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Technological Innovation, Global Value Chain Participation, and the Competitiveness of High-Tech Manufacturing: A Mediation-Moderation Analysis Across 30 Economies (2005–2024)

Author

Listed:
  • Renato Banze

    (School of Business, Anhui University of Technology, Ma'anshan 243032)

Abstract

Technological innovation and participation in Global Value Chains (GVCs) jointly shape the competitiveness of high-tech manufacturing in an era defined by digital transformation, technological convergence, and the reorganization of global production networks. This study develops and empirically validates a comprehensive analytical framework linking technological innovation, GVC integration, and industrial competitiveness, and embeds the analysis within the broader agenda of sustainable industrial transformation. Drawing on a balanced panel of 30 economies from 2005 to 2024, we apply two-way fixed-effects regressions, mediation tests, and moderation analyses to examine both the direct and indirect pathways through which innovation influences competitiveness. The findings show that technological innovation exerts a positive and significant effect on high-tech manufacturing competitiveness by raising productivity, lifting product sophistication, and improving cost efficiency. GVC participation enhances competitiveness directly and partially mediates the innovation–competitiveness relationship by facilitating technology transfer, international knowledge diffusion, and functional upgrading toward higher-value segments. Institutional quality and absorptive capacity moderate these effects, amplifying the returns to innovation where governance and human-capital systems are stronger. Marked structural heterogeneity emerges between advanced and emerging economies: innovation yields higher marginal benefits when embedded in mature institutions, while GVC integration is the principal learning channel for catching-up economies. Four firm-level case studies (Intel, Huawei, Samsung, Siemens) corroborate these mechanisms. The results offer strategic guidance for policymakers seeking to strengthen innovation ecosystems, deepen GVC engagement, and sustain competitiveness in an evolving digital and sustainable industrial landscape.

Suggested Citation

  • Renato Banze, 2026. "Technological Innovation, Global Value Chain Participation, and the Competitiveness of High-Tech Manufacturing: A Mediation-Moderation Analysis Across 30 Economies (2005–2024)," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 10(15), pages 574-591, January.
    • Handle: RePEc:bcp:journl:v:10:y:2026:i:15:p:574-591
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    References listed on IDEAS

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