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.
|Publisher||The Research Institute of the Finnish Economy|