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Summary: The Innovation Systems (IS) literature tends not to emphasize the crucial impact of international knowledge and innovation exchange and collaboration through, for example, inter-firm and intra-firm networks and Global Value Chains (GVC). In developing countries this aspect is crucial, with integration in GVC playing a growing and very important role in accessing knowledge and enhancing learning and innovation. However, there is no agreement in the literature about how innovation systems and GVC interact, and how this interaction is likely to affect enterprise learning. Three main conclusions emerge from the theoretical analysis and evidence presented in this paper. First, learning mechanisms can vary widely within the various forms of governance of GVC: they can be the result of the pressure to achieve international standards, or be facilitated by direct involvement of the value chain leaders when the suppliers’ competence is low and the risk of failure to comply is high. When the competences of the actors in the value chain are complementary, learning is mutual and is based on intense face-to-face interactions. Second, as we “open” IS to foreign sources of knowledge, the relationship between GVCs and IS is nonlinear and endogenous, and mutually affecting. On the basis of our model, we would expect a well-structured and efficient innovation system would help to reduce transaction complexity and enable transactions based on relational forms of GVC governance. Third, the internal governance of GVC is a dynamic phenomenon that is subject to continuous adjustments and changes, and the nature of the IS affects this co-evolution. [Copyright &y& Elsevier]

Analyzes the impact of trade liberalization on the cooperative behavior of shoe firms located in a cluster in Guadalajara, Mexico. Impact of trade policy reform in clusters; Historical overview of the Guadalajara cluster; Relationships between firm performance and cooperation.

Presents a comparison between the ideal-typical industrial district as defined in the literature, footwear clusters in Italy and in Mexico. Description of the model; Italian footwear industry; Mexican footwear industry; Italian districts of Brenta and Marche; Mexican districts of Guadalajara and Leon.

Highlights • GVC involvement of host countries is associated to local sourcing by foreign investors. • The larger the participation in GVCs the higher the levels of local sourcing. • Upstream specialization is positively correlated to more local sourcing and support to local suppliers. • These effects are larger in countries with higher education spending and stronger rule of law. Abstract The local sourcing of intermediate products is one the main channels for foreign direct investment (FDI) spillovers. This paper investigates whether and how participation and positioning in the global value chains (GVCs) of host countries is associated to local sourcing by foreign investors. Matching two firm-level data sets on 19 Sub-Saharan African countries and Vietnam to country-sector level measures of GVC involvement, we find that more intense GVC participation and upstream specialization are associated to a higher share of inputs sourced locally by foreign investors. These effects are larger in countries with stronger rule of law and better education. [ABSTRACT FROM AUTHOR]

Summary Firms from emerging countries are going global, and Europe is attracting around one-third of their direct outward investments. Growing internationalization constitutes an opportunity for technological catch up. In this paper we analyze Brazilian, Indian, and Chinese cross-border inventions with European Union (EU-27) inventors, during the period 1990–2012. Our results suggest that these inventions represent an opportunity for emerging country firms to accumulate technological capabilities, access frontier knowledge, and appropriate the property rights of co-inventions. This paper contributes to understanding catching up by emerging country firms. [ABSTRACT FROM AUTHOR]

Summary: From a development perspective an investigation of the changes that have occurred in the wine industry is of particular interest because it provides evidence on how emerging economies have been able to acquire significant shares of the international market in a dynamic sector. Based on novel empirical evidence, this paper shows that emerging countries with diverse institutional models and innovation strategies have actively participated in the process of technological modernization and product standardization. These newcomers in the wine sector have responded particularly effectively to changes in demand, aligning emerging scientific approaches with institutional building efforts and successful marketing strategies. [ABSTRACT FROM AUTHOR]

It has been shown that clustering helps local enterprises in industrial districts over-come growth constraints and compete in distant markets in advanced and less developed countries. Nevertheless, recent contributions have stressed that more attention needs to be paid to external linkages and to the role played by global buyers to foster upgrading at cluster levels. In this study, we contribute to this debate focusing on the analysis of the relationships existing between clustering, global value chains, upgrading, and sectoral patterns of innovation in Latin America. We find that sectoral specificities matter and influence the mode and the extent of upgrading in clusters integrated in global value chains. [ABSTRACT FROM AUTHOR]

There is mounting agreement that the global economy is at the nascent stage of a green transformation. In response, multinational enterprises (MNEs) are seeking to enhance their capabilities for sustainable innovation and many have started to globalise their green efforts. But to what extent and how (if at all) do green Foreign Direct Investments (FDIs) contribute to the deepening of sustainability capabilities? To address this question, we employ a novel dataset of 1217 green FDI in renewable energy sectors worldwide, during the period 1997 to 2015. A propensity score matching and difference-in-difference econometric strategy provides three main results. First, green FDIs enhance the overall orientation to sustainability of MNEs. They have both a greening effect on the firms' overall technology bases and increases specialization in specific green technologies. Second, green FDIs have a significant positive impact on the degree and quality of MNEs innovative capacity in sustainable technologies. In other words, the MNEs extend their innovative capabilities towards more sustainability-oriented direction and strengthen their innovation activities related to green technologies. Third, we find that the globalisation process mode matters: in the long run, green FDIs result in newly-established subsidiaries contributing more to innovativeness and greening than acquisition of foreign firms. These findings have important implications for policies designed to increase the sustainability transition. • GFDI enhances the overall sustainability-orientation of MNEs. • GFDI enhances the quantity and quality of green innovative capacity in MNEs. • GFDI enhances MNEs' specialization in specific green technologies. • Effects hold true for both green pure-players and multi-technology MNEs. • Effects from newly established subsidiary last longer than those from overseas acquisitions. [ABSTRACT FROM AUTHOR]

• Foreign ownership positively impacts on subsidiaries' green innovative capabilities. • MNE subsidiaries vis-à- vis domestic companies have green innovative advantage when they are in less developed but more innovative countries. • Green FDI is more effective when technologies are characterized by more taict knowledge, such as in wind when compared with Solar PV industry. • Cross-border acquisitions are more efficient at establishing green innovative capabilities than greenfield subsidiaries. • Countries with weaker green innovative capabilities can attract green FDI to enhance their contribution to the green transition. Technologies to mitigate climate change may diffuse from lead markets to the rest of the world through several mechanisms and make important contributions to the global green transformation. In this paper, we explore the role played by multinational enterprises (MNEs) in transferring knowledge and innovative capabilities in green technologies to their global subsidiaries. We posit that the degree of green knowledge transfer and innovative capability development in subsidiaries depend on: (i) the host country characteristics, (ii) the specific technology in question, and (iii) the mode of entry. The empirical analysis combines data on foreign direct investments with patent analysis. The results suggest that being a subsidiary of a green MNE has a positive impact on the number and quality of green patents produced locally. This green innovative advantage vis-à-vis domestic companies is larger in less developed countries and in those that are less reliant on oil rents, in particular if they already possess higher levels of relevant domestic innovative capacity. Furthermore, firm and sectoral characteristics also matter. The analysis suggests that green FDIs are more effective when technologies are characterized by low tradability and tacit knowledge. Finally, cross-border acquisitions are more efficient at strengthening green innovative capabilities than subsidiaries established with greenfield investments. [ABSTRACT FROM AUTHOR]