We show that traditional gravity variables play a significant role in explaining trade flows related to global value chain participation. We find evidence that cooperation costs - measured by linguistic and geographical proximity - are more relevant for trade that reflects cross-border...

In recent years, firms have considerably decentralized their research and development (R&D) activities. Subsidiaries of foreign multinational enterprises (MNEs) are now among the top performers of R&D in many EU and non-EU countries. Specifically, MNE affiliates account for around 20% of total...