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Global value chains and sectoral innovation systems: An analysis of the aerospace industry

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  • Caliari, Thiago
  • Ribeiro, Leonardo Costa
  • Pietrobelli, Carlo
  • Vezzani, Antonio

Abstract

This paper explores the link between a country's position in the aerospace global value chain (GVC) and the strength of its innovation system. Countries’ participation to different stages of the GVC is proxied using export data at a narrow product level, while innovation system indicators are built from US patents. The analysis covers the 2007–2018 period for 38 countries. Our results highlight a relationship between the strength of the innovation system and a country's participation and specialization in different stages of the aerospace GVC: varied and pervasive (quality) rather than more intensive (quantity) innovation systems are associated with a stronger presence in higher value-added stages of the value chain. These results highlight the importance of improving an innovation system targeting the development of a differentiated knowledge base and fostering the integration of different actors to sustain the aerospace industry and facilitate upgrading within the value chain.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:streco:v:65:y:2023:i:c:p:36-48
    DOI: 10.1016/j.strueco.2023.02.004
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    More about this item

    Keywords

    Aerospace industry; Innovation system; GVC; Trade competitiveness;
    All these keywords.

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment

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