Learning from foreign market activities and inter-regional collaborations for enhanced absorptive capacity of local firms
Value Chain Maps and Capability Audits are
effective instruments for regions, cluster managers
and network coordinators in their efforts to advance
through dialogue with business, coalition building,
transfer and exchange of knowledge. Mapping global
value chain (GVCs) can assist government and
business in multiple ways – from capability audit, to
identifying new opportunities for growth, developing
innovation and investment strategies, supporting
value chain upgrade decisions, or identifying skills
gaps and developing foresight.
Mapping cross-sectoral and cross-regional value
chains for emerging sectors, technologies and
thematic prototypes enhance the knowledge of
regional stakeholders of their own capabilities and
prepares them for inter-regional collaboration.
GVC mapping is an enabler in the policy
implementation process, collecting evidence both for
the supply and the demand side in a region, and
identifying the lead business actors that can drive the
value chain integration.
The BCNED methodology for value chain mapping is
based on the use of comprehensive dataset of firms
including local SMEs, multinational enterprises and
foreign subsidiaries. Extensive firm datasets enable
the identification of industry segments and
boundaries, and critical mass of capabilities at
regional and national level. The mapping uses a
portfolio of complementary analytical techniques,
exploring inter-industry relationships and strategic
value chain groups.
Mapping of interconnected industry capabilities at
regional, national and global scale, and analysis of
global value chains is a new wave in international
business policy area. The mapping can be done in
many different ways, including conceptual chains of
value added and complex networks of value flows.
Most mappings of GVCs are illustrative and
conceptual representations, and are lacking evidence
and a comprehensive list of firms, or agglomeration of
capabilities in a region.
Strategic Value Chain Groups
Value chain mapping and capabilities audit reveal to
stakeholders cross-sectoral synergies and
complementarities that can drive innovation and
enhance capacity building, entrepreneurial
activities, strategic R&D partnerships, prioritising sectors,
structural transformation of regional
economies, optimisation of clusters, or inter-regional and intercluster linkages.
Synergies and Complementarities
Concentration of Capabilities
“One bird does not bring spring on its own”
Identifying where regions and clusters have a critical
mass is essential to build strategic
capabilities and to foster inward and outward flows of resources.
Distribution of Capabilities
Mapping of capabilities within the GVC that operate at specific locations and in specific industry segments enable localised stakeholders to learn about their strengths, critical mass, pathways to connect to internal and external stakeholders for accelerated innovation and engagement with emerging crosssectoral business opportunities.