| List of Tables | p. x |
| List of Figures | p. xi |
| List of Abbreviations | p. xii |
| Preface | p. xv |
| Acknowledgements | p. xvii |
| Introduction | p. 1 |
| The SMEs, the fracture within the system and a systemic approach to development | p. 2 |
| The development of SME clusters | p. 5 |
| Empirical explorations in Latin American clusters | p. 8 |
| Small and Medium Enterprise Development | p. 11 |
| Integrating the National Production System: The New Challenge for Chile | p. 13 |
| Introduction | p. 13 |
| A conceptual framework | p. 14 |
| Policy approach in the 1980s and the 1990s | p. 16 |
| The explicit policy approach | p. 16 |
| Implicit industrial policies | p. 18 |
| Enterprises' reaction to crisis | p. 21 |
| Interpretations of the slowdown: ECLAC's critique and the de-industrialisation process | p. 25 |
| The need to set up integrative industrial strategies | p. 26 |
| Inclusion Versus Fragmentation: Different Responses to Liberalisation in European and Latin American Small and Medium Enterprises | p. 30 |
| Introduction | p. 30 |
| Industrial restructuring and small firms in Europe | p. 32 |
| The main processes in Latin America: liberalisation and industrial destructuring | p. 35 |
| Case study: Argentina | p. 37 |
| Case study: Chile | p. 40 |
| Case study: Nicaragua | p. 43 |
| Case study: Costa Rica | p. 46 |
| A synthetic view of the Latin American response | p. 48 |
| A Strategic approach to industrial development | p. 50 |
| Small and Medium Enterprise Cluster Development | p. 55 |
| Different Theoretical Approaches to SME Cluster Development: Relevance in the Case of Nicaragua | p. 57 |
| Introduction | p. 57 |
| The 'spontaneous' approach to SME cluster development | p. 59 |
| The 'policy-inducement' approach to SME development | p. 61 |
| The social approach | p. 63 |
| The social embeddedness of economic action | p. 63 |
| Trust in industrial districts and SME clusters | p. 64 |
| The social strengths of SME clusters | p. 66 |
| Empirical evidence from Nicaragua | p. 69 |
| An introduction to the country | p. 69 |
| The main programmes to support SMEs in Nicaragua | p. 71 |
| The limits to the division and specialisation of labour and their social roots | p. 74 |
| The conflictive political economy in Nicaragua | p. 76 |
| Preliminary conclusions on policy-making in SME clusters | p. 78 |
| A Stage and Eclectic Approach to Industrial District Development: Two Policy Keys for Survival Clusters in Developing Countries | p. 82 |
| Introduction | p. 82 |
| The analysis of development stages | p. 84 |
| Summing up the eclectic analytical framework | p. 85 |
| The stages of development of the Italian industrial districts | p. 89 |
| The passage from rural life to artisanal clusters (1920s-early 1950s) | p. 89 |
| The passage from craft production to industrial concentration (1950s-1960s) | p. 92 |
| The passage from industrial concentration to industrial districts (1960s-1960s) | p. 94 |
| The passage from traditional IDs to new competitive IDs (1980s-2000s) | p. 96 |
| Two policy keys for 'survival clusters' in developing countries | p. 101 |
| Policy key I: the importance of upgrading through stages | p. 101 |
| Policy key II: the relevance of an eclectic approach | p. 103 |
| Empirical Explorations in Survival Clusters in Central America and in Competitive Italian Industrial Districts | p. 105 |
| Introduction | p. 105 |
| 'Survival clusters' in developing countries | p. 106 |
| Empirical evidence from three clusters | p. 107 |
| The context | p. 107 |
| The district of Forli, Italy | p. 109 |
| The 'survival clusters' of Sarchi, Costa Rica, and Masaya, Nicaragua | p. 116 |
| Concluding remarks for policy-making | p. 124 |
| Conclusions | p. 126 |
| SME development | p. 127 |
| SME cluster development | p. 132 |
| Notes | p. 136 |
| Bibliography | p. 142 |
| Index | p. 155 |
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