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

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  • Ding, Ke
  • Hioki, Shiro

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.

Suggested Citation

  • Ding, Ke & Hioki, Shiro, 2018. "The role of a technological platform in facilitating innovation in the global value chain : a case study of China's mobile phone industry," IDE Discussion Papers 692, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper692
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    References listed on IDEAS

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    Cited by:

    1. Junli Shi & Tingdong Wang, 2022. "The Siphon Effect of Consumption End on Production End in the Value Chain under the Data Factor Flow: Evidence from the Regional Comprehensive Economic Partnership Region," Sustainability, MDPI, vol. 14(21), pages 1-22, October.

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    More about this item

    Keywords

    China; Telephone; Technological innovations; Technological platform; Modularity; Systemic innovation; Revenue-sharing contract;
    All these keywords.

    JEL classification:

    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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