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Deepening or delinking? Innovative capacity and global value chain participation in the IT industry
[Breakthrough? China’s and India’s transition from production to innovation]

Author

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  • Rasmus Lema
  • Carlo Pietrobelli
  • Roberta Rabellotti
  • Antonio Vezzani

Abstract

Innovation trajectories in global value chains (GVCs) can take differentiated pathways. In this article, we address the question: do stylized trajectories emerge from the analysis of countries’ relative innovative capacity (IC) and GVC participation? We draw explorative insights from a cluster analysis of 45 countries on the two subsectors of the information technology industry: hardware and software. Our analysis uncovers remarkable differences between hardware and software and across countries. We identify different trajectories and discuss the sectoral specificities that contribute explaining their existence. The association between the strengthening of IC and a deeper insertion in GVCs applies only to a handful of countries and only in the software subsector. The specificity of this association raises questions for future research on innovation trajectories in GVCs.

Suggested Citation

  • Rasmus Lema & Carlo Pietrobelli & Roberta Rabellotti & Antonio Vezzani, 2021. "Deepening or delinking? Innovative capacity and global value chain participation in the IT industry [Breakthrough? China’s and India’s transition from production to innovation]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 30(4), pages 1065-1083.
    • Handle: RePEc:oup:indcch:v:30:y:2021:i:4:p:1065-1083.
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    File URL: http://hdl.handle.net/10.1093/icc/dtab035
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    Cited by:

    1. Xu, Lu & Jing, Jing & Wu, Chenyu, 2024. "Impact of financial development on the position in global value chain: An analysis from the perspective of R&D intensity," Journal of Asian Economics, Elsevier, vol. 92(C).
    2. 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.
    3. 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.

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