Key Takeaways On How SMEs Can Improve Their Position in Global Value Chains

Research has shown that SMEs tend to be excluded from or locked into low-value segments of global value chains. In geographically fragmented chains, higher-value activities such as brand development and retailing can be persistently partitioned away from developing country SMEs and workers. But there are success stories. Tim Sturgeon of MIT shares key thoughts on how developing country SMEs have successfully leveraged their participation in global value chains to upgrade their capabilities and access export markets, and in some cases develop their own brands and markets independent of global buyers. This follows a session entitled, "How SMEs and Small Farmers Can Improve Their Position in Global Value Chains" at the recent USAID/E3 Engaging the Power of the Private Sector for Development training course.

Bio: Tim Sturgeon

Dr. Timothy J. Sturgeon is a Senior Research Affiliate at the Industrial Performance Center (IPC) at the Massachusetts Institute of Technology (MIT), co-organizer of the Global Value Chains Initiative. He has made significant contributions to Global Value Chain (GVC) theory and is working to improve the metrics and methods available for globalization research. Sturgeon works actively with the policymakers in international development agencies, industrialized countries, and developing countries to disseminate his insights and collaborate on actionable, effective policy responses to global integration. Sturgeon is co-editor (with Momoko Kawakami) of Local Learning in Global Value Chains: Experiences from East Asia, published by Palgrave Macmillan.