‪Innovation as economic power in Global Value Chains‪

Cecilia Rikap

Revue d'économie industrielle, 2018, vol. n° 163, issue 3, 35-75

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.

Keywords: Global Value Chains; Global Innovation Networks; inter-firm power relations; technological rents; Apple Inc. (search for similar items in EconPapers)
JEL-codes: F23 F50 O34 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (6)

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