Global Value Chains and Technological Capabilities: A Framework to Study Learning and Innovation in Developing Countries

Abstract

This paper presents a critical review of the Global Value Chain literature in light of the\n“Technological Capabilities” approach to innovation in LDCs. Participation in GVC is\nbeneficial for firms in LDCs, which are bound to source technology internationally.\nHowever, the issues of learning and technological efforts at the firm-level remain largely\nuncovered by the GVC literature. We propose a shift in the empirical and theoretical agenda,\narguing that research should integrate the analysis of the endogenous process of technological\ncapability development, of the specific firm-level efforts and of the mechanisms allowing\nknowledge to flow within and between different global value chains into the GVC literature.