Innovation,
Global Value Chains,
and Globalization
Measurement
_____
Constance F. Citro, Gail E. Cohen,
and Sean H. Strunk, Rapporteurs
Innovation Policy Forum
Board on Science, Technology, and Economic Policy
Policy and Global Affairs
Committee on National Statistics
Division of Behavioral and Social Sciences and Education
Proceedings of a Workshop
NATIONAL ACADEMIES PRESS 500 Fifth Street, NW, Washington, DC 20001
This activity was supported by contracts between the National Academy of Sciences and the National Science Foundation (NCSE-1923018). Any opinions, findings, and conclusions, or recommendations expressed in this publication do not necessarily reflect the views of any organization or agency that provided support for the project.
International Standard Book Number-13: 978-0-309-27795-2
International Standard Book Number-10: 0-309-27795-7
Digital Object Identifier: https://doi.org/10.17226/26477
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Suggested citation: National Academies of Sciences, Engineering, and Medicine. 2022. Innovation, Global Value Chains, and Globalization Measurement: Proceedings of a Workshop. Washington, DC: The National Academies Press. https://doi.org/10.17226/26477.
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PLANNING COMMITTEE FOR THE WORKSHOP ON INNOVATION, GLOBAL VALUE CHAINS, AND GLOBALIZATION MEASUREMENT
(Affiliations as of May 2021)
SUSAN HELPER (Cochair), Case Western Reserve University
WOLFGANG KELLER (Cochair), University of Colorado Boulder
NADIM AHMAD, OECD Centre for Entrepreneurship, SMEs, Regions and Cities
DAVIN CHOR, Dartmouth College
EDUARDO MORALES, Princeton University
ANDREAS MOXNES, University of Oslo
JUSTIN R. PIERCE, Federal Reserve Board
KELLY SIMS GALLAGHER, Tufts University
SARAHELEN THOMPSON, Bureau of Economic Analysis (retired)
PROJECT STAFF
GAIL COHEN, Senior Director, Board on Science, Technology, and Economic Policy (STEP)
SOPHIE BILLINGE, Senior Project Assistant, STEP Board (through June 2022)
CONSTANCE F. CITRO, Senior Scholar, Committee on National Statistics
DAVID DIERKSHEIDE, Program Officer, STEP Board
SEAN STRUNK, Consultant
INNOVATION POLICY FORUM
THOMAS GUEVARA (Cochair), Indiana University
DAVID M. HART (Cochair), George Mason University
WILLIAM B. BONVILLIAN, Massachusetts Institute of Technology
E. WILLIAM COLGLAZIER, American Association for the Advancement of Science
FRANK DIGIAMMARINO, Booz Allen Hamilton
MARYANN P. FELDMAN, Arizona State University
ANDRE GUDGER, Eccalon
KATHLEEN N. KINGSCOTT, IBM Research
MICHAEL F. MOLNAR (Ex Officio Member), National Institute of Standards and Technology
MICHAEL RUSSO, National Institute for Innovation and Technology
BOARD ON SCIENCE, TECHNOLOGY, AND ECONOMIC POLICY
ADAM B. JAFFE (Chair), Brandeis University
NOËL BAKHTIAN, Lawrence Berkeley National Laboratory
JEFF BINGAMAN, Former U.S. Senator, New Mexico
BRENDA J. DIETRICH (NAE), Cornell University
BRIAN G. HUGHES, HBN Shoe, LLC
PAULA E. STEPHAN, Georgia State University
SCOTT STERN, Massachusetts Institute of Technology
JOHN C. WALL (NAE), Cummins, Inc. (Retired)
JOHN L. ANDERSON (NAE) (Ex Officio Member), National Academy of Engineering
VICTOR J. DZAU (NAM) (Ex Officio Member), National Academy of Medicine
MARCIA MCNUTT (NAS/NAE) (Ex Officio Member), National Academy of Sciences
STAFF
GAIL COHEN, Director
SOPHIE BILLINGE, Senior Project Assistant (through June 2022)
DAVID DIERKSHEIDE, Program Officer
CLARA SAVAGE, Financial Officer
COMMITTEE ON NATIONAL STATISTICS
ROBERT M. GROVES (Chair), Office of the Provost, Georgetown University
LAWRENCE D. BOBO, Department of Sociology, Harvard University
ANNE C. CASE, School of Public and International Affairs, Princeton University, Emeritus
MICK P. COUPER, Institute for Social Research, University of Michigan
DIANA FARRELL, JPMorgan Chase Institute, Washington, DC
ROBERT GOERGE, Chapin Hall at the University of Chicago
ERICA L. GROSHEN, School of Industrial and Labor Relations, Cornell University
HILARY HOYNES, Goldman School of Public Policy, University of California-Berkeley
DANIEL KIFER, Department of Computer Science and Engineering, The Pennsylvania State University
SHARON LOHR, School of Mathematical and Statistical Sciences, Arizona State University, Emerita
JEROME P. REITER, Department of Statistical Science, Duke University
JUDITH A. SELTZER, Department of Sociology, University of California-Los Angeles,
C. MATTHEW SNIPP, School of the Humanities and Sciences, Stanford University
ELIZABETH A. STUART, Department of Mental Health, Johns Hopkins Bloomberg School of Public Health
BRIAN HARRIS-KOJETIN, Director
MELISSA CHIU, Deputy Director
CONSTANCE F. CITRO, Senior Scholar
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Acknowledgments
A planning committee operating under the auspices of the Innovation Policy Forum of the Board on Science, Technology, and Economic Policy, in collaboration with the Committee on National Statistics, convened the workshop, “Innovation, Global Value Chains, and Globalization Measurement” in May 2021. These proceedings are the main product of the workshop. They were prepared by rapporteurs whose charter was to distill the gist of the presentations and the essence of the discussions. The planning committee’s role was limited to planning and convening the workshop. The views contained in the proceedings are those of individual workshop participants and do not necessarily represent the views of all workshop participants, the planning committee, or the National Academies of Sciences, Engineering, and Medicine.
This Proceedings of a Workshop was reviewed in draft form by individuals chosen for their diverse perspectives and technical expertise. The purpose of this independent review is to provide candid and critical comments that will assist the National Academies of Sciences, Engineering, and Medicine in making each published proceedings as sound as possible and ensure that it meets the institutional standards for quality, objectivity, evidence, and responsiveness to the charge. The review comments and draft manuscript remain confidential to protect the integrity of the process.
We thank the following individuals for their review of this proceedings: Nadim Ahmad, Organisation for Economic Co-operation and Development; Thomas Guevara, Indiana University; Andrew Reamer, The George Washington University; Dominic Smith, U.S. Department of Labor.
Although the reviewers listed above provided many constructive comments and suggestions, they were not asked to endorse the content of the proceedings nor did they see the final draft before its release. The review of this proceedings was overseen by Evan Johnson, University of North Carolina. He was responsible for making certain that an independent examination of this proceedings was carried out in accordance with the standards of the National
Academies and that all review comments were carefully considered. Responsibility for the final content rests entirely with the rapporteurs and the National Academies.
THE INNOVATION POLICY FORUM
The Innovation Policy Forum acts as a focal point for national and international dialogue on innovation policy. Operating under the guidance of the Board on Science, Technology, and Economic Policy, the forum brings together representatives of government, industry, national laboratories, research institutes, and universities—foreign and domestic—to exchange views on current challenges and opportunities for U.S. innovation policy. The forum provides a platform for learning about the goals, instruments, funding levels, and results of national and regional programs and for discussing their lessons for U.S. policy. The workshop described in this proceedings is one of a series of workshops and discussions convened by the Innovation Policy Forum since 2012.
Contents
2 MULTINATIONAL FIRMS AND GLOBAL INNOVATION
4 TRADE IN SERVICES, INTANGIBLE CAPITAL, AND THE PROFIT-SHIFTING HYPOTHESIS
5 TALENT, GEOGRAPHY, AND OFFSHORE R&D
6 THE NATURE AND DIRECTION OF INNOVATION IN GLOBAL VALUE CHAINS FOR WIND-ENERGY TECHNOLOGIES
9 CREATION AND DIFFUSION OF KNOWLEDGE IN THE GLOBAL FIRM
10 FIRM SELECTION AND ORGANIZATIONAL CHOICE: COMPLEX PATTERNS OF GLOBAL SOURCING
11 ARE CUSTOMS RECORDS CONSISTENT ACROSS COUNTRIES?
12 CAPITAL FLOWS IN GLOBAL VALUE CHAINS
13 COLOCATION OF PRODUCTION AND INNOVATION: EVIDENCE FROM THE UNITED STATES
14 GLOBAL VALUE CHAIN MEASUREMENT METHODOLOGY: CHALLENGES AND PROSPECTS
15 LESSONS FROM THE WORKSHOP: A PANEL DISCUSSION
B Biographies of Speakers and Planning Committee Members
C Crosswalk of Workshop Papers to Measurement and Understanding of Global Value Chains
