GVC-Oriented Policies and Urban Manufacturing: The Role of Cities in Global Value Chains

Abstract

Studies on policies oriented to Global Value Chains (GVC) focus much attention on developing countries and upgrading opportunities. Recent trends related to digitalization, market requests, and new consideration for value linked to manufacturing challenges GVC-oriented policies in developed countries. Such policies may refer to the attractiveness of foreign investments or increase the value captured through upgrading. At the city level, explicit policies promoted by municipalities are oriented to attract and support manufacturing activities to increase employment, entrepreneurship, and urban specializations while leveraging the new technological scenario. However, despite their interests in policies for economic growth at the national and cluster levels, research on the Global Value Chain has paid limited attention to cities and their role as production contexts within value chains. Linking to research on urban manufacturing and based on an empirical study on six cities (Barcelona, Detroit, London, Milan, New York, and Paris), the paper advances the theoretical debate on urban-related policies in the GVC framework by proposing three different policy directions related to (a) enhancing value related to urban production; (b) sustaining new urban entrepreneurship (digital craftsmanship); and (c) shortening GVC (Urban Value Chains).