Participation in global value chains, in addition to learning within global value chains in terms of access to export markets and achieving economies of scale, is important in R&D intensive industries.

The main question of our paper: In chemical industries, is there any relationship between technological capabilities and position in Global value chain?

For this purpose, an inductive quantitative method was adopted, and the variables: GVC share, Forward and backward centrality in the value chain, patents, GDP per capita, R&D expenditures, Gross capital formation, Exports of medium-hightech products, Net foreign direct investment (FD)I were estimated using panel data (76 countries over 26 years)

Technological capabilities have the greatest impact on the position in the global value chain, followed by forward centrality, which has a high influence—in other words, innovative suppliers play a pivotal role in this industry.

The positive and significant coefficient of medium- and high-tech product exports indicates that countries must pass through stages of industrial development and have a presence in global markets to enhance their position in the global value chain and increase exports.

This study, while confirming the findings of previous research—such as the importance of technology, centrality, and the role of R&D in the global value chain—employed econometric techniques and categorized countries based on their high or low participation in the chemical industry's global value chain. It identified a threshold of 4% share in the global value chain as the point where countries' roles begin to shift.

Specifically, in countries with more than a 4% share in the global value chain, the relationship between technological capability and position in the global value chain reverses. For these 11countries, a superior position in the global value chain drives the development of technological capabilities, rather than the other way around. In other words, depending on a country's share in the global value chain, a co-evolutionary relationship between technological capabilities and global value chain positioning is observed.