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The Services Transformation and Network Policy: The New Logic of Value Creation1

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  • Kenji E. Kushida
  • John Zysman

Abstract

There is currently a fundamental transformation of services, a transformation central to the growth of productivity and competition in the global economy. This transformation, a response to commodification generated by decomposition of production and intensified competition in global markets, is driven by developments in IT tools, the uses they are being put to, and the networks they run on. The service transformation is changing how firms add value, affecting the underlying economic activity in countries around the world. This article introduces the notion of the services transformation, placing it in the historical context of production and competition, noting the advent of the Internet as a critical building block. Second, we consider national strategies for capturing value in this new era. The experiences of Japan and Korea, successful in deploying high‐speed IT networks, but facing unexpected challenges in using them to capture value, highlight several features of the services transformation.

Suggested Citation

  • Kenji E. Kushida & John Zysman, 2009. "The Services Transformation and Network Policy: The New Logic of Value Creation1," Review of Policy Research, Policy Studies Organization, vol. 26(1‐2), pages 173-194, January.
    • Handle: RePEc:bla:revpol:v:26:y:2009:i:1-2:p:173-194
    DOI: 10.1111/j.1541-1338.2008.00374.x
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    Cited by:

    1. Kenji Kushida, 2011. "Leading without Followers: How Politics and Market Dynamics Trapped Innovations in Japan’s Domestic “Galapagos” Telecommunications Sector," Journal of Industry, Competition and Trade, Springer, vol. 11(3), pages 279-307, September.
    2. Kenji E. KUSHIDA, 2013. "Public Private Interplay for Next Generation Access Networks: Lessons and Warnings from Japan’s Broadband Success," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(91), pages 13-34, 3rd quart.
    3. Kenji KUSHIDA & Jonathan MURRAY & John ZYSMAN, 2012. "The Gathering Storm: Analyzing the Cloud Computing Ecosystem and Implications for Public Policy," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(85), pages 63-85, 1st quart.
    4. Jadranka Švarc & Marina Dabić, 2017. "Evolution of the Knowledge Economy: a Historical Perspective with an Application to the Case of Europe," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 8(1), pages 159-176, March.
    5. Kenney, Martin & Pon, Bryan, 2011. "Structuring the Smartphone Industry. Is the Mobile Internet OS Platform the Key?," Discussion Papers 1238, The Research Institute of the Finnish Economy.
    6. Martin Kenney & Bryan Pon, 2011. "Structuring the Smartphone Industry: Is the Mobile Internet OS Platform the Key?," Journal of Industry, Competition and Trade, Springer, vol. 11(3), pages 239-261, September.
    7. Breznitz, Dan & Zehavi, Amos, 2010. "The limits of capital: Transcending the public financer-private producer split in industrial R&D," Research Policy, Elsevier, vol. 39(2), pages 301-312, March.
    8. Tobias Heinrich & Christopher Witko, 2021. "Technology‐Induced Job Loss and the Prioritization of Economic Problems in the Mass Public," Review of Policy Research, Policy Studies Organization, vol. 38(2), pages 164-179, March.
    9. Kenji Kushida & Jonathan Murray & John Zysman, 2011. "Diffusing the Cloud: Cloud Computing and Implications for Public Policy," Journal of Industry, Competition and Trade, Springer, vol. 11(3), pages 209-237, September.

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