Production networks and innovation in the semi-periphery: the transition to electric vehicles in South Korea and Spain

Garcia Calvo, A. ORCID: https://orcid.org/0000-0001-8163-1637 (2024) Production networks and innovation in the semi-periphery: the transition to electric vehicles in South Korea and Spain. Studies in Comparative International Development. ISSN 0039-3606 doi: 10.1007/s12116-024-09436-0

Abstract/Summary

What determines the ability of firms based in New Advanced Economies to generate innovation in the transition to electric vehicles (EVs)? Under what conditions are they more likely to break with their established pattern as fast followers to create innovation that is new to the world? To address these questions, we introduce a meso-level framework focused on the organization of global production networks. The framework examines three aspects of such networks: the position of the firm within the network, the number of lead firms, and the links between lead firms and suppliers. We illustrate the explanatory power of our framework through the cases of South Korea and Spain, the two New Advanced Economies with the largest automotive sectors. We characterize Korea’s production network as a unipolar, captive structure and Spain’s as part of an EU-wide multipolar, modular production network. We argue that contrary to common perceptions, Korea’s structure delayed the transition to EV’s and strengthened Korea’s role as a fast follower. Meanwhile, Spain’s embeddedness in the EU production network offered significant opportunities for turnkey suppliers to generate novel innovation despite the absence of a domestic lead firm.

Item Type	Article
URI	https://reading-clone.eprints-hosting.org/id/eprint/118447
Identification Number/DOI	10.1007/s12116-024-09436-0
Refereed	Yes
Divisions	Henley Business School > International Business and Strategy
Publisher	Springer New York
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