Chapter

The decision to make or buy a critical technology: semiconductors at Ericsson, 1980–2010

Henrik Glimstedt, Donald Bratt and Magnus P. Karlsson

in Management Innovation

Published in print March 2012 | ISBN: 9780199695683
Published online May 2012 | e-ISBN: 9780191738265 | DOI: http://dx.doi.org/10.1093/acprof:oso/9780199695683.003.0007
The decision to make or buy a critical technology: semiconductors at Ericsson, 1980–2010

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This chapter considers the decisions to outsource and reintegrate the development of critical and innovative technologies. It documents a historical sequence of choices made by strategists within a high-tech company, Ericsson. The evidence discussed indicates that a broad range of different factors were taken into consideration and that the influential people made a point of running different kinds approaches to outsourcing in parallel. Reintegration occurred when the structures put in place by collaborating firms did not sustain innovation.

Keywords: mobile devices; vertical integration and reintegration; mobile platform strategy; platform architecture; semiconductor design; modularity

Chapter.  13790 words.  Illustrated.

Subjects: Innovation

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