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Researchers continue to seek understanding of industrialization as a state managed process. How to create and implement new industries based on advanced knowledge is on the policy agenda of many advanced nations. Measures that promote these developments include national capacity building in science and technology, the formation of technology transfer systems, and the establishment of industrial clusters. What these templates often overlook is an analysis of use. This chapter aims to increase the understanding of the processes that embed new solutions in structures from an industrial network perspective. The chapter describes an empirical study of high-technology industrialization in Taiwan that the researcher conducts to this end. The study shows that the Taiwanese industrial model is oversimplified and omits several important factors in the development of new industries. This study bases its findings on the notions that resource combination occurs in different time and space, the new always builds on existing resource structures, and the users are important as active participants in development processes.

This chapter examines the role of foreign direct investment (FDI) in promoting industrial development, and asks, if FDI is such an important avenue to promote development, why is there little evidence on concomitant industrial development in most developing countries?

I look at the secondary evidence on FDI and development and explore some of the causes for this ambiguity.

The complexities of global value chains and networks have begun to trivialise the simplistic principle that increased multinational enterprise (MNE) activity automatically implies a proportional increase in spillovers and linkages.

Policies towards MNEs need to be closely linked and integrated with industrial policy. MNE activity needs to be evaluated by considering the kinds of externalities that are generated; whether and how domestic actors can internalise them, and building up absorptive capacities to achieve this.

A company as an entity could cease to exist owing to its merger and dormancy in activity. The latter can be attributed to two causes – unsustainability of present state of production or shell companies. Therefore, three questions are posed – one, why do companies merge, two – why do companies shut down and third – of those that disappear can they be identified as shell.

The motives for each of these cases of disappearance of a company are enlisted and a firm-level analysis is undertaken where each firm is compared with a counterfactual.

It is found that companies that survived despite the inefficiencies and smaller market shares were the ones that had some foreign affiliation and were unrelated to existing business entities. On the other hand, the dormancy or shutdown can be attributed to lack of access to imported technology and low shares of market with dismal profitability. With the growing intensity of globalisation, the Indian corporate sector is now more prone to global economic conditions. Lastly, the disappearance or shutdown of companies that may have been used for tax avoidance is supported by the data.

The present study is the first to amalgamate and discuss various the causes for shutdown of companies. Further, the methodology adopted is unique in terms of the use of counterfactuals.

We link the exploration–exploitation framework of organizational learning to small- and medium-sized enterprises (SMEs) in a developing economy. SMEs in a developing economy generally lack abundant resources and capabilities because of an evolving set of industrial and environmental regulations. Studying two SMEs in China, we argue that their approaches to balancing exploration and exploitation depend on the development stages of the SMEs and their industrial and environmental contexts. In particular, we propose a four-stage framework that unfolds via initiation, innovation, transformation, and expansion. In this framework, SMEs balance exploration and exploitation by adopting temporal separation and organizational separation sequentially. We also find that SMEs may benefit from exploring a narrow scope of products and exploiting them in a wide market scope.

Pharmaceutical industry is one of the sunrise industries in the Indian manufacturing sector. It has flourished in the recent past. This chapter makes a comparative analysis of the productivity growth of Indian pharmaceutical industry using production function approach and adopting two distinct measures of labour input and also explains whether the growth and productivity is eco-friendly or not. Annual Survey of Industries (ASI) data is considered as data base and the time period 1980–1981 to 2016–2017 is considered which is sub-divided into four periods (1980–1981 to 1989–1990; 1990–1991 to 1999–2000; 2000–2001 to 2009–2010; and rest of the period). The pattern of result for both the measures are more or less in the same direction. A remarkable growth in total factor productivity (TFP) is observed after the initiation of new economic policy for both the method used. So far as the environmental issues are concerned, this industry seems to have been polluting the environment, as per unit use of energy is increasing over time.