Liza Jabbour (University of Birmingham)
The environmental impact of GVCs and the sustainability of production process have received increasing attention in the media and the academic literature. There is increasing pressures, from customers and legislators, on lead firms to take responsibility for the environmental implications of the value-chains of the products they sell. It is believed that green innovation (GI) is one of the main methods to make GVCs greener.
The aim of this paper is to assess the impact of GVC links on the international co-innovation of green technologies. The literature on GI highlights the need for collaboration to develop green technologies (De Marchi, 2012; Horbach et al., 2012). Furthermore, transnational technical cooperation facilitates technology transfer (Duan et al., 2010; Audretsch et al., 2014), and global green technological collaboration are expected to promote green technology transfer and information sharing (Lema & Lema, 2012). Therefore, in light of the 2030 Agenda for Sustainable Development and the Paris Agreement on Climate Change, enhancing global collaboration can help countries green the value chains and achieve the Sustainable Development Goals.
International co-innovations are defined as those innovations having more than one inventor, and the inventors declare residence in different countries. To study international co-innovation, we collected patent-based data from the PATSTAT database. We classify patent families as green or non-green according to the International Patent Classification (IPC) codes.
We estimate a gravity model using PPML with three-way fixed effects. PPML regressions are applied when the dependent variable has many non-negative data points with many zeros (Correia et al., 2020), which is the case when measuring co-inventions between countries.
GVCs related variables include the total exports of intermediate products and final products, the total gross exports, the origin value added embodied in foreign exports, the domestic value-added (DVA) content of gross exports and DVA embodied in foreign final demand. These variables are from the OECD TiVA database. These variables reflect how domestic countries (upstream in a value chain) are connected to the downstream countries in global value chains, even when no direct trade relationship exists (Miller & Blair, 2009).
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