The Conglomerate Way to Growth
Many developing countries do not have the capabilities that growth industries demand, yet developing these capabilities is impossible unless the industries that require them are present. One way to solve this problem is through vertical integration – that is, firms that can coordinate the supply and demand for any new capability.
CAMBRIDGE – Countries do not become rich by making more of the same thing. They do so by changing what they produce and how they produce it. They grow by doing things that are new to them; in short, they innovate.