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This book effectively challenges the conventional wisdom regarding the cluster-innovation relationship and has provided convincing evidence to show that prevailing theoretical models derived from Anglo-American experiences cannot be uncritically applied to Chinese reality. This book introduces a new theory of state-firm coordination to explain why and how some Chinese ICT firms have turned out to be more innovative than others. Its subjects involve economic geography, institutional economics, political science and regulation theory. Empirically, the book provides state-of-the-art findings to clarify many puzzles, confusion, and misunderstanding about the exact nature of China's ICT industry. It has essentially set a new baseline and made definitive contribution to knowledge production about China's economic geography. Methodologically, this book shows how original, critical, and independent research can be undertaken effectively and innovatively through cross-disciplinary theoretical interaction, deductive reasoning with hypotheses testing, combination of multiple means of data collection, integration of quantitative and qualitative methods, and structured presentation of research findings with extensive tabular, graphic, and cartographic illustrations.