realise; as it is to learn from experience. It is important to observe that the road to productivity and competitiveness is not one-way. Developing countries should exploit the informational benefits from the existence of a plurality of institutional and organisational forms, to include clusters and (even!) SOEs (see Pitelis, 1998). Theory and history suggest there are no panaceas. Domestic CPs, privatisation and regulation should be combined in a way that aims at enhancing innovation and productivity, rather than finding an optimal state. Privatisation should be a means to an end. If not properly conceived and implemented, and in the absence of a suitable regulatory framework, its benefits could be severely compromised. Mistakes are bound to occur.