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The Role of Innovation in Upgrading in Global Value Chains

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  • Hyelin Choi
  • Semin Kim
  • Taehwan Jung

Abstract

We examine the role of innovative efforts in industries from the perspective of global value chains (GVCs). We set up a simple model and empirically test it using patent and bilateral export decomposition data. The model shows that innovative activities assumed to decrease the cost of conducting high-skilled tasks can upgrade the position of the industry in GVCs. This is also supported by data on patents and GVC-related data from the OECD and the Asian Development Bank. The empirical results reveal that a higher number of patent applications are closely related to more production of intermediate goods rather than assembly.

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  • Hyelin Choi & Semin Kim & Taehwan Jung, 2019. "The Role of Innovation in Upgrading in Global Value Chains," Global Economic Review, Taylor & Francis Journals, vol. 48(3), pages 273-283, July.
    • Handle: RePEc:taf:glecrv:v:48:y:2019:i:3:p:273-283
    DOI: 10.1080/1226508X.2019.1636703
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    Cited by:

    1. Marek Pekarčík & Júlia Ďurčová & Jozef Glova, 2022. "Intangible ICT and Their Importance within Global Value Chains: An Empirical Analysis Based on Longitudinal Data Regression," Mathematics, MDPI, vol. 10(7), pages 1-14, April.

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