Global Value Chain Innovation Research Articles

Innovative models of enterprise activities in global value chains

Methods. The research is based on the use of such general scientific methods as: logical and historical – to study the historical conditions of the development of the world economy, which influenced the change of scientific ideas about the nature of the innovation process; general and specific – to establish the specifics of theoretical innovation models; analysis and synthesis – to highlight the advantages and disadvantages of open innovations. Results. The evolution of scientists’ views on the nature of innovation processes is traced in the article. Five dominant theoretical models of innovation are characterized, namely: «technological push», «market involvement», «combination of technological capabilities and market needs», «integrated innovation process», «chain» and «open innovation». The relationship between changes in the economic system of society and the development of scientific ideas about the nature of innovation processes has been established. Specific features of the open innovation model are singled out and directions of its application in the organization of innovative activities of enterprises joining global value chains are demonstrated. The advantages and disadvantages of the model of open innovation in global value chains are demonstrated. Novelty. The scientific novelty of the research results lies in the determination of the possibilities of using various types of open innovations existing at the current stage in global value creation chains, for which their ranking was carried out based on the combination of the value of the level of innovation inclusion in the global value creation chain and the purpose of the enterprise’s activity. Practical value. The results of the study reveal the variability of theoretical ideas about the innovation process depending on the transformations of economic systems, and therefore allow enterprises to choose more effective competitive strategies for their development.

Knowledge Transfer and Technological Innovation in Global Value Chains

This paper aims to deeply study the interrelationship between knowledge transfer and technological innovation in the global value chain, explore its impact on enterprises and economy, as well as the challenges faced and countermeasures. Through case studies and theoretical analysis on a global scale, it provides a new theoretical perspective and practical experience, and provides useful reference and reference for enterprises and policy makers in knowledge transfer and technological innovation in global value chains.

Intellectual property strategy and the governance of technological platform-driven global value chains: The case of Qualcomm

This study investigates the impact of intellectual property (IP) strategy on the governance of technological platform-driven global value chains (GVCs) using a case study of the collaboration between Qualcomm and Chinese smartphone manufacturers. Our findings are twofold. First, even when IP protection is inadequate or technological capabilities of IP users are weak, a well-designed IP strategy can allow a technological platform vendor (Qualcomm) to transfer knowledge to users in developing countries while still protecting their own IPs. Second, by reducing the platform and value chain’s modularity, a good IP strategy can encourage platform vendors to offer more innovation and learning opportunities along GVCs. We show there can be a significant mutual reinforcement mechanism included in an IP strategy that supports the co-evolution of platform vendors and a few selected users (OPPO, VIVO, and Xiaomi) with great potential for learning and innovation in GVCs.

Global Value Chain Innovation: A Research Review and Trend Outlook—Based on Citespace Knowledge Mapping Analysis

Global Value Chain Innovation: A Research Review and Trend Outlook—Based on Citespace Knowledge Mapping Analysis

The nature of innovation in global value chains

Global value chains (GVCs) have revolutionized production processes and many companies no longer produce goods and services entirely in one single country or within their own organizational boundaries. Through offshoring and outsourcing, value chains are sliced up and activities are dispersed to locations and actors where they can be produced or executed most efficiently. The fine slicing of GVCs also implies that innovation activities can be geographically dispersed and separated from other GVC activities. However, there have been inconsistent arguments on the impact of this dispersion on innovations and on the effect of innovations on GVC activities, as research on the topic has been sporadic, inconclusive, and fragmented. Thus, this paper conceptually discusses the nature of innovation in GVCs by reviewing literature and raises important questions that should be addressed. It also outlines a variety of possible research directions and future research foci that can and should be taken to develop the field.

Deriving new anticipation-based policy instruments for attracting research and development and innovation in global value chains to Europe

In this paper, we discuss new anticipation-based policy instruments to improve the attractiveness of Europe for innovative activities in a world of accelerating innovation. The case studies and interviews with company representatives which we collected in relation to developments in Global Value Chains (GVC) show a high level of interest in these new anticipatory policy instruments. Since the companies analysed are active in different sectors and Research and Development and Innovation (R&D&I) Global Value Chains, we suggest that the policy instruments and options discussed be linked with current and future sectoral initiatives organised within the framework of the Smart Specialisation Strategy. This gives numerous established and new stakeholders from business, politics, science and society across Member States, regions and cities, and from outside the EU, the chance to develop bright ideas for new products, services, processes and employment, and to work in a well-structured and open-minded environment. In addition, this participatory, foresight-based approach helps regions to approach their development systematically in new fields of innovation and industry which are appropriate for the region's innovation ecosystem and for their stakeholders. This approach fits very well with the new innovation and foresight labs which are currently extremely popular in companies highly active in R&D&I. These labs have a highly experimental character and lots potential for game-changing innovations. The same approach might be necessary for an ambitious policy to upgrade European industry and R&D&I capabilities in order to tap into transnational corporations' GVCs by creating a process for engaging, anticipating, assessing and responding on an ongoing basis.

Variety of Innovation in Global Value Chains

This article analyses how the geography and organization of pre- and production stages in GVC contribute to lead firms' innovation development. A novel approach in GVC studies is introduced based on transaction cost economics (TCE) and the innovation strategy's Modularity-Maturity matrix. The combination of these two perspectives allowed the conceptualization and assessment of two key dimensions in the generation of innovation in GVC: the geographic dispersion of value chain stages and lead firms' control over operations. The study of the intersection of the two dimensions led to the identification of four distinct innovation models in GVC. Evidence from four global manufacturing industries - pharmaceuticals, bicycle, design furniture and wine - suggests that lead firms' innovation capabilities and product innovation cycle are shaped by the specific structure of the GVC wherein they operate.

The Nature of Innovation in Global Value Chains

The Nature of Innovation in Global Value Chains

Innovation in Global Value Chains: Co-location of Production and Development in Italian Low-Tech Industries

Buciuni G. and Finotto V. Innovation in global value chains: co-location of production and development in Italian low-tech industries, Regional Studies. Despite the spread of global value chains, recent studies suggest that disentangling tangible and intangible activities hinders innovation. Acknowledging the importance of the co-location of research and development (R&D) and manufacturing, this paper investigates the co-location rationale in three Italian industries. Drawing on a multiple case study, findings reveal that while innovation thrives on internationally dispersed functions, the execution of a specific bundle of development activities hinges on distinctive manufacturing knowledge. Evidence suggests that this innovation bundle is performed where industrial production occurs. Accordingly, this paper claims that it is the contiguity between development activities and production in manufacturing locales that ultimately supports innovation.

Who profits from innovation in global value chains?: a study of the iPod and notebook PCs

In an era when new ideas are brought to the market by global value networks of specialists rather than by one company, a key question is who captures the most value from innovation in such a structure, and why? This paper addresses the question of who benefits from innovation in global value chains by looking at specific computer and electronics products. We apply a novel industry studies methodology for measuring the distribution of financial value across the supply chains for two models from Apple’s iPod family and notebook PC models from Lenovo and Hewlett-Packard (HP). These are all examples of globally innovated products, combining technologies from the U.S., Japan, and other countries, and assembled in China. Our analysis shows that the gross margins of Apple for its high-end iPod products are generally higher than those earned by HP and Lenovo for notebook PCs, although not so high as to be considered “supernormal.” A key reason for the difference is that Apple’s control of the core software, proprietary standards and complementary infrastructure of the iPod enables it to retain greater profits, whereas a large share of the PC industry profits are siphoned off to Microsoft and Intel who control key technical standards. Consistent with Teece (1986), our results confirm the importance of stages of technical evolution, appropriability regimes and complementary assets as determinants of profiting from innovation. On the other hand we find that manufacturing has become commoditized and is no longer a key to profiting from innovation in final electronic products. Also, contrary to recent suggestions in the literature, we find no evidence of a causal link between product and industry architectures. Instead, there is a vast electronics “industry architecture” that can easily support product-level value chain configurations ranging from modular to integrated.

Who Profits from Innovation in Global Value Chains? A Study of the iPod and Notebook PCs

The power of innovation to create economic value and reward pioneers with exceptional profits is a deeply-held belief of inventors, entrepreneurs, investors and the public. Innovation can enrich companies and individuals and sometimes disrupt entire industries. Yet many studies have shown that the value from innovation is often captured by someone other than the original innovator, whether by imitators, suppliers of key components, intellectual property owners, or providers of related products and services. In an era when new ideas are brought to the market by networks of specialists rather than by one company, a key question is who captures the most value from innovation in such a structure, and why?