In recent times, literature - favouring a neo-classical perspective - on industrialization in developing nations has been the subnect of increasing criticism. The opponents of the neo-classical approach argue that outward-looking free market policies do not offer the best prospects for self-sustaining growth. In a straight forward manner, Chapter 1 airs the views of economists of both perspectives. Subsequently, a framework for a general discussion is provided. Outward-looking industrial policies m Ireland, have led to the emergence of a vibrant foreign-owned manufacturing sector. As Chapter 2 points out, there is considerable evidence that outward-looking industrialization has thus far been unsuccessful in developing strong native companies capable of entering export markets. Chapter 3 suggests that this may be a common experience among late industrializing countries (LICs). In fact, the creation of a competitive indigenous manufacturing base may be contingent upon a departure from strict neo-classical guidelines. Chapter 4 shows that the development of the motor industry in LICs has usually taken place under the auspices of large transnational corporations (TNCs) from developed countries. Only with active state intervention have domestic firms - with the assistance of foreign capital and technology - shown an ability to compete on the world market. As Chapter 5 indicates, assembly of motor vehicles in Ireland was dominated by the subsidiaries of foreign companies. This is also true of the Irish automotive components sector, which has evolved in recent years. The analysis of this sector, contained m Chapter 5, is based largely on unpublished material. It is clear that this industry suffers from many of the short-comings often associated with foreign dominated sectors of Irish manufacturing. By way of a conclusion, Chapter 6 argues that a role exists for more state intervention. However, it warns that government intervention in the system is not without risk. The task facing policy makers is to design a constructive role for the state. With respect to the Irish manufacturing industry, m the absence of more state intervention, the development of export markets will remain beyond the reach of most indigenous producers.