Collaborative Innovation: A StrategicPathway to Higher Domestic Valueaddedin Manufacturing Exports

Li Zexin1, Liu Qing*2, Zhao Zhongxiu3

1 School of Economics, Shandong Normal University (SNU), Jinan, China

2 School of Economics, Renmin University of China (RUC), Beijing, China

3 School of International Trade and Economics, University of International Business and Economics (UIBE), Beijing, China

Abstract: International trade research has long sought to investigate how manufacturerscan upgrade within global value chains and escape the “low-end trap”. This paperexamines how collaborative innovation can facilitate this ascent, using an undirectedweighted network of joint patent applications and firm-level data. By analyzing thenetwork’s structural characteristics and its evolution, we explore the mechanisms throughwhich collaboration drives the rise of manufacturing enterprises within global valuechains. Our findings show that: (1) China’s rapidly expanding collaborative innovationnetwork features a distinct “core-periphery” structure, with leading firms, universities,and government research institutions at its center. (2) By strengthening market power andenabling firms to take on more advanced production, collaborative innovation contributesto a higher domestic value-added rate in exports. (3) Heterogeneity analysis reveals that theimpact of collaborative innovation on moving up the value chain is particularly evident forfirms with strong production and technology absorption capabilities, those positioned lowerin the value chain, and those facing fewer trade barriers.

Keywords: Global value chain (GVC); domestic value-added rate of exports; collaborative

JEL Classification Codes: D21, O33

DOI: 10.19602/j.chinaeconomist.2025.03.03