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Do global value chains and local capabilities matter for economic complexity in EU regions?

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  • Boschma, Ron
  • Hernández-Rodríguez, Eduardo
  • Morrison, Andrea
  • Pietrobelli, Carlo

    (RS: GSBE other - not theme-related research, Mt Economic Research Inst on Innov/Techn)

Abstract

This paper combines insights from the literatures on Global Value Chains (GVC), Economic Complexity and Evolutionary Economic Geography to assess the role of GVC participation and regional capabilities in fostering economic complexity in EU NUTS-2 regions. Our results suggest there is no such thing as a common path towards economic complexity across EU regions. Low-income regions manage to benefit from both regional capabilities and GVC participation. In contrast, high-income regions rely more on their existing local capabilities rather than on GVC participation.

Suggested Citation

  • Boschma, Ron & Hernández-Rodríguez, Eduardo & Morrison, Andrea & Pietrobelli, Carlo, 2025. "Do global value chains and local capabilities matter for economic complexity in EU regions?," MERIT Working Papers 2025-002, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2025002
    DOI: 10.53330/BAGR7168
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    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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