This paper develops a Capability Matrix for analyzing capabilities of developingcountry firms that participate in global and national value chains. This is a genericframework to capture firm-level knowledge accumulation in the context of globaland local industrial constellations, by integrating key elements of the global valuechain (GVC) and technological capabilities (TC) approaches. The framework canvisually portray characteristics of firms’ capabilities, and highlight a relativelyoverlooked factor in the GVC approach: local firms’ endogenous learning efforts invarieties of relationship with lead firms
