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CIRCLE, Center for Innovation, Research and Competences in the Learning Economy, Lund University Papers in Innovation Studies, CIRCLE, Center for Innovation, Research and Competences in the Learning Economy, Lund University

No 2017/15:
Global value chains, national innovation systems and economic development

Jan Fagerberg (), Bengt-Åke Lundvall () and Martin Srholec ()

Abstract: This paper deals with the role of global value chains (GVC) and other aspects of “openness” for economic development. To analyse the issue a comprehensive framework that allows for the inclusion of a range of relevant factors including not only different form of openness, such as GVC participation, but also technological and social capabilities, is developed. The analysis is based on evidence from 125 countries, including many developing nations, over the period 1997-2013. It is shown that economic growth reflects the strength of the national innovation system and that GVC participation is not the potent driver of economic growth that tends to be assumed.

Keywords: Global value chains; openness; capability; national innovation system; economic development; (follow links to similar papers)

JEL-Codes: F43; O10; O30; O40; O57; (follow links to similar papers)

36 pages, October 5, 2017

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