The effect of industrial policy on participation in global value chains: science, technology and innovation policies in product complexity

With the emergence of Global Value Chains and the participation of countries in these chains, new discussions of industrial policy were formed. One of the main tools of industrial policy that leads to the presence and participation in GVCs is the adoption of science, technology and innovation policies. Based on the studies, product complexity, technology absorption and research and development activities indicators are among the most important indicators related to this policy. Examining the adoption of this policy on participation in GVCs in the framework of the GMM is one of the main goals of this article. To estimate the model, panel data for the years 2008-2020, a sample of 161 countries, has been used by the method of generalized moments. The results show that the adoption of science, technology and innovation policies in the framework of industrial policies increases the participation of countries in GVCs. Therefore, based on the results of the research, it is necessary for countries, while prioritizing their development programs to increase participation and stabilization in GVCs, through the integration of science, technology and innovation policy to research and development activities, absorption of technology and product complexity. In addition, incentive policies such as investing in research and development, resource allocation and creating mechanisms for the development of technology absorption in the agenda of their programs.