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Also relating to this problem are the contributions that in various ways deal with the interaction between firms and their environments, such as Langlois’ examination of vertical disintegration in the US semiconductor industry (chapter 10). In chapter 12, Shi looks at the transfer of technological resources from the perspectives of both the donors and the recipients. He describes one central strategy that the People’s Republic of China has used to generate new technological resources to promote economic development and analyses the differing motives of high-tech and low-tech foreign firms for undertaking direct investment in the PRC.