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Innovation in Global Value Chains

Author

Listed:
  • Lema, Rasmus

    () (Aalborg University)

  • Pietrobelli, Carlo

    () (UNU-MERIT, and University Roma Tre)

  • Rabellotti, Roberta

    () (University of Pavia, and Aalborg University)

Abstract

Developing countries are faced with significant challenges related to building and deepening their innovation capabilities. In this chapter, we focus on innovation in global value chains and on the role that such chains play in building and deepening capability. We also focus on the trajectories along which firms, once inserted into global value chains and located in developing countries, acquire or lose innovation capability. To do so, we bring together the global value chains and innovation systems approaches. Our key arguments are that global value chains interact with innovation systems in multiple ways and that these interactions have important implications for the speed, depth, and overall quality of capability building in developing-country firms. We outline five innovation capability trajectories and show how capability building at the firm level interrelates with the various ways in which global value chains and innovation systems co-evolve.

Suggested Citation

  • Lema, Rasmus & Pietrobelli, Carlo & Rabellotti, Roberta, 2018. "Innovation in Global Value Chains," MERIT Working Papers 2018-038, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2018038
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    File URL: https://www.merit.unu.edu/publications/wppdf/2018/wp2018-038.pdf
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    References listed on IDEAS

    as
    1. 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.
    2. Thomas Farole & Deborah Winkler, 2014. "Making Foreign Direct Investment Work for Sub-Saharan Africa : Local Spillovers and Competitiveness in Global Value Chains," World Bank Publications, The World Bank, number 16390, June.
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    Cited by:

    1. Iizuka, Michiko & Pietrobelli, Carlo & Vargas, Fernando, 2019. "The Potential for innovation in mining value chains. Evidence from Latin America," MERIT Working Papers 2019-033, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. Lebdioui, Amir & Lee, Keun & Pietrobelli, Carlo, 2020. "Local-foreign technology interface, resource-based development, and industrial policy: how Chile and Malaysia are escaping the middle-income trap," LSE Research Online Documents on Economics 105056, London School of Economics and Political Science, LSE Library.

    More about this item

    Keywords

    global value chains; innovation systems; technological capabilities; innovation policy; co-evolution;

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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