Desarrollo Económico vol:33 issue:129 pages:87-107
The article is based on an in depth research on the uruguayan electronic industry. Starting from a presentation of the main domestic characteristics of this sector, including its innovation capacity, the authors sustain the viability and convenience of the domestic development of certain segments of the electronic industry in small under developed countries, like Uruguay. Even without the necessary economic, political and social conditions to ensure an export based strategy, the consolidation of an infant electronic industry may have significant impacts on the rest of the economy. It provides specific solutions to domestic problems in productive and service areas, it contributes indirectly to improving the export capacity of other sectors and it widens the technological diffusion process. However, this diffusion process will require actions and policies oriented towards both supply and demand sides. Among those, institutional innovations are essential to allow the effective opening of the ''window of opportunity'' provided by technical change.