This paper examines relationships between technical innovations and industrial development. Part I contains a survey of recent literature on the role of innovations in the growth of manufacturing firms. Attention is focused on the firms' responses and strategies such as investments in research and development activity, foreign investments, and the internalization process. In Part II the perspective shifts from the individual firm to industrial sectors and groups of commodities. A number of concepts pertaining to industrial structure, interindustry linkages, and product cycles are evaluated.