This paper uses European firm-level survey data to provide some robust empirical evidence that suppliers engaged in production to order (PTO) for foreign firms are more likely to introduce product innovations than those engaged in PTO for domestic firms, even when differences in size, R&D and...

Economic globalisation has given rise to two types of networks that stretch out across OECD and emerging economies. At the one side, global value chains (GVCs) can be thought of as the “material” transfers of goods and services (final as well as intermediate) across borders. At the other...