Department of Political and Social Sciences at the Università di Pavia
Integration in global IT value chains does not necessarily improve innovation capacityRead more ›
Local sourcing in developing countries: The role of foreign direct investments and global value chains
The local sourcing of intermediate products is one the main channels for foreign direct investment (FDI) spillovers. This paper investigates whether and how participation and positioning in the global value chains (GVCs) of host countries is associated to local sourcing by foreign investors. Matching two firm-level data sets on 19 Sub-Saharan African countries and Vietnam to country-sector level measures of GVC involvement, we find that more intense GVC participation and upstream specialization are associated to a higher share of inputs sourced locally by foreign investors. These effects are larger in countries with stronger rule of law and better education.Read more ›
Innovation in global value chains
In this chapter, the authors focus on innovation in global value chains and on the role that such chains play in building and deepening capability. They also focus on the trajectories along which firms, located in developing countries, once inserted into global value chains acquire or lose innovation capability. To do so, they bring together the global value chains and innovation systems approaches. Their 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. They 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.Read more ›
Cross-border Knowledge Flows Through R&D FDI: Implications for Low-and Middle-income Countries.
R&D related foreign direct investments represent a powerful mechanism for cross-border knowledge sharing that can stimulate the process of technological catch-up. However, low-income countries and smaller middle-income countries remain largely excluded from this kind of global flows of knowledge. In this chapter, we discuss the motivations and implications of this type of FDI for low and middle income countries, building on a critical review of the existing literature and analyze the trajectory of R&D FDI during the period 2003-2017 by region and industry. The data is used as a point of departure to discuss potential policies specially tailored for low and middle income countries and their capacity to attract and anchor R&D related FDI for technological catch-up. The paper finalizes outlining a future research agenda.Read more ›