Seizing windows of opportunity in green global value chains: the role of industrial policies in middle-income countries

Rasmus Lema (), Roberta Rabellotti and Jonathan Ambrogi
Additional contact information
Rasmus Lema: University of Johannesburg
Roberta Rabellotti: University of Johannesburg
Jonathan Ambrogi: EngGreen

Journal of International Business Policy, 2025, vol. 8, issue 3, No 7, 372 pages

Abstract: Abstract This paper investigates how middle-income countries can leverage industrial policies to participate in and upgrade within renewable energy global value chains. We distinguish between deployment and manufacturing chains and examine three sectors, solar photovoltaic, wind, and biomass power, across 12 middle-income countries. Using fuzzy-set qualitative comparative analysis, we identify key combinations of national preconditions and industrial policies—demand-side, supply-side and technology-focused—that enable different participation and upgrading trajectories. While participation is widespread in both chains, upgrading is more prominent in deployment, which presents lower entry barriers. In contrast, upgrading in manufacturing requires stronger sectoral knowledge, larger markets, and robust technology policies. Our results offer actionable insights for policymakers, emphasizing how targeted and context-specific industrial policy mixes are essential to seize windows of opportunity in these green global value chains. The study contributes to the literature on value chains and industrial policy by offering new comparative evidence and practical guidance for latecomer economies seeking to build capabilities and competitiveness in the green economy.

Keywords: Global value chain; Renewable energy; Solar photovoltaic; Wind; Biomass power; Upgrading; Industrial policy; Green windows of opportunity; Middle-income countries; Qualitative comparative analysis (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1057/s42214-025-00219-5 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:joibpo:v:8:y:2025:i:3:d:10.1057_s42214-025-00219-5

Ordering information: This journal article can be ordered from
https://www.palgrave.com/gp/journal/42214

DOI: 10.1057/s42214-025-00219-5

Access Statistics for this article

Journal of International Business Policy is currently edited by Sarianna Lundan, Ari Van Assche and Anne Hoekman

More articles in Journal of International Business Policy from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().