Assessing the Role of Innovation in Cameroonian Firms Participation in Global Value Chains

Flora Yselle Malah-Kuete and Desire Avom

Working Papers from African Economic Research Consortium

Abstract: This study aims to contribute to the empirical literature on the drivers of Cameroonian firms participation in Global Value Chains (GVCs) by examining the role of innovation. We use logistic regressions and matching techniques to analyse pooled cross-sectional data from the 2008 and 2016 Cameroonian Enterprise Censuses. Our findings indicate that investments in innovation, particularly in machinery and equipment, as well as software and technology, significantly enhance the probability of Cameroonian firms participating in GVCs through subsidiary ties with foreign firms. Building upon these results, we discuss the implications of promoting innovation and making strategic investments in critical sectors of the economy to facilitate greater engagement of local firms in GVCs.

Date: 2024-11-27
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Note: African Economic Research Consortium
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