The comparison presents innovation rates for firms with and without participation in G V C 1 and G V C 2. Under G V C 1, firms without G V C participation have an innovation proportion of 0.03, while firms with G V C participation have an innovation proportion of 0.17. Under G V C 2, firms without G V C participation have an innovation proportion of 0.05, while firms with G V C participation have an innovation proportion of 0.22. The vertical axis represents the proportion of firms innovating.