However, this type of strategy
has often led to enclaves of higher productivity
activities, with weak
links to the rest of the economy,
composed by a plethora of micro and
small firms that operate far from the
technological frontier. Hence, even
if a country has been successful
in attracting FDI and in becoming
an integral part of the global
value chain, there is no guarantee
that spillovers will automatically
spur more domestic innovation (see
Chapters 7 and 10 on Georgia and
Malaysia).