Correspondence: braun.erik@pte.hu
Summary of the Session’s Theme and Objectives
The structure of interactions between economic actors plays an increasingly crucial role in the functioning of national economies and global production systems. Recent shocks (COVID-19 pandemic, natural disasters, and geopolitical conflicts) have demonstrated that local disruptions in supply chains can quickly cascade and cause widespread problems globally (Lawrence et al. 2024). At the same time, countries, regions, and sectors are highly exposed to these global systems, which can both enhance and hinder development trajectories at the national and regional levels (Balland & Boschma 2024, Capello & Dellisanti 2024, Sebestyén et al. 2024, Hernández-Rodríguez et al. 2025).
Supply chains are key determinants of the growth opportunities of firms and countries. First, different stages within supply chains generate varying levels of added value, meaning that a country’s or firm’s position directly influences its developmental potential (Koch 2021). Second, the flow of information, knowledge spillover, and learning between firms can be captured through their input-output relationships (Bhattacharya et al. 2022, Cai et al. 2022, Ayerst et al. 2023, Lőrincz et al. 2024). This implies that the networks of relationships between firms determine the quantity and quality of the information and knowledge they can access, ultimately impacting their production efficiency. These investigations are particularly significant in countries with a high presence of foreign multinational companies, which typically employ advanced technologies and possess valuable global market insights. For such economies, local firms must increase the knowledge they acquire from these multinational enterprises, further strengthening economic growth.
This special session aims to collect theoretical and empirical contributions that discuss how the position that countries, regions, sectors, or firms have within supply chains shapes, enhances, or even limits their opportunities to develop new skills and competencies, innovate, or gain increased competitiveness either in the domestic or global markets. Given the strong connection of this topic to development policy, the session also welcomes contributions with a stronger policy focus.
List of Topics to Be Presented in the Special Sessios
Key References
Ayerst, S., Ibrahim, F., MacKenzie, G., & Rachapalli, S. (2023). Trade and diffusion of embodied technology: An empirical analysis. Journal of Monetary Economics, 137:128-145.
Balland, P. A., & Boschma, R. (2024). An evolutionary approach to regional development traps in European regions. Papers in Evolutionary Economic Geography, 24(20).
Bhattacharya, M., Okafor, L. E., & Pradeep, V. (2022). International firm activities, R&D, and productivity: Evidence from Indian manufacturing firms. Economic Modelling, 97:1-13.
Cai, J., Li, N., & Santacreu, A. M. (2022). Knowledge diffusion, trade, and innovation across countries and sectors. American Economic Journal: Macroeconomics, 14(1):104-145.
Capello, R., & Dellisanti, R. (2024). Smile-and-go. Regional performance through global value chains in Europe. Papers in Regional Science, 103(2):1000018.
Hernández-Rodríguez, E., Boschma, R., Morrison, A., & Ye, X. (2025). Functional upgrading and downgrading in global value chains: Evidence from EU regions using a relatedness/complexity framework. Papers in Regional Science, 104(1):100072.
Koch, P. (2021). Economic complexity and growth: Can value-added exports better explain the link? Economics Letters, 198:109682.
Lawrence, M., Homer-Dixon, T., Janzwood, S., Rockström, J., Renn, O., & Donges, J. F. (2024). Global polycrisis: the causal mechanisms of crisis entanglement. Global Sustainability, 7(e6).
Lőrincz, L., Juhász, S., & O’Szabó, R. (2024). Business transactions and ownership ties between firms. Network Science, 12(1), 1-20.
Sebestyén, T., Braun, E., & Elekes, Z. (2024). Resolving the complexity puzzle: economic complexity and positions in global value chains jointly explain economic development. Papers in Evolutionary Economic Geography, 24(1).