Quantitative Methods for Place-Based Innovation Policy
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Quantitative Methods for Place-Based Innovation Policy

Measuring the Growth Potential of Regions

Edited by Roberta Capello, Alexander Kleibrink and Monika Matusiak

Place-based innovation policy design requires an in-depth understanding of territories and their complexity. Traditional statistics, with a lack of publicly available data at the disaggregated (sub-sectoral and regional) level, often do not provide adequate information. Therefore, new methods and approaches are required so that scientists and experts that can inform decision-makers and stakeholders in choosing priorities and directions for their innovation strategies. The book replies to such a need by offering advanced mapping methodologies for innovation policies with a special focus on approaches that take into account place-based policies.
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Chapter 4: Mapping global value chains

Giovanni Mandras and Andrea Conte

Abstract

Global value chains (GVCs) are networks of production and trade across countries. In recent years, GVCs have become the new paradigm for the production of goods and services, since production is increasingly internationally integrated. While a large literature investigated GVCs in terms of the distribution of production across different countries, their role at the regional (sub-national) level is less well understood. In particular, in the policy-making process, two important regional dimensions need to be considered: production processes can be distributed across regions and not only across countries; and GVCs integration might vary significantly across regions within a country. Moreover, an important implication of ‘the new GVC paradigm’ is to go beyond industries, complementing the industrial specialisation approach with the business functional approach. Regions, more than countries, tend to specialise in specific activities rather than industries, and their effective participation into GVCs depends on the local know-how, research and development, and innovation capabilities to perform these tasks. In this chapter, providing the technical background needed to map GVCs, the authors derive the distribution of trade in value added by regions, providing useful insights on where the value added is generated at each stage of the supply chain, where the most innovative production phases take place, and the trade contribution to regional gross domestic product.

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