Who Captures Value in Digital Services?

Matias Kalm, Timo Seppälä, Jyrki Ali-Yrkkö

Research output: Working paperDiscussion paperProfessional

Abstract

In this study, we explore who creates and captures value in digital services by analyzing four such services. Our results show that there are notable variations in both value creation and value capture between the services. Similar variations are also observed in the geographical distribution of value added. The study also highlights variations in economies of scale in digital services. In some services, there are almost no variable costs, and hence, the economies of scale are very high. In other services, the economies of scale are significantly smaller. The difference in economies of scale between services partially arises because a physical product is delivered in conjunction with the digital service for some services.
Original languageEnglish
PublisherETLA - The Research Institute of the Finnish Economy
Number of pages8
Publication statusPublished - 30 Jun 2014
MoE publication typeD4 Published development or research report or study

Publication series

NameETLA Brief
PublisherThe Research Institute of the Finnish Economy
No.27
ISSN (Electronic)2323-2463

Keywords

  • Value chain
  • Value added

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