Greening Global Value Chains: Innovation and the International Diffusion of Technologies and Knowledge

19 Pages Posted: 20 Apr 2016

See all articles by Matthieu Glachant

Matthieu Glachant

MINES ParisTech

Damien Dussaux

Mines-Paristech

Yann Meniere

Mines-Paristech

Antoine Dechezlepretre

London School of Economics & Political Science (LSE)

Date Written: May 1, 2013

Abstract

Using novel data on patents, trade of equipment goods, and foreign direct investments and insights from the economic literature, the paper seeks to lay out the state of knowledge on the role of innovation and the diffusion of technologies in the greening of global value chains as well as some of the main policy issues. A special emphasis is put on developing countries -- distinguishing emerging economies and least-developed countries -- and on climate-mitigation technologies. Emerging economies are already reasonably well integrated in the global economy. As a consequence, technologies flow in through the imports of capital goods and local investments by multinational enterprises owning technologies. Pushing further technology transfer requires strengthening intellectual property rights, lowering barriers to trade and investments and improving technological absorptive capacities. In contrast, their role in innovation is limited. Standard tools of innovation policy - public research and development, public support to private research and development, better access to finance - should develop. But studies also suggest that governments should introduce more stringent environmental policies with proper enforcement at home to go beyond the adoption of foreign technologies. The situation of least-developed countries is very different: they do not import green technologies and low barriers to trade and foreign direct investment or strict intellectual property rights are unlikely to trigger technology transfer. In these countries, the focus should be on building technological capacities.

Keywords: Environmental Economics & Policies, Technology Industry, ICT Policy and Strategies, E-Business, Climate Change Mitigation and Green House Gases

Suggested Citation

Glachant, Matthieu and Dussaux, Damien and Meniere, Yann and Dechezlepretre, Antoine, Greening Global Value Chains: Innovation and the International Diffusion of Technologies and Knowledge (May 1, 2013). World Bank Policy Research Working Paper No. 6467. Available at SSRN: https://ssrn.com/abstract=2272536

Matthieu Glachant

MINES ParisTech ( email )

60, boulevard Saint Michel
75272 Paris cedex 06, 75006
France
+33 1 40 51 9229 (Phone)

Damien Dussaux

Mines-Paristech

60 Boulevard Saint-Michel
Paris, 75272
France

Yann Meniere

Mines-Paristech ( email )

60 Boulevard Saint-Michel
Paris, 75272
France

Antoine Dechezlepretre

London School of Economics & Political Science (LSE)

Houghton Street
London, WC2A 2AE
United Kingdom

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