ABSTRACT
This chapter starts with two explicit assumptions. The first is that institutions in their broadest sense are important to the process of industrialization and that technical change is the motivating force for industrial progress, although policy makers in Africa underestimate the role and importance of institutions. Second, while much of the enterprises in Africa are small and medium sized firms, this structural characteristic should not be an impediment to industrial progress. The finding applies to almost all African Small and Medium Enterprises although pockets of sound technological capabilities and excellent managerial skills abound particularly in medium enterprises. It explains the tentative conclusion that inter-firm relations, particularly between firms and other economic agents, involve more than exchange of information about prices and volumes; although people are far from fully understanding all the factors inducing networking. The chapter also presents some closing thoughts on the key concepts discussed in this book.
