Recent developments in the pattern of international knowledge sourcing have highlighted a new international division of labor in knowledge production which now is affecting emerging as well as advanced countries. The source of this division of labor has been identified as residing in the changing economic endowments of these countries. We extend this by suggesting that the new international allocation of knowledge-related activities is related strongly to a country’s “non-economic” endowments. Our arguments provide context to the papers in this special section.

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