The process of technological development at the firm level is a primary determinant of industrial competitiveness and dynamism. However, little is known about the nature of technical capability acquisition in less industrialised countries. Enterprises in these countries face just as demanding a task in mastering and adapting industrial technologies as those in the newly industrialising economies.

This study, sponsored by the World Bank, is based on a detailed analysis of a sample of manufacturing enterprises of different sizes, ownership forms and specialisations in Ghana. It is the first such analysis for a less developed African country, and examine why industry in general has low capabilities and what effects the rapid liberalisation of the Ghana economy is having on its ability to compete and grow.

It discusses why some enterprises are technologically better than others, and offers many useful insights into the origins of modern entrepreneurs as well as policy measures to support industrial development.