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The object of this short monograph is to draw on research and ideas from recent sectoral and local development studies in order to propose elements that could form part of an appropriate institutional framework for upgrading industrial sectors - particularly in the manufacturing sphere, such as those producing clothing, ceramics, machinery or furniture. The explicit purpose is to consider how industrial sectors, in both developing and advanced industrial countries, might be made internationally competitive by strategies that seek to enhance productivity, quality, design, innovation, flexibility and fast response, making full use of endogenous resources, skills and entrepreneurial capabilities, and relying particularly on the combined potential of independent small firms. This approach contrasts with those that put strong emphasis on promoting vertical integration and large-firm, mass production capabilities or those that simply seek to target isolated examples of small firms perceived as having growth potential, or again those that would try to encourage development on a basis of low quality, low technology and cheap labour.

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Frank Pyke

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