countries that supply the key high value components? This question recalls a debate in the early 1990s between Robert Reich and Laura Tyson. Reich 9 argued that the nationality of firms was less important than what activities they carried out in the U.S. or abroad; that is, a foreign company with a large U.S. workforce was more valuable to the U.S. than an American company whose workers were mostly abroad. Tyson12 responded that this case was actually quite rare, and that most companies retained a large share of high value activities in their home country; therefore ownership still mattered. The Reich-Tyson debate took place in an era when few had heard of the Internet or outsourcing, when vertically integrated multinational corporations still dominated most high-technology industries, and China and India were just taking their first tentative steps into the global hardware and software industries. Yet, while the world looks much different today, the core question debated then is just as relevant. For instance, an innovative product may be designed in one country, manufactured in another, with software developed in a third, and components sourced from several other countries. In such a case, how are the benefits distributed? To begin to unravel that question, we have moved away from macroeconomics and down to a micro-level analysis of one well-known innovative product, the Apple iPod. The iPod is designed and marketed by an American company, assembled by Taiwanese manufacturers in China, and includes key parts from Japanese, Korean and U.S. suppliers. So who captures the value generated by this hugely successful innovation? How much would the answer differ if the iPod were sold by Sony or Samsung instead of Apple, or if it were assembled in the U.S.? This paper develops a framework for analysis based on financial measures of value capture, and uses that framework to study one iPod model to provide one perspective on these questions.

Pulling Offshore and Staying Onshore: A Framework for Analysis of Offshoring Dynamics

Author(s): Carmel, E; Dedrick, J; Kraemer, KL | Abstract: Given that the force of offshoring is one of the most important economic changes in the early 2000s it is vital to understand what propels it further. The landscape of offshoring is such that firms in the wealthy nations (onshore) have already off-shored, sometimes extensively. As researchers, we need to ask not whether the firm will offshore, but rather how far the firm will go offshore and what are the subtle factors that are driving this offshore decision process. Therefore, in this paper we propose a framework in order to understand the firm-level decisions that are not as well understood and not as well researched. There are a number of key variables that we already collectively know about offshoring. First, we already know that offshoring is driven by low wages and large labor pools in India, China and elsewhere. Thus, everything else being equal, work will flow to the less expensive offshore locations.

Global e-Commerce: Frontmatter

Preface 1. Globalization and national diversity: e-commerce diffusion and impacts across nations Kenneth L. Kraemer, Jason Dedrick and Nigel Melville 2. The United States: adaptive integration versus the Silicon Valley Model Jason Dedrick, Kenneth L. Kraemer, John L. King and Kalle Lyytinen 3. France: an alternative path to internet-based e-commerce Eric Brousseau and Bruno Chaves 4. Germany: a fast follower of e-commerce technologies and practices Wolfgang Konig, Rolf Wigand and Roman Beck 5. Japan: local innovation and diversity in e-commerce Dennis Tachiki, Satoshi Hamaya and Kou Yukawa 6. China: overcoming institutional barriers to e-commerce Zixiang (Alex) Tan and Ouyang Wu 7. Taiwan: diffusion and impacts of the internet and e-commerce in a hybrid economy Tain-Jy Chen 8. Brazil: e-commerce shaped by local forces Paulo Bastos Tigre 9. Mexico: global engagement driving e-commerce adoption and impacts Juan J. Palacios 10. Global diffusion and convergence of e-commerce: cross-country analyses Kevin Zhu, Sean Xu, Kenneth L. Kraemer and Jason Dedrick Appendix I. Data collection and survey instrument Appendix II. GEC survey measures by industry sector and firm size Appendix III. GEC survey measures by country Index.

Global e-Commerce: List of boxes

Preface 1. Globalization and national diversity: e-commerce diffusion and impacts across nations Kenneth L. Kraemer, Jason Dedrick and Nigel Melville 2. The United States: adaptive integration versus the Silicon Valley Model Jason Dedrick, Kenneth L. Kraemer, John L. King and Kalle Lyytinen 3. France: an alternative path to internet-based e-commerce Eric Brousseau and Bruno Chaves 4. Germany: a fast follower of e-commerce technologies and practices Wolfgang Konig, Rolf Wigand and Roman Beck 5. Japan: local innovation and diversity in e-commerce Dennis Tachiki, Satoshi Hamaya and Kou Yukawa 6. China: overcoming institutional barriers to e-commerce Zixiang (Alex) Tan and Ouyang Wu 7. Taiwan: diffusion and impacts of the internet and e-commerce in a hybrid economy Tain-Jy Chen 8. Brazil: e-commerce shaped by local forces Paulo Bastos Tigre 9. Mexico: global engagement driving e-commerce adoption and impacts Juan J. Palacios 10. Global diffusion and convergence of e-commerce: cross-country analyses Kevin Zhu, Sean Xu, Kenneth L. Kraemer and Jason Dedrick Appendix I. Data collection and survey instrument Appendix II. GEC survey measures by industry sector and firm size Appendix III. GEC survey measures by country Index.

Global e-Commerce: List of tables

Preface 1. Globalization and national diversity: e-commerce diffusion and impacts across nations Kenneth L. Kraemer, Jason Dedrick and Nigel Melville 2. The United States: adaptive integration versus the Silicon Valley Model Jason Dedrick, Kenneth L. Kraemer, John L. King and Kalle Lyytinen 3. France: an alternative path to internet-based e-commerce Eric Brousseau and Bruno Chaves 4. Germany: a fast follower of e-commerce technologies and practices Wolfgang Konig, Rolf Wigand and Roman Beck 5. Japan: local innovation and diversity in e-commerce Dennis Tachiki, Satoshi Hamaya and Kou Yukawa 6. China: overcoming institutional barriers to e-commerce Zixiang (Alex) Tan and Ouyang Wu 7. Taiwan: diffusion and impacts of the internet and e-commerce in a hybrid economy Tain-Jy Chen 8. Brazil: e-commerce shaped by local forces Paulo Bastos Tigre 9. Mexico: global engagement driving e-commerce adoption and impacts Juan J. Palacios 10. Global diffusion and convergence of e-commerce: cross-country analyses Kevin Zhu, Sean Xu, Kenneth L. Kraemer and Jason Dedrick Appendix I. Data collection and survey instrument Appendix II. GEC survey measures by industry sector and firm size Appendix III. GEC survey measures by country Index.

Global e-Commerce: List of figures

Preface 1. Globalization and national diversity: e-commerce diffusion and impacts across nations Kenneth L. Kraemer, Jason Dedrick and Nigel Melville 2. The United States: adaptive integration versus the Silicon Valley Model Jason Dedrick, Kenneth L. Kraemer, John L. King and Kalle Lyytinen 3. France: an alternative path to internet-based e-commerce Eric Brousseau and Bruno Chaves 4. Germany: a fast follower of e-commerce technologies and practices Wolfgang Konig, Rolf Wigand and Roman Beck 5. Japan: local innovation and diversity in e-commerce Dennis Tachiki, Satoshi Hamaya and Kou Yukawa 6. China: overcoming institutional barriers to e-commerce Zixiang (Alex) Tan and Ouyang Wu 7. Taiwan: diffusion and impacts of the internet and e-commerce in a hybrid economy Tain-Jy Chen 8. Brazil: e-commerce shaped by local forces Paulo Bastos Tigre 9. Mexico: global engagement driving e-commerce adoption and impacts Juan J. Palacios 10. Global diffusion and convergence of e-commerce: cross-country analyses Kevin Zhu, Sean Xu, Kenneth L. Kraemer and Jason Dedrick Appendix I. Data collection and survey instrument Appendix II. GEC survey measures by industry sector and firm size Appendix III. GEC survey measures by country Index.