Abstract
Abstract
Innovations and international trade are two driving forces of economic growth and development. Internationalisation through foreign direct investment and vertical specialisation determines the development and implementation of innovative solutions as the main factor of countries’ competitiveness and labour productivity growth. Accordingly, the study of the relationship between global value chains (GVCs) and innovation is one of the crucial research activities for scholars. For countries seeking industrialisation, GVCs are an attractive option since transnational corporations (TNCs) also transfer technologies with the transfer of production. This consequence of integration into the GVCs stimulates the innovative activity of host enterprises and determines the state policy of stimulating innovations. The topic of innovative development is highly relevant for Brazil, Russia, India, China, South Africa (BRICS) economies under the conditions of geopolitical tensions and trade wars. Among the goals settled in the Strategy for BRICS economic partnership 2025, it is important to highlight the intention of the country members to provide innovative technologies for all sectors of the economy in order to enable manufacturers to become more efficient and competitive in the global market. The paper is aimed at studying the role of countries’ involvement in GVCs for stimulation of firms’ innovative activity in the BRICS states. Given the importance of the integration into GVCs and innovations development as necessary factors of economic growth, this study acquires a particular relevance and provides empirical evidence of the relationship between the two.