Division of Labour and the Locus of Inventive Activity

Journal of Management and Governance - Tập 1 - Trang 123-140 - 1997
Ashish Arora1, Alfonso Gambardella2, Enzo Rullani3
1Heinz School, Carnegie Mellon University, Pittsburgh
2Istituto di Studi Aziendali, University of Urbino, Urbino, Italy
3Dipartimento di Economia Aziendale, University of Venice, Venice, Italy

Tóm tắt

This paper argues that modularity of knowledge andtechnologies has important implications for the locusof inventive activities. This is because modularityallows for a separation of the innovation process intwo main activities: The production of basic(standardised) modules, and their combination toproduce variants of technologies or product designsthat are better suited to the special needs ofindividual users or markets. This gives rise to adivision of labour whereby the production of moduleswill be performed by specialised upstream suppliers(who enjoy economies of scale), while the combinationof modules will be performed by firms furtherdownstream or by the users themselves. We then suggestthat this pattern can explain a variety of phenomenasuch as why users ’’co-produce‘‘ their innovations, andhow small regions can support innovative activitydespite the apparent efficiency advantage of largerregions.

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