Participation of Manufacturing Firms in Global Value Chains and Eco-Innovation Performance: A Case of Lithuania

Abstract

In recent decades, international trade relations have changed significantly due to faster development of logistics, global brands, redistribution of production, and regional specialization. The increasing number of challenges has been observed in global value chains due to rapid globalization. Manufacturing firms, embedded in global value chains, have been found to be not only key players in the market, but also the main polluters. Therefore, the firms, aiming to respond to these challenges are forced to look for more environmentally friendly alternatives. As a consequence, eco-innovation has been recognized as a key factor in preventing a negative impact on the environment. The article aims to disclose the participation of the Lithuanian manufacturing sector in global value chains and eco-innovation performance. For this study, we employ literature review and statistical analysis methods. The results reveal the extent of Lithuania's participation in global value chains and its long-term changes, as well as the eco-innovation performance in the context of the EU. The insights for policy makers and future research are elaborated.