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Technological upgrading in global value chains and clusters and their contribution to sustaining economic growth in low and middle income economies

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  • Kaplinsky, Raphael

    (UNU-MERIT)

Abstract

This paper begins with a discussion of the role played by upgrading in the promotion of sustainable growth. Upgrading is discussed in two different contexts, that of industrial clusters and that of global value chains (GVCs). Drawing on global and African experiences, the paper addresses the upgrading agenda required to enable dynamic clusters to meet both domestic needs and progressively also needs in external markets. In the discussion of value chains, the paper distinguishes between vertically specialised and additive GVCs and shows how the upgrading agenda necessarily varies between these two families of GVCs. The paper concludes by briefly discussing two issues. The first is to distinguish between the upgrading agenda which is essential for sustaining economic growth and that which addresses the inclusivity (and thus sustainability) of the growth path. The second addresses the circumstances in which it may be possible to pursue these varied upgrading strategies simultaneously.

Suggested Citation

  • Kaplinsky, Raphael, 2015. "Technological upgrading in global value chains and clusters and their contribution to sustaining economic growth in low and middle income economies," MERIT Working Papers 2015-027, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2015027
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    File URL: https://www.merit.unu.edu/publications/wppdf/2015/wp2015-027.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Global Value Chains; GVC; Industrial Clusters; Upgrading; Africa; Additive Value Chains; Vertically Specialised Value Chains;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F60 - International Economics - - Economic Impacts of Globalization - - - General

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