INDUSTRIAL REORGANIZATION IN DEVELOPING-COUNTRIES - FROM MODELS TO TRAJECTORIES

The success of Japanese industry and of some industries in the Emilia- Romagna region of Italy in the 1970s and 1980s has stimulated interest in new models of industrial organization. Interest in applying such m odels in developing countries is increasing rapidly. Evidence from dev eloping countries shows that models are a useful starting point, but t hat it is essential to consider the diversity of developing country ex periences and to understand the processes by which firms and sectors a re transformed. This paper focuses on the trajectories of change taken by firms which reorganize their production and by clusters of firms.