IDEAS home Printed from https://ideas.repec.org/a/pal/eurjdr/v31y2019i3d10.1057_s41287-018-0167-y.html
   My bibliography  Save this article

Learning and Upgrading of Craft Exporters at the Interface of Global Value Chains and Innovation Systems

Author

Listed:
  • Jan Fransen

    (Erasmus University Rotterdam)

  • Peter Knorringa

    (Erasmus University Rotterdam)

Abstract

Firms operating at the interface of global value chains (GVCs) and innovation systems (ISs) are expected to have better access to knowledge than their competitors, enabling them to learn at a faster pace. This article assesses if and how learning at the interface enables handicraft exporters in emerging economies to upgrade and deepen their capacities. Our conclusion from the analysis of three case studies is that craft exporters incrementally deepen their capacities, but only rarely upgrade. Quasi-hierarchical GVCs in combination with immature ISs are likely to lead to the selective deepening of capacities related to production processes, whereas relational GVC in combination with mature ISs may instead lead to the selective deepening of capacities related to products. The research findings also suggest that GVCs and ISs co-evolve in path-dependent processes. As a result, long periods of incrementally deepening the firms’ capacities are intertwined with occasional spurts of discrete upgrading.

Suggested Citation

  • Jan Fransen & Peter Knorringa, 2019. "Learning and Upgrading of Craft Exporters at the Interface of Global Value Chains and Innovation Systems," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 31(3), pages 530-557, July.
    • Handle: RePEc:pal:eurjdr:v:31:y:2019:i:3:d:10.1057_s41287-018-0167-y
    DOI: 10.1057/s41287-018-0167-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41287-018-0167-y
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/s41287-018-0167-y?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jan Wengel & Edgard Rodriguez, 2006. "SME Export Performance in Indonesia After the Crisis," Small Business Economics, Springer, vol. 26(1), pages 25-37, February.
    2. Jan Fransen & A.H.J. (Bert) Helmsing, 2017. "Absorptive Capacity as a Mediator: Innovation of Handicraft Exporters in Yogyakarta, Indonesia," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 108(6), pages 737-752, December.
    3. Lema, Rasmus & Quadros, Ruy & Schmitz, Hubert, 2015. "Reorganising global value chains and building innovation capabilities in Brazil and India," Research Policy, Elsevier, vol. 44(7), pages 1376-1386.
    4. Bengt-Åke Lundvall, 2007. "National Innovation Systems—Analytical Concept and Development Tool," Industry and Innovation, Taylor & Francis Journals, vol. 14(1), pages 95-119.
    5. Andrea Morrison & Carlo Pietrobelli & Roberta Rabellotti, 2008. "Global Value Chains and Technological Capabilities: A Framework to Study Learning and Innovation in Developing Countries," Oxford Development Studies, Taylor & Francis Journals, vol. 36(1), pages 39-58.
    6. Asheim, Bjorn T & Isaksen, Arne, 2002. "Regional Innovation Systems: The Integration of Local 'Sticky' and Global 'Ubiquitous' Knowledge," The Journal of Technology Transfer, Springer, vol. 27(1), pages 77-86, January.
    7. Peter Sunley & Steven Pinch & Suzanne Reimer & James Macmillen, 2008. "Innovation in a creative production system: the case of design," Journal of Economic Geography, Oxford University Press, vol. 8(5), pages 675-698, September.
    8. Jan Fransen & Bert (AHJ) Helmsing, 2016. "Breaching the barriers: The segmented business and innovation system of handicraft exports in Cape Town," Development Southern Africa, Taylor & Francis Journals, vol. 33(4), pages 486-501, July.
    9. Xie Gaohua, 2000. "Recalling the Rise of the Yiwu Small-Commodities Market," Chinese Economy, Taylor & Francis Journals, vol. 33(5), pages 48-64, September.
    10. Saliola, Federica & Zanfei, Antonello, 2009. "Multinational firms, global value chains and the organization of knowledge transfer," Research Policy, Elsevier, vol. 38(2), pages 369-381, March.
    11. Pietrobelli, Carlo & Rabellotti, Roberta, 2011. "Global Value Chains Meet Innovation Systems: Are There Learning Opportunities for Developing Countries?," World Development, Elsevier, vol. 39(7), pages 1261-1269, July.
    12. Paola Criscuolo & Rajneesh Narula, 2008. "A novel approach to national technological accumulation and absorptive capacity: aggregating Cohen and Levinthal," The European Journal of Development Research, Taylor and Francis Journals, vol. 20(1), pages 56-73.
    13. Keun Lee & Marina Szapiro & Zhuqing Mao, 2017. "From Global Value Chains (GVC) to Innovation Systems for Local Value Chains and Knowledge," Working Paper Series no99, Institute of Economic Research, Seoul National University.
    14. Ron Martin & Peter Sunley, 2006. "Path dependence and regional economic evolution," Journal of Economic Geography, Oxford University Press, vol. 6(4), pages 395-437, August.
    15. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    16. Charlotte Keijser & Michiko Iizuka, 2018. "Looking Beyond Global Value Chains in Capacity Development: The Case of the IT-Enabled Service (ITES) Sector in South Africa," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 442-461, July.
    17. John Humphrey & Hubert Schmitz, 2002. "How does insertion in global value chains affect upgrading in industrial clusters?," Regional Studies, Taylor & Francis Journals, vol. 36(9), pages 1017-1027.
    18. Yueh, Linda, 2013. "China's Growth: The Making of an Economic Superpower," OUP Catalogue, Oxford University Press, number 9780199205783.
    19. Bellandi, Marco & Lombardi, Silvia, 2012. "Specialized markets and Chinese industrial clusters: The experience of Zhejiang Province," China Economic Review, Elsevier, vol. 23(3), pages 626-638.
    20. Harald Bathelt & Nina Schuldt, 2008. "Between Luminaires and Meat Grinders: International Trade Fairs as Temporary Clusters," Regional Studies, Taylor & Francis Journals, vol. 42(6), pages 853-868.
    21. Elisa Giuliani, 2011. "Role of Technological Gatekeepers in the Growth of Industrial Clusters: Evidence from Chile," Regional Studies, Taylor & Francis Journals, vol. 45(10), pages 1329-1348, November.
    22. Tang, Mingfeng & Hussler, Caroline, 2011. "Betting on indigenous innovation or relying on FDI: The Chinese strategy for catching-up," Technology in Society, Elsevier, vol. 33(1), pages 23-35.
    23. Bjørn Asheim & Olof Ejermo & Annika Rickne, 2009. "When is Regional “Beautiful”? Implications for Knowledge Flows, Entrepreneurship and Innovation," Industry and Innovation, Taylor & Francis Journals, vol. 16(1), pages 1-9.
    24. Saradindu Bhaduri & Hemant Kumar, 2011. "Extrinsic and intrinsic motivations to innovate: tracing the motivation of ‘grassroot’ innovators in India," Mind & Society: Cognitive Studies in Economics and Social Sciences, Springer;Fondazione Rosselli, vol. 10(1), pages 27-55, June.
    25. Macpherson, Allan & Holt, Robin, 2007. "Knowledge, learning and small firm growth: A systematic review of the evidence," Research Policy, Elsevier, vol. 36(2), pages 172-192, March.
    26. Fiorenza Belussi & Silvia R. Sedita, 2012. "Industrial Districts as Open Learning Systems: Combining Emergent and Deliberate Knowledge Structures," Regional Studies, Taylor & Francis Journals, vol. 46(2), pages 165-184, April.
    27. Rasmus Lema & Roberta Rabellotti & Padmashree Gehl Sampath, 2018. "Innovation Trajectories in Developing Countries: Co-evolution of Global Value Chains and Innovation Systems," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 345-363, July.
    28. H. Schmitz & P. Knorringa, 2000. "Learning from Global Buyers," Journal of Development Studies, Taylor & Francis Journals, vol. 37(2), pages 177-205.
    29. Chaminade, Cristina & Vang, Jan, 2008. "Globalisation of knowledge production and regional innovation policy: Supporting specialized hubs in the Bangalore software industry," Research Policy, Elsevier, vol. 37(10), pages 1684-1696, December.
    30. R. Kaplinsky, 2000. "Globalisation and Unequalisation: What Can Be Learned from Value Chain Analysis?," Journal of Development Studies, Taylor & Francis Journals, vol. 37(2), pages 117-146.
    31. Maria Chiarvesio & Eleonora Di Maria & Stefano Micelli, 2008. "Global Value Chains and Open Networks: The Case of Italian Industrial Districts," European Planning Studies, Taylor & Francis Journals, vol. 18(3), pages 333-350, December.
    32. Cassandra C. Wang & George C. S. Lin, 2013. "Dynamics of innovation in a globalizing china: regional environment, inter-firm relations and firm attributes," Journal of Economic Geography, Oxford University Press, vol. 13(3), pages 397-418, May.
    33. Lundvall, Bengt-Ake & Johnson, Bjorn & Andersen, Esben Sloth & Dalum, Bent, 2002. "National systems of production, innovation and competence building," Research Policy, Elsevier, vol. 31(2), pages 213-231, February.
    34. Gereffi, Gary, 1999. "International trade and industrial upgrading in the apparel commodity chain," Journal of International Economics, Elsevier, vol. 48(1), pages 37-70, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jan Fransen & A.H.J. (Bert) Helmsing, 2017. "Absorptive Capacity as a Mediator: Innovation of Handicraft Exporters in Yogyakarta, Indonesia," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 108(6), pages 737-752, December.
    2. Roman Jurowetzki & Rasmus Lema & Bengt-Åke Lundvall, 2018. "Combining Innovation Systems and Global Value Chains for Development: Towards a Research Agenda," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 364-388, July.
    3. Rasmus Lema & Roberta Rabellotti & Padmashree Gehl Sampath, 2018. "Innovation Trajectories in Developing Countries: Co-evolution of Global Value Chains and Innovation Systems," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 345-363, July.
    4. Keijser, Charlotte & Belderbos, René & Goedhuys, Micheline, 2021. "Governance and learning in global, regional, and local value chains: The IT enabled services industry in South Africa," World Development, Elsevier, vol. 141(C).
    5. Yoshimichi Murakami & Keijiro Otsuka, 2020. "Governance, Information Spillovers, and Productivity of Local Firms: Toward an Integrated Approach to Foreign Direct Investment and Global Value Chains," The Developing Economies, Institute of Developing Economies, vol. 58(2), pages 134-174, June.
    6. Valentina De Marchi & Elisa Giuliani & Roberta Rabellotti, 2018. "Do Global Value Chains Offer Developing Countries Learning and Innovation Opportunities?," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 389-407, July.
    7. Lema, Rasmus & Quadros, Ruy & Schmitz, Hubert, 2015. "Reorganising global value chains and building innovation capabilities in Brazil and India," Research Policy, Elsevier, vol. 44(7), pages 1376-1386.
    8. Padmashree Gehl Sampath & Bertha Vallejo, 2018. "Trade, Global Value Chains and Upgrading: What, When and How?," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 481-504, July.
    9. Emanuele Brancati & Raffaele Brancati & Andrea Maresca, 2017. "Global value chains, innovation and performance: firm-level evidence from the Great Recession," Journal of Economic Geography, Oxford University Press, vol. 17(5), pages 1039-1073.
    10. F. Colozza & R. Boschma & A. Morrison & C. Pietrobelli, 2021. "The importance of global value chains and regional capabilities for the economic complexity of EU-regions," Papers in Evolutionary Economic Geography (PEEG) 2139, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Dec 2021.
    11. Eunkyung Park & Martin Kang’ethe Gachukia, 0. "The Role of the Local Innovation System for Inclusive Upgrading in the Global Value Chain: The Case of KenyaGAP in the Kenyan Horticultural Sector," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 0, pages 1-26.
    12. Eunkyung Park & Martin Kang’ethe Gachukia, 2021. "The Role of the Local Innovation System for Inclusive Upgrading in the Global Value Chain: The Case of KenyaGAP in the Kenyan Horticultural Sector," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(3), pages 578-603, June.
    13. Epede, Mesumbe Bianca & Wang, Daoping, 2022. "Global value chain linkages: An integrative review of the opportunities and challenges for SMEs in developing countries," International Business Review, Elsevier, vol. 31(5).
    14. Paulina Ramirez & Helen Rainbird, 2010. "Making the connections: bringing skill formation into global value chain analysis," Work, Employment & Society, British Sociological Association, vol. 24(4), pages 699-710, December.
    15. Eduardo Hernandez-Rodriguez & Ron Boschma & Andrea Morrison & Xianjia Ye, 2024. "Functional upgrading and downgrading in global value chains: The role of complementary interregional value chain linkages in EU regions," Papers in Evolutionary Economic Geography (PEEG) 2432, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Oct 2024.
    16. Yoruk, Deniz E., 2019. "Dynamics of firm-level upgrading and the role of learning in networks in emerging markets," Technological Forecasting and Social Change, Elsevier, vol. 145(C), pages 341-369.
    17. Zicheng Ma & Liang Wang & Xin Zheng & Jianqi Zhang, 2022. "National Innovation Systems and Global Value Chain Participation: The Role of Entrepreneurship," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(2), pages 897-920, April.
    18. Marina Papanastassiou & Robert Pearce & Antonello Zanfei, 2020. "Changing perspectives on the internationalization of R&D and innovation by multinational enterprises: A review of the literature," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 623-664, June.
    19. Silvia Rita Sedita & Ivan De Noni & Luciano Pilotti, 2014. "How do related variety and differentiated knowledge bases influence the resilience of local production systems?," "Marco Fanno" Working Papers 0180, Dipartimento di Scienze Economiche "Marco Fanno".
    20. Ron Boschma, 2021. "Global Value Chains from an Evolutionary Economic Geography perspective: a research agenda," Papers in Evolutionary Economic Geography (PEEG) 2134, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Nov 2021.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:eurjdr:v:31:y:2019:i:3:d:10.1057_s41287-018-0167-y. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.