Research on vertical structure evolution of global value chain & enterprise innovation

This paper studies the vertical labor division structure evolution laws of global value chain and the impact of its change on enterprise innovation investment. In the case of free market entry, the vertical labor division structure of GVC will undergo dynamic and spontaneous evolution. During the different stages of industrial development, the changes of market demand and entry barriers promoted the evolution of GVC vertical labor division structure. The vertical structure of GVC will accelerate to evolve into the situation that strategic links are monopolized by a few oligopolies. The oligopolistic firms will have stronger incentives to innovate, while the other vertically related firms will have fewer incentives to innovate. The difference between enterprises´ innovation capacity in different links of GVC will be expanded, and the benefits distribution will become more uneven.