Intense competition … but with whom & over what ?

Petri Rouvinen ETLA , The Research Institute of

the Finnish Economy

Japan Conference on Financial Institutions for Innovation and Development, Kyoto

Innovation and Competition in Global ICT30 July 2015, 11:15–12:45

Digi Glob.

7 CrisesEnvironment, Economic systems,Poverty, Health, Security, Food,

Energy/natural resources

Unpredictable Fast-Evolving Turbulent World

1011010111000010

3D

IoT

Nexus of Forces

Towards Industry/Technology Convergence

Source: Hernesniemi, Lammi, Ylä-Anttila & Rouvinen (ed.) 1996.Advantage Finland: The Future of Finnish Industries.

Taloustieto (ETLA B 113, Sitra 149).

I’ve seen the God…

… or is it the Devil?

January 2007Photo: v.gd/D1ZYvoNote: iPad in 2010.

Nexus of Forces & Tech Convergence opened a huge unmapped &

unconquered domain

Corporations

Systems/hardware

Specific solutions

Digital evolution

Consumers

Content/Services

Platforms/ecosystems

Digital revolution

Beijing, China Salo, Finland39% 41%

The assembly location –China versus Finland – makes little difference for Finnish Value Added !?

Source: Ali-Yrkkö, Rouvinen, Seppälä & Ylä-Anttila 2011 http://v.gd/oLoC2n

Value creation and capture often detached from the physical flows …

… also in manufactures value is often in services and other intangible aspects

Lessons of 40+ global value chain case studies:

Who creates/captures value?

• Desirable positions for an enterprise– Brand owner, orchestrator

– Interfacing with customers

– Gatekeeper in a chain

• Desirable positions for an individual– High-level ”supporting” service tasks

– Creation/management of intangible assets

Sowhat?

Defining the relevant market in a time-consistent manner often hard/impossible

Turmoil induced by digitalization & globalization will continue for some time

Current company positions / industry structures are by no means stable