ABSTRACT
We start from the position explained in Part II that firms are embedded and shaped by their national contexts and that the contexts vary in the capabilities which inhere. The typical variety of sectoral clusters in a national context is part of the stratified reality within which firms exist. Moreover, the context contains those multinational businesses and sectoral clusters that affect the action of any focal firms in our analysis. Contexts imply zones of manoeuvre. Likewise firms have zones of manoeuvre within those contexts. The zones of manoeuvre for the firm also depend upon the capabilities in its repertoire and the political capacity of the firm's constitution to action those capabilities.
