ABSTRACT
This chapter examines transnational corporations (TNCs') network configurations and their implications for regional development in the Yangtze River Delta (YRD), with an emphasis on Shanghai and Suzhou. Shanghai and Suzhou are far ahead of other cities in the development of the Information and Communication Technology (ICT) industry. Shanghai has become the most popular city for TNCs and has significantly outperformed other Chinese cities in attracting foreign direct investment (FDI) since the mid-1990s. Zhou and Tong (2003) argue that the success of the Zhongguancun Science Park in Beijing, considered China's Silicon Valley, relies heavily on the inter-dependence between TNCs and local firms. The development of human resources has become one of the major contributions of TNCs to the high-tech industry in China. With a series of new policies to attract FDI and facilitate development of the high-tech industry, Zhangjiang has recorded an impressive growth in the last decade.
