ABSTRACT
In parallel with this view, we argue that theoretical understanding is not the same as explaining reality. Theory is a necessary simplification that has to be confronted with empirical data. Only in this way can our understanding on the level of theory be critically examined and brought into line with real life experience. That this confrontation is guided by a transcendental realist or a critical rationalist ontology is not the point at issue. The issue is that theories need to be as concrete as possible. "Vaguely stated theories and hypotheses serve no purpose but to obfuscate" (King et al 1994, p. 20). For too long, empirical tests of theories of local growth have been based on case studies, and usually case studies only of success stories, be they of industrial districts or of business alliances. It is our prime contention that this field of knowledge needs sound, empirical investigation that puts theoretical positions under critical scrutiny.
