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The authors of this book examine the nature and causes of inefficiency in manufacturing industry. They provide a detailed examination of the nature of inefficiency and the issues involved in its measurement. A detailed examination of inefficiency in Australian and British industry is made with an identification of the sources of inefficiency and a comparison of the two countries. The implications for government policy and industrial strategy are analyzed. The book draws on research conducted during a major international research project involving 150 industries in the UK, US, Japan, Australia, Korea, Canada and Norway. It makes a contribution to our understanding of the causes of inefficency and draws important implications for government policy-makers, business and industrial economists, and planners and strategists working in industry. The lessons should be influential in shaping future government policy and improving the competitiveness of a nations's industry.