Global value chains and knowledge spillover to local economy in Visegrad 4 countries

Otsuka, Kozo, Natsuda, Kaoru and Csonka, László (2023) Global value chains and knowledge spillover to local economy in Visegrad 4 countries. Society and Economy, 45 (3). pp. 293-312. DOI

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This study empirically examines knowledge spillover in Visegrad Four (V4) countries, with an emphasis on global value chains (GVCs). Using patent statistics, the study aims to estimate the knowledge production function, including domestic and foreign knowledge stocks, and found that international knowledge spillover does not contribute much to the innovation of the local economy in the V4 countries because of three factors: i) multinational corporations' (MNCs) strategy to locate a low-cost production base, ii) MNCs' strategy to locate supporting (process, production or non-core product related) research and development (R&D) activities and iii) limited technology spillover effect from MNCs to local firms. Local firms in the V4 countries became dependent on the peripheral products and technologies provided by MNCs, and as a result, local R&D activities in the V4 countries were diverted from patentable innovation.

Item Type:Article
Uncontrolled Keywords:knowledge spillover, innovation, GVCs, V4, Hungary, automotive industry
JEL classification:O32 - Management of Technological Innovation and R&D
O33 - Technological Change: Choices and Consequences; Diffusion Processes
Subjects:Economic development
International relations
ID Code:8991
Deposited By: Veronika Vitéz
Deposited On:26 Sep 2023 09:43
Last Modified:26 Sep 2023 09:43

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