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

This paper presents a critical review of the global value chain (GVC) literature in light of the "technological capabilities" approach to innovation in less-developed countries (LDCs). Participation in GVC is beneficial for firms in LDCs, which are bound to source technology internationall...

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Bibliographic Details
Published in:Oxford development studies 2008-03, Vol.36 (1), p.39-58
Main Authors: Morrison, Andrea, Pietrobelli, Carlo, Rabellotti, Roberta
Format: Article
Language:English
Subjects:
Developing countries
Enterprises
Innovation
Learning
Research and development
Technological change
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Summary:This paper presents a critical review of the global value chain (GVC) literature in light of the "technological capabilities" approach to innovation in less-developed countries (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 hidden in the GVC literature. We propose a shift in the empirical and theoretical agenda, arguing that research should integrate the analysis of the endogenous process of technological capability development, including specific firm-level efforts, and of the mechanisms allowing knowledge to flow within and between different global value chains into the GVC literature.
ISSN:1360-0818
1469-9966
DOI:10.1080/13600810701848144