Smiling Curve in the Textile Supply Chain: What Helps to Upgrade?

The smiling curve theory adds to globalization phenomenon a discrimination feature, by assuming a selective division of higher and lower value added stages respectively to developed and developing countries. In such a Global Value Chain context, the upgrading ability – that helps to gain a higher share of value added – is a relevant variable to consider in relation to the value chain stages in which the companies are involved. By focusing on an industrial district in a developed country (Italy), this paper aims at challenging the smiling curve hypothesis and testing whether the integration of pre- and post-production activities enhance upgrading.