Industry Canada
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What are Global Value Chains?
Global value chains (GVCs) include the full range of activities that are required to bring a product from its conception to its end use and beyond (e.g., design, production, distribution). Value chain activities can be contained within a single firm or divided among different firms, and can be contained within a single geographical location or spread over wider areas. For example, firms are increasingly outsourcing some of their activities to third parties, locating parts of their supply chains outside their home country (offshoring), and partnering with other firms through strategic alliances and joint ventures.
Why are They Important?
The globalization of value chains is having a profound impact on economic performance. Firms are increasingly outsourcing some of their activities to third parties, locating other activities outside their home country, and forming strategic alliances and joint ventures. Companies around the world are rethinking their structures and strategies to put in place various parts of their production process where it makes the most economic sense with these ongoing changes, there is a need to increase the awareness of global value chains in the formulation of policies in support of industrial development and in promoting innovation, competitiveness and economic growth. This includes understanding the implications for Canadian firms, industries and communities, the magnitude of existing barriers and opportunities, and the appropriate policies (such as business environment, trade and investment, etc.). Canadian firms and industries increasingly need to be involved in GVCs to move to more knowledge-intensive activities through global partnerships.
To achieve this objective, Industry Canada is working on different GVCs related projects in collaboration with various industry associations, federal departments and economic agencies who are also involved in GVCs.
