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Global Value Chains and Technological Capabilities: A Framework to Study Industrial Innovation in Developing Countries

Author

Listed:
  • Andrea Morrison

    (Department of Economics and Quantitative Methods, Università del Piemonte Orientale, Italy and CESPRI, Università Bocconi, Italy.)

  • Carlo Pietrobelli

    (CREI, Università di Roma 3, Italy.)

  • Roberta Rabellotti

    (Department of Economics and Quantitative Methods, Università del Piemonte Orientale, Italy.)

Abstract

This paper presents a critical review of the Global Value Chain literature in light of the “Technological Capabilities” approach to innovation in LDCs. Participation in GVC is beneficial for firms in LDCs, which are bound to source technology internationally. However, the issues of learning and technological efforts at the firm-level remain largely uncovered by the GVC literature. We propose a shift in the empirical and theoretical agenda, arguing that research should focus on the endogenous process of technological capability development, on the specific firm-level efforts and on the mechanisms allowing knowledge to flow within and between different global value chains.

Suggested Citation

  • 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.
  • Handle: RePEc:cri:cespri:wp192
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Franco Malerba & Richard R. Nelson (ed.), 2012. "Economic Development as a Learning Process," Books, Edward Elgar Publishing, number 14616, April.
    2. Franco Malerba & Richard R. Nelson, 2012. "Introduction," Chapters,in: Economic Development as a Learning Process, chapter 1 Edward Elgar Publishing.
    3. Franco Malerba & Richard R. Nelson, 2012. "Conclusions," Chapters,in: Economic Development as a Learning Process, chapter 7 Edward Elgar Publishing.
    4. Lema, Rasmus, 2010. "Adoption of Open Business Models in the West and Innovation in India's Software Industry," MPRA Paper 49589, University Library of Munich, Germany.
    5. 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.
    6. Pietrobelli, Carlo & Rabellotti, Roberta, 2011. "Global Value Chains Meet Innovation Systems: Are There Learning Opportunities for Developing Countries?," World Development, Elsevier, vol. 39(7), pages 1261-1269, July.
    7. Kosacoff, Bernardo & López, Andrés & Pedrazzoli, Mara, 2008. "Trade, investment and fragmentation of the global market: is Latin America lagging behind?," Estudios y Perspectivas – Oficina de la CEPAL en Buenos Aires 39, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    8. Ciravegna, Luciano, 2011. "Technological learning in the Silicon Valleys of Latin America," MPRA Paper 36832, University Library of Munich, Germany.
    9. Esther K. Ishengoma & Robert Kappel, 2008. "Business Constraints and Growth Potential of Micro and Small Manufacturing Enterprises in Uganda," GIGA Working Paper Series 78, GIGA German Institute of Global and Area Studies.

    More about this item

    Keywords

    global value chains; technological capabilities; learning; innovation; LDCs.;

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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