This article examines critically the literature on industrial policy, regional production specialization, global production sharing, global value chains and global production networks to analyse technological capability development in clothing, automotive and semiconductor firms in China and Southeast Asia. Host-site institutional support and regional production linkages were identified as having a strong influence on firm-level technological capabilities. The article then provides the justification and the structure of the automotive, clothing and semiconductor industries, which are characterized by strong international division of labour.
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Rasiah et al. (2014) studied this question.
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