This paper aims to identify factors that determine functional specialisation (FS) in global value chains (GVCs) in European Union countries. We focus on fabrication and R&D as two opposite business functions in terms of their character and their potential of creating value-added. To make our...

Geographically dispersed production networks have allowed countries to specialise in different functions of the value chain. By making use of two methodologies for quantifying the magnitude of functional specialisation - one based on trade flows and one based on FDI flows - detailed profiles of...

Functional specialisation in global value chains is a complex phenomenon. This paper examines the determinants of functional specialisation patterns in EU countries, focusing on the business functions fabrication and research and development. The core result of the study is that lower wages...