A firm-level perspective on windows of opportunity

The concept of windows of opportunity (WoO) has been put forward as a perspective for understanding industrial catching up in developing and emerging economies. A related, but separate literature (capability literature) has focused on the learning processes of developing country firms as they build technological capabilities. In this paper, we examine the insights that can be drawn from the capability literature in order to provide a more nuanced and micro-level perspective on WoO. Through a review of the capability literature, we highlight the intra-industry differences and capability-building trajectories of individual firms as they respond to technological, demand, and institutional WoO. The paper underscores the importance of devoting attention to firm-level differences to understand how these may influence firms' responses to WoO.