This introductory chapter outlines the key concepts of development stages and policy approaches of innovation. It introduces the focus region of the book, i.e., China’s world factory, the Guangdong Province in a dynamic perspective. The “secret formula” of Guangdong’s successful industrial development lies on what is termed as “bottom-up innovation model,” which is in fact the unique combination and interplay of local government policies with business strategies of local firms. This chapter gives an overview on how this central theme is organized in the book chapters.