Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/327505 
Year of Publication: 
2024
Citation: 
[Journal:] Journal of Innovation & Knowledge (JIK) [ISSN:] 2444-569X [Volume:] 9 [Issue:] 4 [Article No.:] 100603 [Year:] 2024 [Pages:] 1-11
Publisher: 
Elsevier, Amsterdam
Abstract: 
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.
Subjects: 
MNEs
Domestic firms
Innovation performance
GVC-OLI nexus
GVC complexity
GVC participation
JEL: 
O31
O32
O33
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

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