High technology sectors’ participation in downstream GVC: case of Baltic region

Abstract

The concept of global value chains (GVC) is elaborated by the scientists and applied by practices in the fields of management, economics and politics. Contemporary due to the globalization of the creation, production and consumption process the boundaries between national, regional and international innovation systems becoming fuzzy. This phenomenon is not extensively explored consequently it encouraged to investigate GVC at sectoral level highlighting the high technology sectors’ peculiarities of the downstream he article is addressed to underline the relevance of GVC approach and empirically observe the trends of high technology sectors’ fragmentation and shifts of downstream value added in Baltic region countries. The high technology sectors are distinct due to high rate of investments to R&D, therefore the decomposition of the high technology sector’s value added to local and foreign consumption is appropriate. The empirical research is accomplished by comparative investigation of high technology sectors in the Baltic Region countries and based on longitudinal World Input Output Data (WIOD) available for the period from 2000 till 2014. The descriptive and predictive statistical methods were applied exploring proposed indicators for the investigation the dynamics of high technology sectors’ downstream value added distribution within GVC. It enabled to compare the high technology sectors in Baltic region countries and to develop predictive models for distinct high technology sectors. The findings could be applied to examine the international business environment trends at sectoral level.