Abstract
This study examines the development of apparel firms in Tajikistan. Since Tajikistan is the lowest-income country in Central Asia, its innovation system is rather limited. Instead, international donors play a complementary role in the knowledge sourcing of the apparel industry. Moreover, the technological capabilities of individual firms are critically important for industrial upgrading. Based on a survey of 25 apparel firms, this study identifies three trajectories for the upgrading of Tajikistan’s apparel firms and examines the government’s policy dilemma between the creation of export competitiveness and the need for indirect protection for the domestic apparel industry.
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