Innovation and value chains
IDS' work on innovation and value chains explores opportunities for poor people to enhance their income when businesses in developing countries participate in global value chains.
IDS work on global value chains has explored how businesses in developing
countries are increasingly tied into trans-national networks of firms that coordinate the design, production and sale of products around the world. In the past four decades there has been a significant transfer of manufacturing activities to developing countries, which has created jobs. However, to increase the benefits of participation in global value chains, firms in developing countries have to acquire the capabilities to produce more sophisticated products and take on additional functions along the value chain.
The same value chain diagnostic tools and perspectives on how firms link together to produce goods can be applied in national settings to explore how to promote business linkages and expand market opportunities for poor people.
IDS work on innovation and value chains is exploring:
- Innovation in the auto and software industries of Brazil and India – In this research report, we examine whether and how the reorganisation of global value chain has led to the build-up of innovation capabilities in Brazil and India. Our work shows that substantial global shifts in innovation power are underway.
- Moving up the value chain: from production to branding – Our work on global brands from China examines how Chinese firms are acquiring branding capabilities.
- Value chain interventions and poverty reduction – We are examining the causal models underlying donor's value chain interventions and asking whether their poverty alleviation impacts have been systematically investigated.
