In this volume, Vivienne Wang and Elias G. Carayannis apply both theoretical approaches and empirical analysis to explore the dynamics of innovation in developing countries, with a particular emphasis on R&D in manufacturing firms. Their research addresses such questions as, do innovations advance the competitive positions of manufacturing firms in developing countries?Does the pace of innovation matter, in particular, in socio-economic and socio-political contexts? To what degree can national innovation systems and policies influence development? To what extent do a firm’s innovation commitments correlate with the protection of intellectual property rights? What roles do foreign direct investment and relationships with clusters and networks play? The resulting analysis not only challenges traditional theoretical approaches to innovation, but provides suggestions for improving business practice and policymaking.