PETER NOLAN is Sinyi Professor of Chinese Management at Judge Business School, University of Cambridge, UK. ZHANG JIN is University Lecturer in International Business at the Judge Buisness School, University of Cambridge, UK. CHUNHANG LIU is Director of the China Industry Development Research Centre at Peking University, China.

• Introduction The Debate The Global Business Revolution Systems Integration and the Cascade Effect The Aerospace Industry The Beverage Industry The Retail Industry Implications for Firm-Level Catch-up in Developing Countries