Regional upgrading within the automobile industry global value chain: The role of the domestic firms and institutions

Under the global value chain (GVC) approach, a geographical model can be defined based on added value and knowledge content of production activities, and technology generation of regions. An original comparative analysis of two regions with different statuses in different automobile geographical production systems is used to identify the relevant elements in regional upgrading. The size, the position on the first level of the value chain, the decision-making power in the distribution and coordination of production activities and the capacity for technological innovation of domestic firms are key. The impact of institutions in regional upgrading also depends on the performance of their innovation infrastructures and public policy for the development of domestic firms. © 2020 Inderscience Enterprises Ltd.