The fourth industrial revolution, changing global value chains and industrial upgrading in emerging economies

The 4IR can open windows of opportunity for emerging economies but also raises red flags in terms of the main challenges that these changes pose to firms, industrial systems and policy approaches. Benefiting from it will not be automatic, as these economies suffer from several gaps that hamper their possibility to operate in a digital industrial landscape. However, with a capable entrepreneurial state, developing economies could use the ongoing uncertain and fast-changing scenario to fast track their development. As partnerships become more relevant for innovations due to technological convergence, competition policies and standards to avoid monopolistic positions and excessive concentration are needed to maintain the space for bottom-up innovation.