Leveraging Global Value Chains for innovation and industrialization in Africa

The global nature of innovation has led to the emergence of Global Innovation Networks (GINs) and Global Value Chains (GVCs), facilitating knowledge exchange and economic activities across borders. GVCs offer platforms for accessing external knowledge and fostering innovation. They have evolved through three eras of innovation models: the Linear and Closed Model (LCM), the Interactive and Closed Model (ICM), and the Interactive and Open Model (IOM). The IOM emphasizes open innovation principles, intersecting with GINs and GVCs. Lessons from East Asian and Latin American countries highlight strategic practices for GVC integration, focusing on export-oriented industrialization, education, technology policies, infrastructure, and SME support. In Africa, GVC engagement spans agriculture, manufacturing, and services sectors, driving economic growth, job creation, and technological advancements. To advance GVC participation in Africa, a research agenda, policy directions, and action plans are proposed. The research agenda emphasizes GVC governance, value addition, sustainability, innovation, and regional integration. Policy directions focus on infrastructure development, trade facilitation, SME support, human capital development, and promoting sustainable and inclusive growth. African businesses are encouraged to conduct value chain mapping, form strategic partnerships, embrace technology, ensure quality assurance, invest in capacity building, and diversify markets to leverage the potential of GVCs for economic transformation and global competitiveness.