Publication:
Massive Modular Ecosystems: A Framework for Understanding Complex Industries in the Digital Age

Simple item page
dc.contributor.authorThun, Eric
dc.contributor.authorTaglioni, Daria
dc.contributor.authorSturgeon, Timothy J.
dc.contributor.authorDallas, Mark P.
dc.date.accessioned2025-04-23T18:27:25Z
dc.date.available2025-04-23T18:27:25Z
dc.date.issued2025-04-23
dc.description.abstractThe rapid evolution of the global economy, driven by digitization and modularization, has outpaced existing theoretical tools. This paper proposes a unified analytical framework for understanding the complexity of digital industries through the lens of Massive Modular Ecosystems. To operationalize this concept, the paper develops a systematic methodology for mapping prevailing and alternative governance structures across interconnected, layered, and nested ecosystems. Synthesizing insights from the global value chain governance, modularity and standards, and business ecosystem literatures, the paper demonstrates how modular governance enables distributed innovation, while non-modular governance structures – including captive supply relationships, relational partnerships, and hierarchical control – support greater value capture and strategic control. The defining element of a Massive Modular Ecosystem is not that every relationship is purely modular, but that non-modular relationships operate in a “sea of modularity,” a context where modularity prevails. Using a case study of the mobile phone industry, the paper depicts a Massive Modular Ecosystem characterized by a dynamic mix of internalization and outsourcing, with a few dominant players in each sub-ecosystem but no dominant actor overall. The study explores the broader implications of Massive Modular Ecosystems, including their impact on market structure, technological innovation, and global-scale economic geography. Increasing geographic specialization and clustering of sub-ecosystems create strong interdependencies across countries, making aggressive policy interventions risky and potentially leading to unintended consequences. Efforts to build self-sufficient domestic industries may be impractical and costly, while attempts to decouple from Massive Modular Ecosystems can lead to exclusion from critical innovation networks and standard-setting processes. By providing an integrative analytical tool, this paper offers policymakers, business leaders, and scholars a systematic approach to navigating the complexities of modern digital industries.en
dc.identifierhttp://documents.worldbank.org/curated/en/099219104232540081
dc.identifier.doihttps://doi.org/10.1596/1813-9450-11106
dc.identifier.urihttps://hdl.handle.net/10986/43117
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC: World Bank
dc.relation.ispartofseriesPolicy Research Working Paper; 11106
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectINDUSTRIAL ORGANIZATION
dc.subjectINNOVATION
dc.subjectMODULARITY
dc.subjectPLATFORMS
dc.subjectSTANDARDS
dc.subjectGLOBAL VALUE CHAINS
dc.subjectBUSINESS ECOSYSTEMS
dc.subjectSOCIOECONOMIC MEGASTRUCTURES
dc.titleMassive Modular Ecosystemsen
dc.title.subtitleA Framework for Understanding Complex Industries in the Digital Ageen
dc.typeWorking Paper
dspace.entity.typePublication
okr.date.disclosure2025-04-23
okr.date.doiregistration2025-04-25T02:17:47.120786Z
okr.date.lastmodified2025-04-23T16:04:05Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099219104232540081
okr.guid099219104232540081
okr.identifier.docmidIDU-8956838b-3b5b-48a8-a2eb-b289973a24ba
okr.identifier.doi10.1596/1813-9450-11106
okr.identifier.externaldocumentum40008627
okr.identifier.internaldocumentum40008627
okr.identifier.reportWPS11106
okr.import.id7208
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttps://documents.worldbank.org/curated/en/099219104232540081/pdf/IDU-8956838b-3b5b-48a8-a2eb-b289973a24ba.pdfen
okr.region.geographicalWorld
okr.topicIndustry::Industrial Management
okr.topicIndustry::Industrial Economics
okr.topicScience and Technology Development::Technology Innovation
okr.topicIndustry::General Manufacturing
okr.unitDECRG: Trade & Intl. Integration (DECTI)
relation.isAuthorOfPublicationef13906b-18b9-5962-8425-18d99f82c093
relation.isAuthorOfPublication.latestForDiscoveryef13906b-18b9-5962-8425-18d99f82c093
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
Files
Original bundle
Now showing 1 - 2 of 2
Thumbnail Image
Name:
IDU-8956838b-3b5b-48a8-a2eb-b289973a24ba.pdf
Size:
5.75 MB
Format:
Adobe Portable Document Format
Download
No Thumbnail Available
Name:
IDU-8956838b-3b5b-48a8-a2eb-b289973a24ba.txt
Size:
181.79 KB
Format:
Plain Text
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Plain Text
Description:
Download
Collections
Policy Research Working Papers