eThesis - School of Business electronic theses

Objectives: This research examines the value chain of a Finnish technology product innovation. The aim is to explain how its value added is created and distributed among value chain participants and geographical regions. The study is part of a larger research project conducted by ETLA (The Research Institute of the Finnish Economy). The project intends to analyze similar cases in different industries with the aim to understand the role that Finnish companies have in global value chains.

Research methods: This is a qualitative single case study. In the thesis both qualitative and quantitative data is used in order to determine the value added distribution among chain participants and regions as well as to explain the factors influencing the distribution. Data was obtained through semi-structured interviews, company information and third-party databases.

Results: The results show a large value added creation by the analyzed firm and the country of innovation. The innovative firm is able to create this large share of value added by having tight innovation ownership and by participation in high value added activities such as design, R&D and the provision of services of different kinds. On the other hand, suppliers involved in the manufacturing and assembly of the product create a relatively small share of the total value added.