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Innovation in Global Value Chains

Author

Listed:
  • Lema, Rasmus

    (Aalborg University)

  • Pietrobelli, Carlo

    (UNU-MERIT, and University Roma Tre)

  • Rabellotti, Roberta

    (University of Pavia, and Aalborg University)

Abstract

Developing countries are faced with significant challenges related to building and deepening their innovation capabilities. In this chapter, we focus on innovation in global value chains and on the role that such chains play in building and deepening capability. We also focus on the trajectories along which firms, once inserted into global value chains and located in developing countries, acquire or lose innovation capability. To do so, we bring together the global value chains and innovation systems approaches. Our key arguments are that global value chains interact with innovation systems in multiple ways and that these interactions have important implications for the speed, depth, and overall quality of capability building in developing-country firms. We outline five innovation capability trajectories and show how capability building at the firm level interrelates with the various ways in which global value chains and innovation systems co-evolve.

Suggested Citation

  • Lema, Rasmus & Pietrobelli, Carlo & Rabellotti, Roberta, 2018. "Innovation in Global Value Chains," MERIT Working Papers 2018-038, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2018038
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    References listed on IDEAS

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    1. Altenburg, Tilman & Schmitz, Hubert & Stamm, Andreas, 2008. "Breakthrough China's and India's Transition from Production to Innovation," World Development, Elsevier, vol. 36(2), pages 325-344, February.
    2. Bell, Martin & Albu, Michael, 1999. "Knowledge Systems and Technological Dynamism in Industrial Clusters in Developing Countries," World Development, Elsevier, vol. 27(9), pages 1715-1734, September.
    3. Thomas Farole & Deborah Winkler, 2014. "Making Foreign Direct Investment Work for Sub-Saharan Africa : Local Spillovers and Competitiveness in Global Value Chains," World Bank Publications - Books, The World Bank Group, number 16390, December.
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    Cited by:

    1. Iizuka, Michiko & Pietrobelli, Carlo & Vargas, Fernando, 2019. "The Potential for innovation in mining value chains. Evidence from Latin America," MERIT Working Papers 2019-033, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. Islam, Mohammad Tarikul & Chadee, Doren, 2023. "Stuck at the bottom: Role of tacit and explicit knowledge on innovation of developing-country suppliers in global value chains," International Business Review, Elsevier, vol. 32(2).
    3. Amir Lebdioui & Keun Lee & Carlo Pietrobelli, 2021. "Local-foreign technology interface, resource-based development, and industrial policy: how Chile and Malaysia are escaping the middle-income trap," The Journal of Technology Transfer, Springer, vol. 46(3), pages 660-685, June.
    4. Nenci, Silvia & Fusacchia, Ilaria & Giunta, Anna & Montalbano, Pierluigi & Pietrobelli, Carlo, 2022. "Mapping global value chain participation and positioning in agriculture and food: stylised facts, empirical evidence and critical issues," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 11(2), July.
    5. Pietrobelli, Carlo, 2019. "Modern industrial policy in Latin America: Lessons from cluster development policies," MERIT Working Papers 2019-031, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    6. Ketan Reddy & Radeef Chundakkadan & Subash Sasidharan, 2021. "Firm innovation and global value chain participation," Small Business Economics, Springer, vol. 57(4), pages 1995-2015, December.
    7. Caliari, Thiago & Ribeiro, Leonardo Costa & Pietrobelli, Carlo & Vezzani, Antonio, 2023. "Global value chains and sectoral innovation systems: An analysis of the aerospace industry," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 36-48.
    8. Torres Mazzi, Caio, 2019. "Brazilian exporters and the rise of Global Value Chains: an empirical assessment," MERIT Working Papers 2019-014, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    9. F. Colozza & R. Boschma & A. Morrison & C. Pietrobelli, 2021. "The importance of global value chains and regional capabilities for the economic complexity of EU-regions," Papers in Evolutionary Economic Geography (PEEG) 2139, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Dec 2021.
    10. Tsakanikas, Aggelos & Caloghirou, Yannis & Dimas, Petros & Stamopoulos, Dimitrios, 2022. "Intangibles, innovation, and sector specialization in global value chains: A case study on the EU's and the UK's manufacturing industries," Technological Forecasting and Social Change, Elsevier, vol. 177(C).
    11. Tong Zhao & Zhijie Song & Tianjiao Li, 2018. "Effect of innovation capacity, production capacity and vertical specialization on innovation performance in China's electronic manufacturing: Analysis from the supply and demand sides," PLOS ONE, Public Library of Science, vol. 13(7), pages 1-23, July.
    12. Andrzej Cieślik & Jan Jakub Michałek & Krzysztof Szczygielski & Jacek Lewkowicz & Jerzy Mycielski, 2021. "Foreign Ownership and Within-MNEs GVC Participation as Determinants of Innovation Activities: A CIS-Based Firm-Level Analysis," Central European Journal of Economic Modelling and Econometrics, Central European Journal of Economic Modelling and Econometrics, vol. 13(2), pages 189-211, June.
    13. Anthony Goerzen & Simon Peter Iskander & Joerg Hofstetter, 2021. "The effect of institutional pressures on business-led interventions to improve social compliance among emerging market suppliers in global value chains," Journal of International Business Policy, Palgrave Macmillan, vol. 4(3), pages 347-367, September.

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    More about this item

    Keywords

    global value chains; innovation systems; technological capabilities; innovation policy; co-evolution;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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