The impact of participation in global value chains on the globalization of innovation systems

Abstract

This paper estimates the impact of bilateral global value chain (GVC) participation on the globalization of the innovation systems for the years between 1990 and 2018. By combining the data from UNCTAD-Eora GVC, the OECD indicators of international cooperation in patents, and United States Patent and Trademark Office patent cooperation data, we make estimations employing with a type of zero-inflated negative binomial model for 101 countries. Our estimates indicate positive and significant impacts of both backward and forward GVC participations on patent cooperation. However, the backward GVC participation has negative and the forward GVC participation has positive effect on the probability of having patent cooperation. We conclude that the empirical outcomes regarding the relationship between GVC participation and globalization of innovation systems help us to understand the impacts of higher integration on national innovation systems.