Analyzes the participation of SMEs in production networks, determinants, and policy implications using a data set covering 5,900 firms in five ASEAN economies at different stages of development, notably Indonesia, Malaysia, the Philippines, Thailand, and Vietnam. Concludes that SMEs have modestly increased their production network Focuses on how developing economies in Southeast Asia ride on the wave of globalization, bringing about benefits and economic growth with expanding trade and investment linkages. Presents trends of trade and investment in Southeast Asia, covering an overview of economic theories on production networks and industrial clusters, cross-border production networks, and industrial clusters and production networks. Provides three case studies on electronic sector in Indonesia and Malaysia, biomedical science sector in Singapore, and automobile sector in Thailand. Examines how the drivers for the expanding production networks have evolved in this region, regarding supply chain management and logistics as well as FTA and other regional economic cooperation.