Global value chains (GVCs) have emerged as a key driver of economic transformation and innovation in many developing countries by facilitating knowledge transfer, industrial upgrading and technological diffusion. However, structural asymmetries and environmental regulations may exacerbate ecological degradation by shifting pollution-intensive activities to these nations. Despite the growing role of GVCs in developing nations, empirical evidence on the relationship between GVCs and innovation—particularly in distinguishing between green and general technological innovations—is limited. Evidence that BRICS economies benefit from GVCs in terms of innovation remains inconclusive. This study examines the impact of GVCs embedding on technological innovations, differentiating between green and general innovations, using panel data from eight extended BRICS+ countries from 1990 to 2020. Using the Panel Autoregressive Distributed Lag (P-ARDL) model, three dimensions of GVC participation were examined: backward embedding, forward embedding and overall integration. The findings of this study show that backward embedding, which is characterised by the importation of intermediate goods, stimulates both green and general innovations. This highlights its role in fostering technological upgrading. In contrast, forward embedding constrains both green and general innovations, which locks BRICS+ countries into low-value-added activities, thereby limiting their technological progress. The impact of overall GVC participation is a trade-off between industrial growth and environmental sustainability, as it promotes general innovation but inhibits green innovation. By differentiating between various forms of GVC participation and their effect on innovation, this study provides policymakers with insight into how countries can leverage GVC integration to enhance industrial upgrading and promote sustainable development.