Knowledge-based capital has become a driver of success in global value chains (GVCs). The value created by a GVC is unevenly distributed and depends on the ability of participants to supply sophisticated and hard-to-imitate products and services. Increasingly, such products or services stem from forms of knowledge-based capital such as brands, basic R&D, design and the complex integration of software with organisational structures. Knowledge-based capital also allows companies to shape the architecture of a GVC in order to capture a larger share of the value created. Policy makers in OECD countries and in many emerging economies therefore increasingly focus on investments in knowledge-based capital so as to upgrade to higher-value segments of GVCs and improve their position in the value chain.