The Role of Innovation in Upgrading in Global Value Chains

Hyelin Choi, Semin Kim, Taehwan Jung

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

We examine the role of innovative efforts in industries from the perspective of global value chains (GVCs). We set up a simple model and empirically test it using patent and bilateral export decomposition data. The model shows that innovative activities assumed to decrease the cost of conducting high-skilled tasks can upgrade the position of the industry in GVCs. This is also supported by data on patents and GVC-related data from the OECD and the Asian Development Bank. The empirical results reveal that a higher number of patent applications are closely related to more production of intermediate goods rather than assembly.

Original languageEnglish
Pages (from-to)273-283
Number of pages11
JournalGlobal Economic Review
Volume48
Issue number3
DOIs
Publication statusPublished - 2019 Jul 3

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All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Economics, Econometrics and Finance(all)
  • Political Science and International Relations

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