The dynamics of the world economy and international trade are increasingly characterised by global value chains (GVCs), within which intermediate goods and services are traded in fragmented and internationally dispersed production processes. Successful integration of firms and countries in GVCs is increasingly important for their integration in international economy and own development. Based on the analysis of conceptual, empirical an policy related GVCs' literature on: (i) GVCs in development economics and international trade models, (ii) factors behind proliferation of GVCs, (iii) development effects, benefits and risks of integrating into GVCs, (iv) importance of GVCs for international trade, (v) theoretical considerations and empirical evidence on firms' (MNEs') decision-making related to GVC's establishing and modality, (vi) governing a GVC and upgrading of position in a GVC, and (vii) GVCs' related changes for economic policy, we propose the priority topics of future GVCs' research that are the most important for the economies of catching up countries ('factory economies') and their firms.
The significance of the global value chains (GVCs) for the global economy and international trade is increasing. GVCs are defined as fragmented and diversified international manufacturing processes, where intermediate goods and services are being traded. The data show that the involvement of Slovenian firms in the GVCs has been gradually increasing. In the future, success of Slovenian trading firms will be highly dependent upon the intensity and quality of involvement in the GVCs. In addition, it is highly important that firms make good use of engaging in the GVCs, by increasing their own growth and development and also to ensure the best or the most stable position in the supply chain and progression to GVCs. The position of Slovenian firms in GVCs and relating trends are analysed by the use of supply chain matrix (Boc and Lanz, 2013). The matrix shows the following main characteristics about the integration of Slovenian firms in the GVCs: (i) the participation of the ICT industry is regressing in all dimensions of the GVCs, (ii) the production of final products in high-tech industries has gained modest comparative advantages without any clear pattern of participation in the GVCs in the recent years, (iii) medium-tech industries are increasing their inclusion in the final and intermediate stages of the GVCs, (iv) medium-low technology-intensive industries are becoming more strongly engaged in the intermediate phases of GVCs, (v) low technology-intensive industries have lost their comparative advantage in the final stages, while maintaining the position in the intermediate stages of the GVCs.