Integrating Global Value Chain with National Innovation Systems approaches: some dimensions disregarded by the current debate

LAVARELLO PABLO; VERONICA ROBERT; DARIO VAZQUEZ

Polvorines, Buenos Aires

Jornada; X Jornadas de Economía Crítica; 2017

SEC

For several years, the approaches of National Innovation Systems (NIS) and Global Value Chains (GVC) had little dialogue with each other. While NIS focused on the development of technological capabilities at national level (Lundvall, 1992; Nelson, 1993), GVC studied production internationalization at global level (Humphrey & Schmitz, 2002; Gereffi et al., 2005).Recently, several authors have suggested a theoretical integration of both approaches, considering not only local but also external learning sources involved in catching up processes (Jurowetzki et al., 2015; Pietrobelli & Rabellotti, 2011). The main link for such integration relies on innovation (or upgrading), which is key in both. Although other authors are aware of the centrality of innovation, they discard that integration attempt because of differences in proposed policies (Szapiro et al., 2016).This paper aims to contribute to that debate by exploring the backgrounds of three dimensions linked to innovation and upgrading. First, interactive learning (Lundvall, 1985). Second, structural competitiveness (Freeman, 1982). Third, how multinational companies´ technological strategies influence on NIS (Archibugi and Michie, 1997; Chesnais, 1992).Early contributions to NIS literature highlighted the first two aspects, since interactions within a NIS have a key role as source of technological learning, which in turn strengthened local technological capabilities and expanded structural competitiveness. The third aspect was addressed by MNE`s literature, which precedes GVC approaches, although it was later overlooked by upgrading literature. In short, we argue that the current debate, ignoring the backgrounds of these three dimensions, hints to a theoretical integration that can be misleading and end in contradictory policy recommendations.