The Co-evolution of Technological Capabilities and Global Value Chain Position in Chemical Industries

Ghazinoori, Soroush; Goodarzi, Mehdi; Moosavi Madani, Saeed

doi:10.22034/jokog.2025.510213.1068

The Co-evolution of Technological Capabilities and Global Value Chain Position in Chemical Industries

Document Type : Original Article

Authors

Soroush Ghazinoori ¹

Mehdi Goodarzi ¹

Saeed Moosavi Madani ²

¹ Assocciate Professor, Technology Management, Allameh Tabataba’i University, Tehran, Iran

² Ph.D. Student, Technology Management, Allameh Tabataba’i University, Tehran, Iran.

10.22034/jokog.2025.510213.1068

Abstract

Participation in global value chains (GVCs), particularly in industries based on medium and high technologies, not only provides access to export markets and achieves economies of scale but also facilitates technological learning and the development of innovation capabilities. Accordingly, the present study investigates the relationship between technological capabilities and the position of countries in the global value chain of the chemical industry. To this end, using panel data econometric methods and correlation analysis, data from 76 countries over a 26-year period were examined. The research variables included countries' shares in the global value chain of the chemical industry, forward and backward centrality, number of registered patents, GDP per capita, R&D expenditures, gross capital formation, exports of medium- and high-tech products, and net foreign direct investment.
The results showed that technological capabilities have the greatest impact on improving countries' positions in the global value chain of the chemical industry, followed by forward centrality, which also has a strong effect—indicating that innovative suppliers play a pivotal role in this industry. Furthermore, the positive and significant coefficient of exports of medium- and high-tech products suggests that improving a country's position in the global value chain requires passing through specific stages of industrial development and active participation in global markets.
While confirming the findings of previous studies on the importance of technology, R&D, and network structure in global value chains, this study identified a threshold of 4 percent share of the global value chain by disaggregating countries based on their share in the chemical industry's GVC. The findings revealed that in countries with a share above this threshold, the relationship between technological capabilities and GVC position reverses, such that it is the superior GVC position that drives the development of technological capabilities. Consequently, a kind of co-evolution between technological capabilities and countries' positions in the global value chain can be observed.

Keywords

Co-evolution

technological capability

chemical industry

global value chain

GVC centrality

Subjects