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The Business of Systems Integration$
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Andrea Prencipe, Andrew Davies, and Michael Hobday

Print publication date: 2005

Print ISBN-13: 9780199263233

Published to Oxford Scholarship Online: September 2007

DOI: 10.1093/acprof:oso/9780199263233.001.0001

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The Economics of Systems Integration

The Economics of Systems Integration

Towards an Evolutionary Interpretation

Chapter:
(p.95) 6 The Economics of Systems Integration
Source:
The Business of Systems Integration
Author(s):

Giovanni Dosi (Contributor Webpage)

Mike Hobday (Contributor Webpage)

Luigi Marengo

Andrea Prencipe (Contributor Webpage)

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199263233.003.0006

This chapter explores some theoretical elements of the economics of systems integration (and disintegration) by placing the idea of systems integration within the context of evolutionary economics. It argues that systems integrators (as firms) and systems integration (as a key capability within and across firms) perform a central function as the visible hand of much modern industrial activity, especially in complex products and systems. The latter includes a significant subset of capital goods, such as mobile communication systems, military systems, corporate information technology networks, train engines, aircraft, intelligent buildings, air traffic control systems, and tailored software packages.

Keywords:   evolutionary economics, capital goods, visible hand, invisible hand, outsourcing

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