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Innovation and upgrading in global production networks

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  • Dev Nathan
  • Sandip Sarkar

Abstract

This paper deals with the role of innovation in upgrading within global production networks (GPNs). Because of the distribution of production segments across firms and countries, there is also a distribution of production knowledge. The paper looks at some ways of upgrading by developing economy firms – the roles of distributed knowledge, reverse innovation and new types of innovation, based on frugal engineering in emerging economies. Process changes could also be innovation, though, unlike product innovations, they are easily copied and spread. The paper points out the limits of current reverse innovation and also asks whether the separation of manufacturing from design has increased the speed of innovation. Before concluding, the paper looks at innovation in terms of the ‘adjacent possible’ in evolutionary analysis.

Suggested Citation

  • Dev Nathan & Sandip Sarkar, 2013. "Innovation and upgrading in global production networks," Global Development Institute Working Paper Series ctg-2013-23, GDI, The University of Manchester.
    • Handle: RePEc:bwp:bwppap:ctg-2013-23
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    References listed on IDEAS

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    Cited by:

    1. Lorenzo Cresti & Maria Enrica Virgillito, 2023. "Weak sectors and weak ties? Labour dependence and asymmetric positioning in GVCs," LEM Papers Series 2023/10, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    2. Bhushan Praveen Jangam & Badri Narayan Rath, 2021. "Does global value chain participation enhance domestic value‐added in exports? Evidence from emerging market economies," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(2), pages 1681-1694, April.

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