What the study found
The study found that product innovation and process innovation are both strongly associated with firm participation in global value chains (GVCs), meaning cross-border production networks. The results also differed by firm size and ownership structure.
Why the authors say this matters
The authors conclude that innovation may help firms in developing countries not only join GVCs but also potentially move up the value chain. They say policies that foster innovation are fundamental development strategies for inclusive growth and long-term sustainability.
What the researchers tested
The researchers examined whether innovation affects firms' participation in GVCs using panel data from the World Bank Enterprise Surveys from 2005 to 2023. They analyzed the relationship with a probit model, a statistical method used for binary outcomes.
What worked and what didn't
Both product and process innovations were found to strongly contribute to firm participation in GVCs. The results were described as robust across alternative measurements and different model specifications, and they varied across firm size and ownership structure.
What to keep in mind
The abstract does not describe detailed limitations beyond noting that evidence has been underexplored, especially in Vietnam. The summary available here does not provide information on causal identification beyond the reported associations.
Key points
- Product innovation and process innovation were both strongly associated with GVC participation.
- The analysis used World Bank Enterprise Survey panel data from 2005 to 2023.
- Results were robust across alternative measurements and model specifications.
- Effects differed by firm size and ownership structure.
- The authors say innovation may help firms move up the value chain.
Disclosure
- Research title:
- Innovation is linked to greater GVC participation in Vietnam
- Authors:
- Mary Hoang, Nghiem Ba Bui, Hoa Phuong Le, Thao Pham, Van Chung Dong
- Institutions:
- Foreign Trade University, Hanoi University of Industry, Ministry of Industry and Trade, Vietnam Academy of Social Sciences, Vietnam National University, Hanoi, Vietnam National University, Hanoi
- Publication date:
- 2026-02-05
- OpenAlex record:
- View
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