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This paper presents a critical review of the global value chain (GVC) literature in light of the “technological capabilities” approach to innovation in less-developed countries (LDCs). Participation in GVC is beneficial for firms in LDCs, which are bound to source technology internationally. However, the issues of learning and technological efforts at the firm level remain largely hidden in the GVC literature. We propose a shift in the empirical and theoretical agenda, arguing that research should integrate the analysis of the endogenous process of technological capability development, including specific firm-level efforts, and of the mechanisms allowing knowledge to flow within and between different global value chains into the GVC literature.

The aim of this article is to analyse the nature and extent of knowledge and information networks in an Italian wine cluster. Moreover, the relation between firms' characteristics and the knowledge network structure is also explored. The empirical findings show that knowledge is unevenly distributed in clusters and that networks of knowledge and information differ a great deal in terms of their structure. In fact, knowledge flows are restricted to a tightly connected community of local producers, differing in terms of knowledge assets, innovation behaviour and overall economic performance with respect to the rest of the firms in the cluster.

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This paper investigates the geography of multinational corporations' investments in the EU regions. The 'traditional' sources of location advantages (i.e. agglomeration economies, market access and labour market conditions) are considered together with innovation and socio-institutional drivers of investments, captured by means of regional 'social filter' conditions. This makes it possible to empirically assess the different role played by such advantages in the location decision of investments at different stages of the value chain and disentangle the differential role of national vs. regional factors. The empirical analysis covers the EU-25 regions and suggests that regional socioeconomic conditions are crucially important for the location decisions of investments in the most sophisticated knowledge-intensive stages of the value chain.

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