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T20 Indonesia 2022 Policy Brief: Global Value Chain Inclusivity And Digital Entrepreneurship

Author

Listed:
  • Erkko Autio

    (Imperial College)

  • Mohamad D. Revindo

    (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI))

  • Yothin Jinjarak

    (Asian Development Bank)

  • Éva Komlósi

    (Faculty of Business and Economics, University of Pécs)

  • Donghyun Park

    (Asian Development Bank)

  • Cynthia Petalcorin

    (Asian Development Bank)

  • Dandy Rafitrandi

    (Centre for Strategic and International Studies/CSIS)

  • Yoshua Caesar Justinus

    (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI))

  • Willem Smit

    (Asia School of Business, Fulbright University Vietnam)

  • László Szerb

    (Faculty of Business and Economics, University of Pécs)

  • Shu Tian

    (Asian Development Bank)

  • Mónika Tiszberger

    (Faculty of Business and Economics, University of Pécs)

Abstract

The speed of digitalisation is accelerating, but not everywhere at the same pace. Widening digital divides, between and within countries, may disproportionally harm local small and medium sized enterprises (SMEs) in digitally lagging host markets. Without proper policies, these actors, important for their local economies, could be denied access, dismissed from or downgraded in their participation in digitalised global value chains (GVCs). This policy brief reviews the literature and analyses entrepreneur-level, national-level and international trade-dyadic data to provide 11 evidence-based policy recommendations aimed at enhancing GVC inclusivity through (1) supra-national level alignment, (2) country-level policy adjustments and (3) firm-level interventions to stimulate digital entrepreneurship among SMEs.

Suggested Citation

  • Erkko Autio & Mohamad D. Revindo & Yothin Jinjarak & Éva Komlósi & Donghyun Park & Cynthia Petalcorin & Dandy Rafitrandi & Yoshua Caesar Justinus & Willem Smit & László Szerb & Shu Tian & Mónika Tiszb, 2022. "T20 Indonesia 2022 Policy Brief: Global Value Chain Inclusivity And Digital Entrepreneurship," T20 Indonesia 2022 Policy Brief 202201, LPEM T20 Indonesia, revised Jan 2022.
    • Handle: RePEc:lpe:t20ina:202201
    as

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    References listed on IDEAS

    as
    1. Jason Dedrick & Kenneth L. Kraemer & Greg Linden, 2010. "Who profits from innovation in global value chains? A study of the iPod and notebook PCs," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 19(1), pages 81-116, February.
    2. Liena Kano & Eric W. K. Tsang & Henry Wai-chung Yeung, 2020. "Global value chains: A review of the multi-disciplinary literature," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 577-622, June.
    3. Rhys Jenkins, 2004. "Globalization, production, employment and poverty: debates and evidence," Journal of International Development, John Wiley & Sons, Ltd., vol. 16(1), pages 1-12.
    4. Kizu, Takaaki. & Kühn, Stefan. & Viegelahn, Christian,, 2016. "Linking jobs in global supply chains to demand," ILO Working Papers 994934992802676, International Labour Organization.
    5. Liena Kano & Eric W. K. Tsang & Henry Wai-chung Yeung, 2020. "Correction to: Global value chains: A review of the multi-disciplinary literature," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(8), pages 1353-1353, October.
    6. Javier López González & Marie-Agnes Jouanjean, 2017. "Digital Trade: Developing a Framework for Analysis," OECD Trade Policy Papers 205, OECD Publishing.
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    Keywords

    gvc — t20 — global value chain — digital entrepreneurship — smes — small and medium sized enterprises;

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