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Introduction
Innovation is held to be the key to U.S. competitiveness, but there is little understanding of who captures the value from a successful innovation. This paper is a preliminary report on a study that will answer the question for specific examples of innovation.
Here, we present a framework for analysis and use that framework to look at one member of Apple’s iPod family, part of a thriving ecosystem that has upended business models across the consumer electronics, computer, and entertainment industries. The iPod is a perfect example of a globally innovated product, combining technologies from the U.S., Japan and a number of Asian countries.
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Conclusions
So what can we say about who captures the value of innovation, based on this initial analysis? First, the biggest winner is Apple, an American company, with predominantly American employees and stockholders who reap the benefits. If the iPod had been made by Sony or Samsung, the value to the U.S. would be considerably less.
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