Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Working Knowledge
Business Research for Business Leaders
  • Browse All Articles
  • Popular Articles
  • Cold Call Podcast
  • Managing the Future of Work Podcast
  • About Us
  • Book
  • Leadership
  • Marketing
  • Finance
  • Management
  • Entrepreneurship
  • All Topics...
  • Topics
    • COVID-19
    • Entrepreneurship
    • Finance
    • Gender
    • Globalization
    • Leadership
    • Management
    • Negotiation
    • Social Enterprise
    • Strategy
  • Sections
    • Book
    • Podcasts
    • HBS Case
    • In Practice
    • Lessons from the Classroom
    • Op-Ed
    • Research & Ideas
    • Research Event
    • Sharpening Your Skills
    • What Do You Think?
    • Working Paper Summaries
  • Browse All
    The Supply Chain Economy: A New Framework for Understanding Innovation and Services
    19 Feb 2018Working Paper Summaries

    The Supply Chain Economy: A New Framework for Understanding Innovation and Services

    by Mercedes Delgado and Karen G. Mills
    This study shows that a large and dynamic supply chain economy plays a crucial role in innovation and in the creation of well-paid jobs. Traded service suppliers are particularly important. Policies that help suppliers access skilled labor, buyers, and capital could be beneficial for fostering innovation and economic growth.
    LinkedIn
    Email

    Author Abstract

    The debate in economic policymaking about the drivers of innovation and job creation has long been centered on manufacturing versus services. The predominant view is that manufacturing drives innovation, wages, and growth, and that services provide less innovation and lower-wage jobs. We propose an alternative framework that focuses on the suppliers of goods and services to businesses and the government: the "supply chain economy." Our research shows that by categorizing the economy into supply chain versus business-to-consumer industries, a different picture emerges. The supply chain industries are a distinct category of the economy that is important to innovation and well-paid jobs. In particular, the supply chain services industries have the highest wages and intensity of STEM jobs in the U.S., and have experienced rapid growth in employment and wages in the last two decades. However, supply chain industries face unique challenges that may require new policy solutions from the public and private sector. Critical initiatives could focus on improving their access to skilled labor, buyers, and capital.

    Paper Information

    • Full Working Paper Text
    • Working Paper Publication Date:
    • HBS Working Paper Number: HBS Working Paper #18-071
    • Faculty Unit(s): General Management; Entrepreneurial Management
      Trending
        • 08 Sep 2022
        • Book

        Gen Xers and Millennials, It’s Time To Lead. Are You Ready?

        • 28 Mar 2023
        • Research & Ideas

        The FDA’s Speedy Drug Approvals Are Safe: A Win-Win for Patients and Pharma Innovation

        • 25 Jan 2022
        • Research & Ideas

        More Proof That Money Can Buy Happiness (or a Life with Less Stress)

        • 25 Feb 2019
        • Research & Ideas

        How Gender Stereotypes Kill a Woman’s Self-Confidence

        • 14 Mar 2023
        • In Practice

        What Does the Failure of Silicon Valley Bank Say About the State of Finance?

    Karen Mills
    Karen Mills
    Senior Fellow
    Contact
    Send an email
    → More Articles
    Find Related Articles
    • Supply Chain
    • Economy
    • United States

    Sign up for our weekly newsletter

    Interested in improving your business? Learn about fresh research and ideas from Harvard Business School faculty.
    This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
    ǁ
    Campus Map
    Harvard Business School Working Knowledge
    Baker Library | Bloomberg Center
    Soldiers Field
    Boston, MA 02163
    Email: Editor-in-Chief
    →Map & Directions
    →More Contact Information
    • Make a Gift
    • Site Map
    • Jobs
    • Harvard University
    • Trademarks
    • Policies
    • Accessibility
    • Digital Accessibility
    Copyright © President & Fellows of Harvard College