Using a large sample of micro data from four waves of Community Innovation Survey for EU member states, we investigate the relationship between firms’export status and different sorts of innovation activities.We find systematically positive relationship between the two, whereby the strongest correlation is found in case of product innovation and the weakest in case of organizational innovations.While aggregate data show that innovation success is increasing in firm size, we find that exporting has the strongest effect on innovation in the medium-sized firms. We also explore cross-country differences in the impact of export status on innovation. Countries with a higher share of exports in GDP and greater share of spending on research and development generally display a stronger correlation between exporting status and innovation.
COBISS.SI-ID: 23522534
The dynamics of the global economy and international trade are increasingly characterised by global value chains (GVCs), within which intermediate goods and services are traded in fragmented and internationally dispersed production processes. Successful integration of firms and countries in GVCs is increasingly important for their development and integration in the international economy. Based on an analysis of conceptual, empirical an policy-related literature on (i) GVCs in development economics and international trade models, (ii) factors behind the proliferation of GVCs, (iii) development effects, benefits and risks of integrating into GVCs, (iv) importance of GVCs for international trade, (v) theoretical considerations and empirical evidence on firms' (MNEs%) decision-making related to the establishing and modality of GVCs, (vi) GVC governance and upgrading a firm%s position within a GVC, and (vii) GVC-related changes to economic policy, we identify the priority topics for future GVCs research that are the most important for the economies of catching-up countries ("factory economies") and their firms.
COBISS.SI-ID: 22813158
This paper investigates the relationship between the value capture of multinational subsidiaries and functional upgrading, which is defined as a diversification of employment from primary business functions to higher value adding activities such as ICT, R&D, marketing or logistics. By combining survey-based business function indicators with longitudinal accounting data for a representative sample of multinational subsidiaries located in six Central and Eastern European countries (CEECs), we assess the impact of functional upgrading on foreign subsidiaries' value capture. The results provide robust evidence that the breadth as well as the scope of functional upgrading induces an upward shift of subsidiaries' value added. The effect of functional upgrading is stronger in the earlier phases after entry of the foreign investor, while the long-term growth trend remains unaffected.
COBISS.SI-ID: 35191389
Difficulties in measuring domestic value-added in exports (DVA) have led to the development of alternative measures of trade in value-added terms. These new measures have enabled more accurate estimates that reveal that the EU countries from Central and Eastern Europe (CEE10) exhibit an approximately five percentage points lower DVA share of exports compared with other EU countries (EU15). The lag is on average the highest in knowledge-intensive manufacturing sectors (eight percentage points) and the lowest in knowledge-intensive services (0.3 percentage points). However, this article argues that the CEE10 economies have acquired new knowledge by participating in GVCs and thus have gradually started increasing their level of DVA. Based on EU trade data, this article presents evidence of convergence of DVA in manufacturing and especially in the services sector.
COBISS.SI-ID: 23871462
Performance of Slovenian firms in integrating in international economy increasingly depends on the intensity and quality of Slovenian firms' integration into global value chains (GVCs) of multinational firms (MNEs) and creation of own GVCs. This monograph presents the first available assessment of the position of Slovenian firms in GVCs. It is based on the literature of GVCs' economics and on those international trade models which integrates product differentiation, monopolistic competition and firm heterogeinity that define firm's decision on the establishment and modality of GVC. The monograph analyses the following issues: what is the extent and what are the main characteristics of Slovenian firms' position in GVCs, what are the types of Slovenian firms' integration into GVCs – integration based on ownership relations (vertical integration via own subsidiaries abroad and/or via foreign parent firms) versus contractually based (arms' length) integration, which firms specific factors determine the extent and type of firms' integration in GVCs, what is the importance of integration in GVCs for the overall performance of Slovenian firms, which are possible / necessary policy measures for more intensive and development wise positive integration of Slovenian firms in MNEs' GVCs. In the analysis we use several methodological approaches, i.e. sectoral analysis based on supply chain matrix, detailed analysis of individual firm-level data of Slovenian firms and a questionnaire survey among foreign subsidiaries located in Slovenia.
COBISS.SI-ID: 283506688