Deepening or delinking? Innovative capacity and global value chain participation in the IT industry

Breakthrough? China’s and India’s transition from production to innovation

Rasmus Lema, Carlo Pietrobelli, Roberta Rabellotti and Antonio Vezzani ()

Industrial and Corporate Change, 2021, vol. 30, issue 4, 1065-1083

Abstract: Innovation trajectories in global value chains (GVCs) can take differentiated pathways. In this article, we address the question: do stylized trajectories emerge from the analysis of countries’ relative innovative capacity (IC) and GVC participation? We draw explorative insights from a cluster analysis of 45 countries on the two subsectors of the information technology industry: hardware and software. Our analysis uncovers remarkable differences between hardware and software and across countries. We identify different trajectories and discuss the sectoral specificities that contribute explaining their existence. The association between the strengthening of IC and a deeper insertion in GVCs applies only to a handful of countries and only in the software subsector. The specificity of this association raises questions for future research on innovation trajectories in GVCs.

Date: 2021
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