An evolutionary approach to regional studies on global value chains

An evolutionary approach to regional studies on global value chains

02 Apr 2024 | Ron Boschma
This paper explores the integration of evolutionary economic geography (EEG) and global production networks (GPN) to develop a theoretical-analytical approach for studying regional studies on global value chains (GVCs). The author, Ron Boschma, aims to enhance understanding of how regions develop and upgrade GVCs, as well as why they may experience the loss or downgrading of existing GVCs. The approach combines concepts from relatedness, economic complexity, and regional diversification to assess the ability of regions to develop new GVCs and upgrade existing ones. The paper discusses the importance of relatedness between industry functions and the complexity of these functions in determining the potential for regional development. It also highlights the role of institutions and geopolitical developments in shaping GVC dynamics. The framework is proposed to address issues such as uneven development, regional diversification, and the dark side of GVCs, providing insights for policy-making and regional innovation strategies.This paper explores the integration of evolutionary economic geography (EEG) and global production networks (GPN) to develop a theoretical-analytical approach for studying regional studies on global value chains (GVCs). The author, Ron Boschma, aims to enhance understanding of how regions develop and upgrade GVCs, as well as why they may experience the loss or downgrading of existing GVCs. The approach combines concepts from relatedness, economic complexity, and regional diversification to assess the ability of regions to develop new GVCs and upgrade existing ones. The paper discusses the importance of relatedness between industry functions and the complexity of these functions in determining the potential for regional development. It also highlights the role of institutions and geopolitical developments in shaping GVC dynamics. The framework is proposed to address issues such as uneven development, regional diversification, and the dark side of GVCs, providing insights for policy-making and regional innovation strategies.
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