cover image: Enhancing the Capacity of MSMEs to Participate in Global Value Chains

20.500.12592/sscqh0

Enhancing the Capacity of MSMEs to Participate in Global Value Chains

24 May 2023

Task Force 1: Macroeconomics, Trade, and Livelihoods: Policy Coherence and International Coordination The Challenges There are several key factors that make MSMEs less competitive in comparison to large corporations: Poor technological capability With the advent of Industry 4.0, new innovations have emerged in production technologies. Specifically, innovations such as robotic automation, 3-D printing, and automated quality control have substantially increased the competitiveness of producers. MSMEs, specifically those in developing nations, are under threat due to this changing technological landscape. [10] Even among developed nations, the adoption of Industry 4.0 concepts such as artificial intelligence (AI) and big data analytics is limited among MSMEs (see Figure 1). [a] Figure 1 : Percentage of businesses using AI and Big Data within OECD countries Source: Authors’ calculation (simple average across nations) using OECD ICT Access and Use by Business dataset. [11]

Authors

Shubham Gupta, Akshay Natteri Mangadu

Published in
India