The Impact of Industrial Robot Applications on Global Value Chains Division Position

Abstract

This paper surveys the GVC division position across forty-five countries and fourteen manufacturing sub-sectors during the period from 1999 to 2018 to illustrate the impact of applications of industrial robots on the GVC position. The study proves that an increasing level of utilization of industrial robots significantly improves the GVC division position in the manufacturing sector. By automating repetitive and precision tasks, robots enhance efficiency and productivity, therefore allowing deeper specialization in specific stages of the manufacturing process. This technological progress allows for a more connected global production network and hence better integration into GVC. The study also evaluates the spillover effects across value chains and the moderating impact of industrial agglomeration on smart manufacturing.The empirical results show that the application of industrial robots enhances productivity and encourages innovation in related sectors, thereby driving downstream industry growth and promoting industry specialization.Despite the improvement in GVC division positions, robots also contribute to making global value chains more diversified and resilient. Flexible and adaptive manufacturing systems can adapt to disruptions, such as pandemics and geopolitical tensions, ensuring continuity in production and increasing stability and competitiveness in smart manufacturing systems.