This joint OECD and World Bank Group report, presented to G20 Trade Ministers in October
2015, focuses on the challenge of making GVCs more “inclusive” by overcoming participation
constraints for SMEs and facilitating access for LIDCs. Results suggest that SME participation
in GVCs is mostly taking place through indirect contribution to exports (rather than
through direct exports), and that a holistic approach to trade, investment and national
and multilateral policy action is needed to create more inclusive GVCs.The report
highlights the importance of ensuring access to ICT networks – in particular broadband
– and stimulating innovation – in particular by enhancing the ability of SMEs to manage
and protect their intellectual assets. At the same, the report underscores the importance
of helping small firms scale up quickly, and to better integrate in GVCs by lowering
barriers to the entry, growth and exit of firms. Countries should also avoid favouring
incumbents over new firms.