Understanding and conceptualizing the complexities of the contemporary global economy is a challenging but vitally important task. In this article, we critically evaluate the potential of one interpretive framework - The global production networks (GPN) perspective - For analysing the global economy and its impacts on territorial development. After situating the approach in relation to other cognate chain/network approaches, the article proceeds to review and evaluate a number of underdeveloped areas that need to be understood and incorporated more fully if the framework is to deliver on its early potential. The article concludes with a consideration of the key research issues facing work in this area. © The Author (2008). Published by Oxford University Press. All rights reserved.