The Importance of Intangible Assets for Changing the Model of Developing Countries' Participation in Global Production Chains

V. N. Kirillov ()

International Trade and Trade Policy, 2025, vol. 11, issue 2

Abstract: The importance of accumulation of intangible assets for changing the model of participation of developing countries in global production chains is considered. The construction of highlycomplex chains in recent decades, based on maximum efficiency of participants, within the framework of creation of global value chains (GVCs), including in developing countries is pointed out. "Offshoring" on the part of economically developed countries, development of national industry, allowed a large number of developing countries to raise indicators of economic development, the level of well-being of residents. But business models of international enterprises, which allow transferring to developing countries only less profitable stages of material production, and leave in economically developed countries more profitable intangible stages of product creation based on intangible assets, raise the issue of the need for enterprises of developing countries to more actively use intangible assets to change the model of their participation in global production chains in order to move to more profitable stages of GVCs. The increasing role of intangible assets in the post-industrial economy, their characteristics are noted, more intensive investment in them compared to tangible assets is indicated, the need for such investment to change the place of the developing countries in the GVC is indicated. The use of such tools for receiving intangible assets as obtaining explicit and implicit knowledge by GVCs participants from leading firms in these chains, import of capital goods to the developing countries, reverse engineering, formation of a first-class brand reputation and positive image, import of human capital is studied. In order to move to more profitable GVCs segments in the developing countries, it is noted that they need to develop an absorbing ability to perceive intangible assets created in other countries. The importance of foreign direct investment and government policy in the field of intellectual property, international trade and investment in the acquisition of intangible assets by firms in developing countries is emphasized

Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:acl:journl:y:2025:id:779

DOI: 10.21686/2410-7395-2025-2-24-34

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