Measuring the relevance and impact of innovation and social forces for Transnational Value Chain’s embeddedness in a region

Abstract

This paper focuses on understanding and explaining TVC embeddedness with the theory of Regional Innovation Systems, Social Fields, and Qualitative Comparative Analysis, which allows us to show the sufficient and necessary conditions for TVC embeddedness in a region. A qualitative-comparative empirical study was conducted in 17 regions in the form of semi-structured, expert Focus Group Interviews. The participants were regional stakeholders, representatives of supportive regional institutions, businesses, and academia, accustomed to the regional innovation processes. The findings show that the strongest effect comes from the presence of the Support for Regional Innovativeness. The presence of Innovations and networks also have to be considered, meanwhile, when it comes to institutions, the results point out that the presence and absence of Institutional framework contribute to the Regional TVC Embeddedness. Lastly, we can also highlight the absence of Cognitive Frames, which are important for Regional TVC Embeddedness. The data presented in the paper does not separate the TIER levels. Different levels could influence the conditions for the embeddedness. Half-products that are closer to the end product tend to have higher added value and are more innovative. Based on a newly developed theory and model, which focuses on social field theory and innovation, the present paper aims to test them in real-life settings. This model explains how the social forces and innovation processes influence the company embeddedness by emphasising the necessary and sufficient conditions to have TVC embeddedness.