The dichotomy between small and medium-sized firms (SMEs) and large corporations, with their corresponding effects on job creation, will continue, but its modalities will change in directions which the region's countries would do well to monitor. The most advanced countries have been proactively promoting this type of manufacturing, which has often translated into a resurgence of industrial policymaking and a return to more advanced manufacturing activities in former production hubs. The current thinking on this topic as well as the actions taken in these and other countries compel Latin America to address the issue in all its technological and public policy dimensions. The productivity gap, limited research and development in technology and weak industrial policies in most of the region's countries are problems that must be tackled concomitantly.