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Production in the Innovation Economy$
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Richard M. Locke and Rachel L. Wellhausen

Print publication date: 2014

Print ISBN-13: 9780262019927

Published to MIT Press Scholarship Online: May 2014

DOI: 10.7551/mitpress/9780262019927.001.0001

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Sustaining Global Competitiveness in the Provision of Complex Product Systems: The Case of Civilian Nuclear Power Technology

Sustaining Global Competitiveness in the Provision of Complex Product Systems: The Case of Civilian Nuclear Power Technology

Chapter:
(p.175) 7 Sustaining Global Competitiveness in the Provision of Complex Product Systems: The Case of Civilian Nuclear Power Technology
Source:
Production in the Innovation Economy
Author(s):

Florian Metzler

Edward S. Steinfeld

Publisher:
The MIT Press
DOI:10.7551/mitpress/9780262019927.003.0007

This chapter focuses on the production of “complex product systems,” and, in particular, large-scale nuclear power plants that are produced and deployed on a one-off basis. The authors examine the commercial capabilities needed to design and deploy these product systems. Despite expectations to the contrary, many of the most critical capabilities actually do not move from the innovating firm/nation to the place of purchase or deployment. Procuring nations can gain knowledge to manufacture heavy components or construct systems, but they are unable to force the transfer of system design and system integration capabilities. This means that Western firms’ design and integration capabilities are often enhanced rather than undermined by the outsourcing of lower-level design work and component production.

Keywords:   China, Nuclear industry, Complex product systems, Outsourcing, Innovation

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