Global value chains, innovation and performance: firm-level evidence from the Great Recession

Emanuele Brancati, Raffaele Brancati () and Andrea Maresca

Journal of Economic Geography, 2017, vol. 17, issue 5, 1039-1073

Abstract: This article takes advantage of a newly available survey on the Italian industry to analyze the behavior of global value chains (GVCs) in the aftermath of the Great Recession. We design a comprehensive taxonomy of GVC participation modes and explore their impact on firms’ innovativeness and performance. Our findings highlight relevant heterogeneities in how GVC participants fared the crisis. While high-skill relational suppliers display a significant propensity to engage in innovative activities and R&D projects, other modes of GVC participation have no premium compared to domestic companies. This heterogeneity is also reflected in differential productivity and sales growth. Compared to the precrisis trends, we document a severe demand shock for low-skill and subordinated firms, while relational GVCs appear to be somewhat sheltered from the effects of the crisis.

Keywords: Global value chains; innovation; R&D; performance; Great Recession (search for similar items in EconPapers)
JEL-codes: D22 F61 O30 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (48)

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