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The changing geography and ownership of value creation: evidence from mobile telecommunications

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  • Marcus M. Larsen
  • Timo Seppälä
  • Jyrki Ali-Yrkkö

Abstract

Through an innovative trade-in-task case study, we explore how Nokia, which is historically one of the most important mobile phone manufacturers in the world, offshored the development and production of three distinct mobile phones at three different points in time. Adjacent to these processes, we find that the value creation in areas such as design and manufacturing knowledge has rapidly shifted away from advanced economies to emerging economies. Moreover, we find that the value added captured by Nokia decreased dramatically over the studied time period. Based on our results, we uss more generally the challenge of multinational corporations to preserve value and how the realisation of the benefits of offshoring must be assessed with respect to the altered requirements for controlling value-adding activities.

Suggested Citation

  • Marcus M. Larsen & Timo Seppälä & Jyrki Ali-Yrkkö, 2018. "The changing geography and ownership of value creation: evidence from mobile telecommunications," Industry and Innovation, Taylor & Francis Journals, vol. 25(7), pages 675-698, August.
    • Handle: RePEc:taf:indinn:v:25:y:2018:i:7:p:675-698
    DOI: 10.1080/13662716.2017.1329086
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    Cited by:

    1. Holmström, Harald & Kenney, Martin & Seppälä, Timo, 2021. "Global Supply Chains, Value Added and Production Intensity: Case Semiconductors," ETLA Reports 113, The Research Institute of the Finnish Economy.

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