Integration of Developing Countries Through Innovation WTO Public Forum 13 Oct 2013 CUTSOIF By Ambassador Shree BC Servansing ACPEU TBT Progamme Brussels Introduction GVCs Not a new phenomenon but a ID: 748213
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Slide1
Global/Regional Value Chains
Integration of Developing Countries Through InnovationWTO Public Forum 1-3 Oct 2013CUTS/OIF
By Ambassador Shree B.C. Servansing
ACP-EU TBT
Progamme
BrusselsSlide2
Introduction
GVCs: Not a new phenomenon but a new analytical perspective to understand globalisation & shifts in the pattern of world trade SVEs: open and export-oriented economies Major Challenge: how can
SVEs
be
empowered to seize opportunities presented by the increased globalization of production and fragmentation of tasks? Slide3
Three Key ElementsStrategies for integrating/upgrading in
GVC’sShaping factors and entry barriers in GVC’s locationThe Importance of Innovation & Policy implications for MTS, particularly A4TSlide4
Strategies for integrating/upgrading in GVCs
Functional upgrading: improvement in the position of firms would result from increasing the range of functions performed or a change in the mix of activities performed towards higher value tasksProcess upgrading: efficiency gains by reorganizing the production system or introducing new technologiesProduct upgrading:
moving into more sophisticated product lines
Inter-chain upgrading:
using the capabilities acquired in one chain to be capitalized in another more technologically advanced chain.Slide5
Shaping factors/ entry barriers (I)
Many factors determine and shape entry: Ennabling maroeconomic environment, Good governance, Supply side constraints, Infrastucture, Investment, etcAll countries doing these things. What makes the difference? Improving Competitiveness.Foster
Innovation as a horizontal concept in Quality improvement and management
Permeates policy-making, processes in production/supply chains, products and services
OECD recommendations to its members applicable to
SVEs
also
Innovation policies
Policies to upgrade the human resource base of the economy
Policies to foster entrepreneurship and new areas of economic activity
Cluster policies and efforts at the local/regional level
Policies to enhance
attractiveness
Governance
Intellectual property rights (IPR)-related policies
Slide6
Shaping factors/ entry barriers (II)
Capacity-building and financial supportAid For Trade, an ideal vehicle Slide7
Shaping factors/ entry barriers (III)Promoting regional integration
Enhancing regional value chains Slide8
From Raw Sugar to Sugar Care Cluster Industries
SUGAR-CANE
RAW SUGAR
REFINING
DISTILLING
Bagasse
by
product
Special Sugars
White
Suger
Quality Rum
Ethanol
Co-generation
Knowledge-base
Services exports
Inputs
BASIC
UPGRADING
Crucial Elements: - Industry Alliance: Lead Firm
Sud
Sucker
- Aid-for-Trade: EDF support for Sugar Sector Reform
- Technology Transfer: Brazil
Raw Material
VALUE-ADDED