UNU-MERIT Working Papers

Working Paper #2021-007

Deepening or delinking? Innovative capacity and global value chain participation in the ICT sectors

Rasmus Lema, Carlo Pietrobelli, Roberta Rabellotti & Antonio Vezzani #2021-007 PDF

Innovation trajectories in global value chains can take highly
differentiated pathways. Firms and other organisations operating in a
sector in a given country may gain or lose innovative capacity over time
compared to their peers in other countries. In this paper we address the
question: do stylised trajectories emerge from the analysis of
countries' relative innovative capacity and global value chain
participation? We draw explorative insights from a cluster analysis of
45 countries on the subsectors of the information and communication
technology industry: hardware and software. Our analysis uncovers
remarkable differences across sectors and countries. We identify
different trajectories and discuss the sub-sectoral specificities which
contribute to explaining these differences. The association between the
strengthening of innovative capacity and deeper insertion in global
value chains applies to only a handful of countries and only in the
software subsector. These findings raise questions for future research
on innovation in global value chains.

Keywords
  • Global value chains
  • Innovation capacity
  • Innovation trajectories
  • Hardware
  • Software
  • ICT
JEL codes
  • F23
  • D23
  • L22
  • L25
  • O10
  • O32
  • O38

Cite this as

APA 7th ed.

Lema, R., Pietrobelli, C., Rabellotti, R., & Vezzani, A. (2021). Deepening or delinking? Innovative capacity and global value chain participation in the ICT sectors (UNU-MERIT Working Paper No. 2021-007). UNU-MERIT. https://unu-merit.nl/publications/working-papers/abstract/?id=8728

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