Global Value Chains Meet Innovation Systems: Are There Learning Opportunities for Developing Countries?
Summary The Innovation Systems (IS) literature tends not to emphasize the crucial impact of international knowledge and innovation exchange and collaboration through, for example, inter-firm and intra-firm networks and Global Value Chains (GVC). In developing countries this aspect is crucial, with integration in GVC playing a growing and very important role in accessing knowledge and enhancing learning and innovation. However, there is no agreement in the literature about how innovation systems and GVC interact, and how this interaction is likely to affect enterprise learning. Three main conclusions emerge from the theoretical analysis and evidence presented in this paper. First, learning mechanisms can vary widely within the various forms of governance of GVC: they can be the result of the pressure to achieve international standards, or be facilitated by direct involvement of the value chain leaders when the suppliers' competence is low and the risk of failure to comply is high. When the competences of the actors in the value chain are complementary, learning is mutual and is based on intense face-to-face interactions. Second, as we "open" IS to foreign sources of knowledge, the relationship between GVCs and IS is nonlinear and endogenous, and mutually affecting. On the basis of our model, we would expect a well-structured and efficient innovation system would help to reduce transaction complexity and enable transactions based on relational forms of GVC governance. Third, the internal governance of GVC is a dynamic phenomenon that is subject to continuous adjustments and changes, and the nature of the IS affects this co-evolution.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hubert Schmitz & Simone Strambach, 2009. "The organisational decomposition of innovation and global distribution of innovative activities: insights and research agenda," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 2(4), pages 231-249.
- Neil M. Coe & Neil Wrigley, 2007. "Host economy impacts of transnational retail: the research agenda," Journal of Economic Geography, Oxford University Press, vol. 7(4), pages 341-371, July.
- Martin Hess & Henry Wai-Chung Yeung, 2006. "Whither global production networks in economic geography? Past, present, and future," Environment and Planning A, Pion Ltd, London, vol. 38(7), pages 1193-1204, July.
- Dieter Ernst, 2002.
"Global production networks and the changing geography of innovation systems. Implications for developing countries,"
Economics of Innovation and New Technology,
Taylor & Francis Journals, vol. 11(6), pages 497-523.
- Dieter Ernst, 2000. "Global Production Networks and the Changing Geography of Innovation Systems: Implications for Developing Countries," Economics Study Area Working Papers 09, East-West Center, Economics Study Area.
- Timothy J. Sturgeon, 2003. "What really goes on in Silicon Valley? Spatial clustering and dispersal in modular production networks," Journal of Economic Geography, Oxford University Press, vol. 3(2), pages 199-225, April.
- Joachim Wagner, 2007. "Exports and Productivity: A Survey of the Evidence from Firm-level Data," The World Economy, Wiley Blackwell, vol. 30(1), pages 60-82, 01.
- Joachim Wagner, 2005. "Exports and Productivity: A survey of the evidence from firm level data," Working Paper Series in Economics 4, University of Lüneburg, Institute of Economics.
- Wagner, Joachim, 2005. "Exports and Productivity : A survey of the evidence from firm level data," HWWA Discussion Papers 319, Hamburg Institute of International Economics (HWWA).
- Joachim Wagner, 2005. "Exports and Productivity: A Survey of the Evidence fro Firm Level Data," International Trade 0504005, EconWPA.
- 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.
- Carlo Pietrobelli, 2008. "Global value chains in the least developed countries of the world: threats and opportunities for local producers," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 1(4), pages 459-481.
- Tewari, Meenu, 1999. "Successful Adjustment in Indian Industry: the Case of Ludhiana's Woolen Knitwear Cluster," World Development, Elsevier, vol. 27(9), pages 1651-1671, September.
- Paolo Guerrieri & Simona Iammarino & Carlo Pietrobelli (ed.), 2001. "The Global Challenge to Industrial Districts," Books, Edward Elgar Publishing, number 2422, July.
- 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.
- Michiko Iizuka, 2009. "‘Low-tech’ industry: a new path for development? The case of the salmon farming industry in Chile," Chapters,in: Sectoral Systems of Innovation and Production in Developing Countries, chapter 8 Edward Elgar Publishing.
- Giuliani, Elisa & Pietrobelli, Carlo & Rabellotti, Roberta, 2005. "Upgrading in Global Value Chains: Lessons from Latin American Clusters," World Development, Elsevier, vol. 33(4), pages 549-573, April.
- Elisa Giuliani & Carlo Pietrobelli & Roberta Rabellotti, 2004. "Upgrading in global value chains: lessons from latin american clusters," Working Papers 72, SEMEQ Department - Faculty of Economics - University of Eastern Piedmont.
- Freeman, Chris, 1995. "The 'National System of Innovation' in Historical Perspective," Cambridge Journal of Economics, Oxford University Press, vol. 19(1), pages 5-24, February.
- John Humphrey & Hubert Schmitz, 2002. "How does insertion in global value chains affect upgrading in industrial clusters?," Regional Studies, Taylor & Francis Journals, vol. 36(9), pages 1017-1027.
- Ponte, Stefano & Ewert, Joachim, 2009. "Corrigendum to "Which Way is ''Up" in Upgrading? Trajectories of Change in the Value Chain for South African Wine" [World Development 37 (2009) 1637-1650]," World Development, Elsevier, vol. 37(12), pages 1964-1964, December.
- Sanjaya Lall & Carlo Pietrobelli, 2002. "Failing to Compete," Books, Edward Elgar Publishing, number 2360, July.
- Saxenian, AnnaLee & Hsu, Jinn-Yuh, 2001. "The Silicon Valley-Hsinchu Connection: Technical Communities and Industrial Upgrading," Industrial and Corporate Change, Oxford University Press, vol. 10(4), pages 893-920, December.
- Carlo Pietrobelli & Federica Saliola, 2007. "Power Relationships along the Value Chain: Multinational Firms, Global Buyers, and Local Suppliers' Performance," Working Papers 0702, CREI Università degli Studi Roma Tre, revised Jan 2007.
- Rabellotti, Roberta, 1999. "Recovery of a Mexican Cluster: Devaluation Bonanza or Collective Efficiency?," World Development, Elsevier, vol. 27(9), pages 1571-1585, September.
- Bengt-åke Lundvall & Jan Vang & K.J. Joseph, 2009. "Innovation System Research and Developing Countries," Chapters,in: Handbook of Innovation Systems and Developing Countries, chapter 1 Edward Elgar Publishing.
- Simone Strambach, 2010. "Knowledge-Intensive Business Services (KIBS)," Chapters,in: Platforms of Innovation, chapter 7 Edward Elgar Publishing.
- Sako, Mari & Helper, Susan, 1998. "Determinants of trust in supplier relations: Evidence from the automotive industry in Japan and the United States," Journal of Economic Behavior & Organization, Elsevier, vol. 34(3), pages 387-417, March.
- Carlsson, Bo, 2006. "Internationalization of innovation systems: A survey of the literature," Research Policy, Elsevier, vol. 35(1), pages 56-67, February.
- R. Kaplinsky, 2000. "Globalisation and Unequalisation: What Can Be Learned from Value Chain Analysis?," Journal of Development Studies, Taylor & Francis Journals, vol. 37(2), pages 117-146.
- Intarakumnerd, Patarapong & Chairatana, Pun-arj & Tangchitpiboon, Tipawan, 2002. "National innovation system in less successful developing countries: the case of Thailand," Research Policy, Elsevier, vol. 31(8-9), pages 1445-1457, December.
- Andrea Morrison & Carlo Pietrobelli & Roberta Rabellotti, 2006. "Global Value Chains and Technological Capabilities: A Framework to Study Industrial Innovation in Developing Countries," KITeS Working Papers 192, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Dec 2006.
- Metcalfe, J S, 1995. "Technology Systems and Technology Policy in an Evolutionary Framework," Cambridge Journal of Economics, Oxford University Press, vol. 19(1), pages 25-46, February.
- Gereffi, Gary, 1999. "International trade and industrial upgrading in the apparel commodity chain," Journal of International Economics, Elsevier, vol. 48(1), pages 37-70, June.
- Ponte, Stefano & Ewert, Joachim, 2009. "Which Way is "Up" in Upgrading? Trajectories of Change in the Value Chain for South African Wine," World Development, Elsevier, vol. 37(10), pages 1637-1650, October. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:eee:wdevel:v:39:y:2011:i:7:p:1261-1269. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.