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Does value chain participation facilitate the adoption of industry 4.0 technologies in developing countries?

Author

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  • Delera, Michele

    (UNU-MERIT, Maastricht University)

  • Pietrobelli, carlo

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

  • Calza, Elisa

    (UNU-MERIT, Maastricht University, and UNIDO)

  • Lavopa, Alejandro

    (UNIDO)

Abstract

The adoption of new technology is a key driver of firm performance and economic development. In this paper, we develop a framework for the firm-level analysis of the adoption of digital technology in developing economies. We investigate whether firms' participation to global value chains (GVCs) can facilitate the adoption of digital technologies. Using a novel database on the adoption of different generations of technology by manufacturing firms in Ghana, Vietnam, and Thailand, we document that the adoption of Industry 4.0 technologies remains extremely limited. We also find that firms' participation to GVCs is an important driver of digital technology adoption, and that adoption is positively associated with firm-level performance.

Suggested Citation

  • Delera, Michele & Pietrobelli, carlo & Calza, Elisa & Lavopa, Alejandro, 2020. "Does value chain participation facilitate the adoption of industry 4.0 technologies in developing countries?," MERIT Working Papers 2020-046, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2020046
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    5. Calza, Elisa & Lavopa, Alejandro & Ligia Zagato, 2022. "Advanced digital technologies and industrial resilience during the COVID-19 pandemic: A firm-level perspective," MERIT Working Papers 2022-008, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
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    Keywords

    Value Chain; GVCs; Industry 4.0; Technology adoption; Economic development; Capabilities;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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