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During the last few decades, globalization has transformed economic development in East Asia. The expansion of foreign direct investment, increase in international trade, and accelerated flow of financial and human resources across country borders have triggered rapid industrialization and economic integration in the region. This volume uses the global value chains (GVC) perspective, to explore how the dynamic interactions between firms from developed and developing economies, together with other factors, have stimulated and shaped the rise of local firm capabilities in East Asia. By extending and modifying the existing GVC perspective, the contributors present their own analytical framework to explain the rise of firm capabilities within value-chain dynamics. This book is essential reading for all interested in development economics, international trade policy and East Asian economics and studies.