Foreign multinational global value chain participation and domestic innovation: Viewing GVCs inside-out and outside-in

Two questions persist regarding global value chains (GVCs): First, what are the strategies and pathways through which multinational enterprises (MNEs) integrate and navigate GVCs? Second, what are the characteristics of GVCs in which MNEs participate? An analysis of these questions leads to inside–o...

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Main Authors: Lina Yu, Zenghui Guo, Jing Ning
Format: Article
Language:English
Published: Elsevier 2024-10-01
Series:Journal of Innovation & Knowledge
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2444569X24001422
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author Lina Yu
Zenghui Guo
Jing Ning
author_facet Lina Yu
Zenghui Guo
Jing Ning
author_sort Lina Yu
collection DOAJ
description Two questions persist regarding global value chains (GVCs): First, what are the strategies and pathways through which multinational enterprises (MNEs) integrate and navigate GVCs? Second, what are the characteristics of GVCs in which MNEs participate? An analysis of these questions leads to inside–out and outside–in perspectives on GVCs. The literature on MNEs mostly focuses on the quantity and quality of foreign direct investment rather than on the differences in MNEs’ production activities and structure of GVCs. This study examines the effects of MNEs’ participation in simple and complex GVCs on domestic innovation. We find that the positive effects are mainly driven by MNEs’ downstream participation in simple GVCs. The mechanism tests indicate that MNEs’ upstreamness within simple GVCs negatively affects domestic firms’ absorption capacity and internal R&D and that within simple and complex GVCs negatively affects domestic firms’ export resilience.
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institution Kabale University
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publishDate 2024-10-01
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series Journal of Innovation & Knowledge
spelling doaj-art-c6e2463d6fa04a5086d9e257e286da162024-12-08T06:11:37ZengElsevierJournal of Innovation & Knowledge2444-569X2024-10-0194100603Foreign multinational global value chain participation and domestic innovation: Viewing GVCs inside-out and outside-inLina Yu0Zenghui Guo1Jing Ning2School of Economics, Ocean University of China, 238 Songling Road, Laoshan District, Qingdao, Shandong Province, 266100, ChinaSchool of Economics, Ocean University of China, 238 Songling Road, Laoshan District, Qingdao, Shandong Province, 266100, ChinaSchool of Management, Ocean University of China, 238 Songling Road, Laoshan District, Qingdao, Shandong Province, 266100, China; Corresponding author.Two questions persist regarding global value chains (GVCs): First, what are the strategies and pathways through which multinational enterprises (MNEs) integrate and navigate GVCs? Second, what are the characteristics of GVCs in which MNEs participate? An analysis of these questions leads to inside–out and outside–in perspectives on GVCs. The literature on MNEs mostly focuses on the quantity and quality of foreign direct investment rather than on the differences in MNEs’ production activities and structure of GVCs. This study examines the effects of MNEs’ participation in simple and complex GVCs on domestic innovation. We find that the positive effects are mainly driven by MNEs’ downstream participation in simple GVCs. The mechanism tests indicate that MNEs’ upstreamness within simple GVCs negatively affects domestic firms’ absorption capacity and internal R&D and that within simple and complex GVCs negatively affects domestic firms’ export resilience.http://www.sciencedirect.com/science/article/pii/S2444569X24001422O31O32O33
spellingShingle Lina Yu
Zenghui Guo
Jing Ning
Foreign multinational global value chain participation and domestic innovation: Viewing GVCs inside-out and outside-in
Journal of Innovation & Knowledge
O31
O32
O33
title Foreign multinational global value chain participation and domestic innovation: Viewing GVCs inside-out and outside-in
title_full Foreign multinational global value chain participation and domestic innovation: Viewing GVCs inside-out and outside-in
title_fullStr Foreign multinational global value chain participation and domestic innovation: Viewing GVCs inside-out and outside-in
title_full_unstemmed Foreign multinational global value chain participation and domestic innovation: Viewing GVCs inside-out and outside-in
title_short Foreign multinational global value chain participation and domestic innovation: Viewing GVCs inside-out and outside-in
title_sort foreign multinational global value chain participation and domestic innovation viewing gvcs inside out and outside in
topic O31
O32
O33
url http://www.sciencedirect.com/science/article/pii/S2444569X24001422
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AT zenghuiguo foreignmultinationalglobalvaluechainparticipationanddomesticinnovationviewinggvcsinsideoutandoutsidein
AT jingning foreignmultinationalglobalvaluechainparticipationanddomesticinnovationviewinggvcsinsideoutandoutsidein