Intangible Assets and Participation in Global Value Chains: An Analysis on a Sample of European Countries

This paper investigates the role of intangible assets as factors influencing participation in global value chains (GVC). We distinguish between different forms of participation in GVC entailing a different degree of capability to generate value added domestically and we examine how different intangibles affect countries’ engagement in GVC and the reaping of benefits from such participation. The data cover 11 European countries in manufacturing and services over the period 1995- 2011. We find that investing in intangible assets favours participation in GVC and contributes to value appropriation along the chain. Moreover, different intangible assets contribute differently to forward and backward participation.