The role of a technological platform in facilitating innovation in the global value chain: a case study of China's mobile phone industry

Ding Ke and Hioki Shiro

No 692, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)

Abstract: This study investigates the role of a technological platform in facilitating innovation in the global value chain. The literature argues that a technological platform facilitates innovation through its modular archite paradoxically facilitated by the Qualcomm platform with a low degree of modularity. Several reasons are responsible for this phenomenon. First, innovation in the mobile phone industryhas altered into a systemic innovation. Second, Qualcomm formulated a strategy that enables deep product differentiation, which precisely satisfied the upgraded domestic demands in China. Third, Chinese firms have accumulated strong capabilities that receive special technical support from Qualcomm. Fourth, stimulated by its unique licensing model, Qualcomm has been strongly motivated to help conditions and institutional arrangements, technological platforms can possibly help firms in developing countries to engage in innovation and create value.

Keywords: China; Telephone; Technological innovations; Technological platform; Modularity; Systemic innovation; Revenue-sharing contract (search for similar items in EconPapers)
JEL-codes: L20 O10 O30 (search for similar items in EconPapers)
Date: 2018-02
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in IDE Discussion Paper = IDE Discussion Paper, No. 692. 2018-02

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