The global value chain (GVC) revolution that began in the early 1990s has been characterised by unprecedented geographical separation of tasks and business functions employed to produce complex products. Through GVCs, firms have increasingly drawn on the international, instead of national, knowledge, resources and production factor base which allowed further specialisation and realisation of greater economies of scale. GVCs have also opened opportunities to participate in the global markets without having to develop a complete product or value chain and to draw on foreign knowledge and learn by doing. However, GVCs also tend to be very competitive, versatile and are characterised by powerful governance relationships which means that the capacity of workers and firms to participate in beneficial ways is not to be taken for granted. This report aims to lay an empirical foundation for structuring economic policies to facilitate Chile’s GVC participation and maximise the benefits associated with it for national firms and workers. It builds on data and methodological advancements by the OECD, compiles key indicators of Chile’s engagement in GVCs and puts them in the context of recent and considered policy reforms. The thematic breakdown proposed aims at providing a holistic diagnostic of Chile’s position in international production networks by investigating its trade, investment and innovation dimensions.
