Author(s)

Zuchang ZHONG^1*, Qianyi ZOU², Mengyuan ZHANG³, Pang Yuning⁴, Qiuyu HUANG⁴

Affiliation(s)

^1. Guangdong Institute of International Strategy, Guangdong University of Foreign Studies, Guangzhou 510420, China;

^2. School of Economics and Trade, Guangdong University of Foreign Studies, Guangzhou 510006, China;

^3. School of Accounting, Guangdong University of Foreign Studies, Guangzhou 510006, China;

^4. School of Business, Guangdong University of Foreign Studies, Guangzhou 510006, China.

Corresponding Author

Zuchang ZHONG, email: zhongzuc@163.com

ABSTRACT

Embedding global value chain (GVC) is an important means for a country to consolidate and enhance its industrial competitive advantage and innovation capability. Based on the panel data of 62 countries from 2010 to 2015, this paper empirically tests the influence of global value chain embeddedness on national innovation capability, and divides the sample into developed and developing countries according to the standard of national development level, to test the national heterogeneity of the influence of GVC embeddedness on innovation capability. The study finds that: (1) A country's forward participation can inhibit its innovation capability, while backward participation can promote its innovation capability. The effects of different participation show that embedding GVC can promote a country's innovation capability. (2) The influence of forward participation, backward participation and total participation of GVC on innovation capability presents an inverted U-shaped relationship. Over embeddedness will lead to the risks of "capture effect" and " Low-end Locking Dilemma". (3) Embedded in global value chains has national heterogeneity. Developed countries promote innovation capability through GVC forward participation, while developing countries promote innovation capability through GVC backward participation.

KEYWORDS

Global value chain; national innovation capacity; forward participation; backward participation; over embeddedness.

CITE THIS PAPER

Zuchang ZHONG, Qianyi ZOU, Mengyuan ZHANG, Pang Yuning, Qiuyu HUANG. Does global value chain embeddedness promote the national innovation capability? —— empirical analysis based on panel data of 62 countries. Eurasia Journal of Science and Technology. 2023, 5(1): 1-14.

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