This paper develops a conceptual framework that links knowledge about global production networks (GPNs), international knowledge diffusion and local capability formation. The authors analyze the forces behind the rise of GPNs, such as liberalization, information and communication technologies as...

China's opportunities to build innovative capabilities in the IT industry differ from those faced earlier by Japan and East Asian newly industrializing economies (NIEs). China has a unique combination of advantages in a booming market for electronics products and services, the world's largest...