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This article investigates how combining global value chain and innovation system approaches can help to foster an understanding of the possible trajectories that learning and innovation may take in developing countries. Based on the wealth of empirical evidence collected in the special issue, we introduce the notion of the co-evolution of global value chains and innovation systems and outline a framework for investigating the interaction between the two in a dynamic perspective with multiple trajectories. We find that, in some cases, there is an improvement in local innovation capabilities with potentially positive effects on overall competitiveness, while in others there is little progress or even a loss of previous innovation capacity. [ABSTRACT FROM AUTHOR]

This paper explores the location strategies of multinational enterprises (MNEs) from emerging countries (EMNEs) in search for regional strategic assets. The analysis is based on a systematic comparison between EMNEs and multinationals from advanced countries (AMNEs) in order to unveil similarities and differences between these two major sources of foreign investment into the regions of the European Union. The empirical results suggest that EMNEs follow a distinctive logic in their location strategies. They are attracted by the availability of technological competences only when their subsidiaries pursue more sophisticated and technology-intensive activities. Conversely, EMNEs share some behavioural similarities with AMNEs in their response to the spatial agglomeration of investments. [ABSTRACT FROM AUTHOR]

The aim of this article is to analyse the nature and extent of knowledge and information networks in an Italian wine cluster. Moreover, the relation between firms' characteristics and the knowledge network structure is also explored. The empirical findings show that knowledge is unevenly distributed in clusters and that networks of knowledge and information differ a great deal in terms of their structure. In fact, knowledge flows are restricted to a tightly connected community of local producers, differing in terms of knowledge assets, innovation behaviour and overall economic performance with respect to the rest of the firms in the cluster. [ABSTRACT FROM AUTHOR]

Since the second half of the 1990s the Italian economy has experienced a significant slowdown in the rate of economic growth. The “dwarfism” of its manufacturing firms, their specialization in traditional sectors and their organization in industrial districts have been identified by many scholars as major structural weaknesses in the Italian industrial system. Nevertheless, there is a vast and flourishing empirical literature showing that many industrial districts are actually changing in terms of sector specialization, international and innovation strategies and emergence of new forms of enterprise organization. In this paper, we provide a critical survey of the new and different patterns of industrial organization emerging in industrial districts. [ABSTRACT FROM AUTHOR]

This paper presents a critical review of the global value chain (GVC) literature in light of the "technological capabilities" approach to innovation in less-developed countries (LDCs). Participation in GVC is beneficial for firms in LDCs, which are bound to source technology internationally. However, the issues of learning and technological efforts at the firm level remain largely hidden in the GVC literature. We propose a shift in the empirical and theoretical agenda, arguing that research should integrate the analysis of the endogenous process of technological capability development, including specific firm-level efforts, and of the mechanisms allowing knowledge to flow within and between different global value chains into the GVC literature. [ABSTRACT FROM AUTHOR]

Comparing the Korean labour productivity growth in the last two decades with the Japanese and US labour productivity growth, data confirm a process of catching up in several important manufacturing sectors. The paper investigates its determinants using a non-neoclassical model. Investments in skills and capabilities are found to be crucial in explaining this trend. Important policy implications for developing countries are then discussed. In the long run, a targeted education policy with government intervention and a strong emphasis on technical education can give high pay-offs. This conclusion holds in particular when the aim of the country is to compete in the international markets, not along the low road to competitiveness, based on squeezing wages and profit margins, but along the high road (i.e. improving productivity, wages and profits). [ABSTRACT FROM AUTHOR]