Flexible Specialisation, Technology and Employment-Networks in Developing Countries

and Employment Networks in Developing Countries Regina M A A Galhardi Recent studies question the replicability of flexible specialisation model of advanced industrialisation to small firm operations of developing countries. Small firm clusters in the third world countries are not new strategies but old practices pursued in order to overcome their technological and market weaknesses. The studies challenge the assumption that labour surplus can prove to be the competitive advantage of these firms since most of them provide inferior working and payment conditions. Further, lack of strong inter-firm linkages deny collective efficiency to these firms to deal with the changes in the market.