1、 APEC Policy Support Unit POLICY BRIEF No.49 September 2022 Digital Technology and Global Integration:Opportunities for Innovative Growth By Wang Yun-Chieh,Nguyen Thu Quynh and Akhmad Bayhaqi KEY MESSAGES The development and adoption of Fourth Industrial Revolution(4IR)technologies can help economie

2、s upgrade their participation in global value chains(GVCs)by improving production efficiency,creating new and better products and services,and enabling technological upgrading.The APEC region contributes around 80 percent of the global exports of 4IR products and 63 percent of the global imports of

3、the products in 2019.Some APEC economies,such as China;Japan;Korea;and the US,have been particularly active in patenting,with inventions(mostly)in core technologies and applications in home and consumer goods.Economies that are active in patenting also show the highest patent content embedded in the

4、ir value chains.APEC economies are moving in heterogeneous directions in integrating into GVCs.APEC economies such as Mexico and Viet Nam have become increasingly integrated into GVCs,as represented by their high foreign shares in both backward and forward linkages.Meanwhile,economies such as China;

5、Indonesia;and Malaysia show lower participation in global production.An economys GVC integration trajectory may be influenced by its level of technological advancement.The specific trajectory may be attributable to the economys GVC positioning and upgrading strategies at the economy as well as the s

6、ectoral levels,such as labour-intensive production capabilities or policies to attract foreign direct investment(FDI)in prioritised sectors.In upgrading,economies could follow a non-linear path,leapfrogging to higher stages through strategic investment in R&D and labour force upskilling.A more gradu