Why did Shenzhen, a backwater fishing village, spawn the likes of industry leaders ZTE, Huawei, and Lenovo, while Suzhou, which previously scored massive investments from top “dragon head” foreign firms like Samsung and Philips, failed to spawn domestic innovation? What role did FDI and the local bureaucrats in charge of economic development play? And what lessons does this story hold for today's Chinese industrial policy as well as development and innovation economics more broadly? For answers, we turn