Learning in local cluster in the context of global value chain: A case study of the Yunhe wood toy cluster in Zhejiang, China

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This paper examines learning by a local Chinese cluster from external sources, based on a detailed case study of the Yunhe wood toy cluster, in Zhejiang Province. Employing the theorems of global value chain and cluster learning, the paper explores various external channels of knowledge and the role of learning for local firms. The channels include international trade relations, FDI, expositions and domestic knowledge centers, and the Internet. The paper ends with a discussion on findings on externally sourced learning and policies for promotion of learning in the cluster.