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This paper presents evidence of the importance of electronics global value chains (GVCs) in the global economy, and discusses the effects of the recent economic crisis on the industry. The analysis focuses on how information is exchanged and introduces the concept of "value chain modularity." The authors identify three key firm level actors - lead firms, contract manufacturers, and platform leaders - and discuss their development, or "co-evolution" in the context of global integration. Company, cluster, and country case studies are then presented to illustrate how supplier capabilities in various places have developed in the context of electronics global value chains. The findings identify some of the persistent limits to upgrading experienced by even the most successful firms in the developing world. Four models used by developing country firms to overcome these limitations are presented: (1) global expansion though acquisition of declining brands (emerging multinationals); (2) separation of branded product divisions from contract manufacturing (original design manufacturing (ODM) spinoffs); (3) successful mixing of contract manufacturing and branded products (platform brands) for contractors with customers not in the electronic hardware business; and (4) the founding of factory-less product firms that rely on global value chains for a range of inputs, including production (emerging factory-less start-ups).

Accessories --- Automotive --- Basic --- Codes --- Components --- Computer systems --- Computers --- Data processing --- E-Business --- Electronics --- Electronics industry --- Finance and Financial Sector Development --- Hardware --- Industry --- Information services --- Information technologies --- Information technology --- Macroeconomics and Economic Growth --- Markets and Market Access --- Microfinance --- Outsourcing --- Printed circuit boards --- Private Sector Development --- Publishing --- Semiconductors --- Systems design --- Technology Industry --- Telecommunications --- Water and Industry --- Water Resources

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This paper applies global value chain analysis to study recent trends in the global automotive industry. The authors pay special attention to the effects of the recent economic crisis on the industry in developing countries. The principal finding is that the crisis has accelerated pre-crisis trends toward greater importance of the industry in the South. More rapid growth of car ownership is the impetus, but the co-location and close interaction of suppliers and lead firms in this industry is an important catalyst. Opportunities to move up in the value chain for suppliers in emerging economies have proliferated and are likely to become even stronger now that an increasing number of new models are developed specifically for markets in developing countries. The co-location of assembly and parts plants in national and regional production systems has largely confined the impact of sales declines during the crisis to each country/region. In addition, the different development strategies followed by countries like Mexico, China, and India are slowly converging as their industries gain size and independence.

Aftermarket --- Aggregate demand --- Debt Markets --- Domestic market --- Economic Theory & Research --- Emerging market --- Emerging markets --- Finance and Financial Sector Development --- International trade --- Inventories --- Labor market --- Labor Policies --- Macroeconomics and Economic Growth --- Market share --- Markets and Market Access --- Mass market --- Microfinance --- New product development --- Purchasing --- Sale --- Sales --- Social Protections and Labor --- Substitute --- Supplier --- Suppliers --- Supply contracts --- Surplus --- World markets

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In this paper the authors apply global value chain (GVC) analysis to recent trends in the global automotive industry, with special attention paid to government interventions triggered by the recent economic crisis. The authors first highlight some of the defining characteristics of GVCs in this important industry, especially the unusually strong regional structure of production and sales. National political institutions create pressure for local content, which drives production close to end markets, where it tends to be organized nationally or regionally. They then examine policy reactions to the recent economic crisis, and provide some discussion of the government interventions in the industry. The authors end with a number of policy conclusions that highlight the likely impact of the interventions on the evolution GVCs and the growth of the industry in developing countries.

Aggregate demand --- Commodity prices --- Debt Markets --- Domestic market --- Durable goods --- Economic Theory and Research --- Emerging market --- Finance and Financial Sector Development --- Industry --- International trade --- Inventories --- Labor market --- Labor Policies --- Macroeconomics and Economic Growth --- Market share --- Markets and Market Access --- Purchasing --- Sale --- Sales --- Social Protections and Labor --- Substitute --- Supplier --- Suppliers --- Supply chain --- Surplus --- Target markets --- Total sales --- Water and Industry --- Water Resources --- World markets