Subcontracting and Supplier Innovativeness in a Developing Economy: Evidence from China's Information and Communication Technology Industry

Sun Y., Zhou Y., Lin G. C. S. and Wei Y. H. D. Subcontracting and supplier innovativeness in a developing economy: evidence from China's information and communication technology industry, Regional Studies. This study critically evaluates the relevance of the global value chains theory against the actual practices of subcontracting and technological innovation in China based on a large-scale empirical firm survey in the information and communication technology industry. The results suggest that the impact of subcontracting depends on local suppliers' absorptive capabilities; that the impact of global value chains on local technology upgrading is not linear; and an overdependence on subcontracting for the global market could hurt technological innovation.