Publication

This article discusses changes of the development agenda caused by the rise of global production networks (GPN). These create new incentives and opportunities for international knowledge diffusion, which act as a catalyst for developing local capabilities. The author develops a conceptual framework for policy-oriented empirical research that integrates insights on GPN, knowledge diffusion and capability-development. He concludes that institutions and policies that facilitate the concurrent leverage of multiple sources of knowledge are indispensable for success.