Chapter

Specialization and Systems Integration

Keith Pavitt

in The Business of Systems Integration

Published in print November 2003 | ISBN: 9780199263226
Published online January 2005 | e-ISBN: 9780191718830 | DOI: http://dx.doi.org/10.1093/0199263221.003.0005
Specialization and Systems Integration

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Argues that the Systems Integration firms are progressively replacing the large, established manufacturing firm, described by Penrose and Chandler, as the major motor of technical change in advanced, high‐wage countries. This shift reflects in part the unexpected difficulties faced by large industrial firms in exploiting new technological opportunities. It also reflects the following combined effects of advances in IT and globalisation: the acceleration of offshore manufacturing, facilitated by improvements in monitoring and control, in modular interfaces, and in the transmission of codified skills; modularity; digitally‐based systems.

Keywords: co‐ordination of innovation; information and communication technology; IT enabled innovation; outsourcing; systems integration; technological change

Chapter.  5555 words. 

Subjects: Economic Systems

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