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Innovation in Global Value Chains: Co-location of Production and Development in Italian Low-Tech Industries

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  • Giulio Buciuni
  • Vladi Finotto

Abstract

Buciuni G. and Finotto V. Innovation in global value chains: co-location of production and development in Italian low-tech industries, Regional Studies. Despite the spread of global value chains, recent studies suggest that disentangling tangible and intangible activities hinders innovation. Acknowledging the importance of the co-location of research and development (R&D) and manufacturing, this paper investigates the co-location rationale in three Italian industries. Drawing on a multiple case study, findings reveal that while innovation thrives on internationally dispersed functions, the execution of a specific bundle of development activities hinges on distinctive manufacturing knowledge. Evidence suggests that this innovation bundle is performed where industrial production occurs. Accordingly, this paper claims that it is the contiguity between development activities and production in manufacturing locales that ultimately supports innovation.

Suggested Citation

  • Giulio Buciuni & Vladi Finotto, 2016. "Innovation in Global Value Chains: Co-location of Production and Development in Italian Low-Tech Industries," Regional Studies, Taylor & Francis Journals, vol. 50(12), pages 2010-2023, December.
    • Handle: RePEc:taf:regstd:v:50:y:2016:i:12:p:2010-2023
    DOI: 10.1080/00343404.2015.1115010
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    1. Giacomo Becattini & Marco Bellandi & Gabi Dei Ottati & Fabio Sforzi, 2003. "From Industrial Districts to Local Development," Books, Edward Elgar Publishing, number 2884.
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    Cited by:

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    2. Eduardo Hernandez-Rodriguez, 2024. "Technological diversification through global value chains in European regions," Papers in Evolutionary Economic Geography (PEEG) 2429, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Sep 2024.
    3. Yuan, Xiaodong & Li, Xiaotao, 2021. "The evolution of the industrial value chain in China's high-speed rail driven by innovation policies: A patent analysis," Technological Forecasting and Social Change, Elsevier, vol. 172(C).
    4. Kinkel, Steffen & Baumgartner, Marco & Cherubini, Enrica, 2022. "Prerequisites for the adoption of AI technologies in manufacturing – Evidence from a worldwide sample of manufacturing companies," Technovation, Elsevier, vol. 110(C).
    5. Gyan, Sylvester & James Nyarkoh, Bright & Yeboah, Samuel, 2023. "The Dual Nature of FDI: Boosting Local Startups and SMEs While Posing Challenges," MPRA Paper 118384, University Library of Munich, Germany, revised 05 Aug 2023.
    6. Marco Bettiol & Maria Chiarvesio & Eleonora Di Maria & Stefano Micelli, 2022. "La trasformazione dei distretti industriali tra catene globali del valore e digitalizzazione," ECONOMIA E SOCIET? REGIONALE, FrancoAngeli Editore, vol. 0(1), pages 83-95.
    7. Annekatrin Niebuhr & Jan Cornelius Peters & Alex Schmidke, 2020. "Spatial sorting of innovative firms and heterogeneous effects of agglomeration on innovation in Germany," The Journal of Technology Transfer, Springer, vol. 45(5), pages 1343-1375, October.
    8. Islam, Mohammad Tarikul & Polonsky, Michael Jay, 2020. "Validating scales for economic upgrading in global value chains and assessing the impact of upgrading on supplier firms’ performance," Journal of Business Research, Elsevier, vol. 110(C), pages 144-159.
    9. Andrea Coveri & Antonello Zanfei, 2023. "The virtues and limits of specialization in global value chains: analysis and policy implications," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 50(1), pages 73-90, March.
    10. 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.
    11. Eum, Wonsub & Lee, Jeong-Dong, 2019. "Role of production in fostering innovation," Technovation, Elsevier, vol. 84, pages 1-10.
    12. Mafini Dosso & Paulina Ramirez, 2020. "Organization and geography of global R&D and innovation activities: insights from qualitative research on leading corporate R&D investors," JRC Working Papers on Corporate R&D and Innovation 2020-03, Joint Research Centre.
    13. Davide Castellani & Katiuscia Lavoratori, 2017. "Location of R&D abroad. An analysis on Global Cities," John H Dunning Centre for International Business Discussion Papers jhd-dp2017-03, Henley Business School, University of Reading.
    14. Giulio Buciuni & Gary Pisano, 2018. "Knowledge integrators and the survival of manufacturing clusters," Journal of Economic Geography, Oxford University Press, vol. 18(5), pages 1069-1089.

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