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participant shown in the table includes costs that can be saved, such as the cost of preparing teaching materials, if a training program is repeatedly provided.

It is remarkable that the estimated annual benefit tends to exceed the cost despite the overestimation of the cost and underestimation of the benefit in Table 2. Since the benefits will continue to accrue in coming years, the present value of benefits will be much greater. Thus, it is quite possible for future rounds of follow-up surveys to establish that the social benefit from the provision of the management training program exceeds the cost of the provision. Moreover, there may be room for the improvement in the training contents.

Many issues remain unresolved regarding the impact of training. For example, it is not clear yet what type of firms, e.g., size and the education and experience of managers, benefits more from training program and in what type of clusters it is effective, and what type of management information is highly demanded. It is also important to inquire the extent of complementarity among management and technical training programs and the provision of credit in improving firm performance.

# **Conclusions**

It is widely accepted that good management is critically important for firms, especially large firms consisting of many groups with different functions (e.g., Drucker, 1973). The present paper has found that management is important for MSEs as well. Among various aspects of management, particularly important for MSEs is to keep control of the production pace because wild fluctuations in production make the expansion of employment size highly risky and cause overproduction and other wasteful uses of resources. For MSEs, it should be useful to teach the importance of record keeping and pricing based on the analysis of records and basic knowledge of marketing and workshop housekeeping. Actually, the results of randomized experiments carried out recently, including our experiments in Vietnam, Ghana, and Tanzania, indicate that basic management training helps training participants’ firms improve management practices, reduces the incidence of exit, and is likely to benefit participants enough to justify the cost of providing the training.

Our analysis, however, indicates that the provision of basic management training is not enough to help firms grow dynamically so that they can create ample job opportunities. Dynamic firm growth is a result of multifaceted innovation led by entrepreneurship. Thus, it is important to nurture entrepreneurs’ innovative capacity. Compared with managerial capacity, innovative capacity in general is probably more elusive and accordingly more difficult to teach to entrepreneurs. Nonetheless, our review of dynamic cluster development suggests that there is a common pattern: dynamic clusters in different sectors in different countries have shared similar experiences of a series of innovations starting with product quality improvement followed by branding, improvements in marketing, strengthening relationships with suppliers, and improvements in management of labor, inventory, and finances. This finding brings new hope: entrepreneurship relevant to industrial development in low-income countries may be taught. A considerable compilation of empirical studies of the operational practicalities of teaching