This paper explores the impact of government support in Mexico on the likelihood of firms achieving functional and/or inter-sectoral upgrading in global value chains (GVC). Employing a unique dataset, regression analysis was undertaken to estimate the predicted probabilities of firms upgrading in GVCs considering their regional location. The results suggest that firms located in Mexico City are more likely to achieve functional upgrading vis-à-vis northern firms. Additionally, the presence of an R&D laboratory is crucial if firms are to engage in upgrading. There was no evidence that government support affects the likelihood of firms achieving functional and/or inter-sectoral upgrading.
Bibliographical noteThis is an Accepted Manuscript of an article published by Taylor & Francis in Regional studies on 30/11/2016], available online: http://www.tandfonline.com/10.1080/00343404.2016.1245414
- business innovation policy
- upgrading in global value chains