Global value chains and sectoral innovation systems: An analysis of the aerospace industry

Thiago Caliari, Leonardo Costa Ribeiro, Carlo Pietrobelli and Antonio Vezzani

Structural Change and Economic Dynamics, 2023, vol. 65, issue C, 36-48

Abstract: This paper explores the link between a country's position in the aerospace global value chain (GVC) and the strength of its innovation system. Countries’ participation to different stages of the GVC is proxied using export data at a narrow product level, while innovation system indicators are built from US patents. The analysis covers the 2007–2018 period for 38 countries. Our results highlight a relationship between the strength of the innovation system and a country's participation and specialization in different stages of the aerospace GVC: varied and pervasive (quality) rather than more intensive (quantity) innovation systems are associated with a stronger presence in higher value-added stages of the value chain. These results highlight the importance of improving an innovation system targeting the development of a differentiated knowledge base and fostering the integration of different actors to sustain the aerospace industry and facilitate upgrading within the value chain.

Keywords: Aerospace industry; Innovation system; GVC; Trade competitiveness (search for similar items in EconPapers)
JEL-codes: D4 L62 O3 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Working Paper: Global value chains and sectoral innovation systems: An analysis of the aerospace industry (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:streco:v:65:y:2023:i:c:p:36-48

DOI: 10.1016/j.strueco.2023.02.004

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