Leveraging innovation and global value chains participation for industrialization: An agenda for research in Africa

This paper examines the intricate relationship between innovation and Global Value Chain (GVC) participation, with a focus on Africa's increased integration into global networks. The study underscores the importance of National Innovation Systems (NIS) in fostering technological advancements and highlights the potential of GVCs to drive industrialization in African countries. Despite challenges like inadequate R&D infrastructure, limited financing, and human capital gaps, African nations have opportunities to leverage innovation for improved GVC integration. Using a systematic search and review methodology, the paper critically evaluates existing literature on innovation and GVCs, drawing lessons for Africa for improved GVC integration. It identifies key themes related to innovation, GVCs, and industrialization, emphasizing the role of both government and firms in facilitating successful GVC participation. The study suggests that strategic government interventions, such as coherent industrial policies and investment in quality infrastructure, are essential for GVC integration. Additionally, it advocates for African firms to adopt proactive strategies, including technology upgrading and export activities, to enhance their competitiveness in global markets. The paper concludes by highlighting the need for cross-border collaboration and regional integration to strengthen innovation capabilities and support sustained economic growth in Africa.