Economic growth in the Asia and Pacific region has been at a remarkable level in recent decades. There is a wide range in the region, however, and no single pattern of industrial development. Similarly, small and medium industries in the region include traditional, artisanal businesses as well as modern, technologically advanced enterprises supplying equipment to large industries. In the light of a world slow-down in the growth of trade it seems likely that modern SMIs in Asia and the Pacific must look to the region if they wish to maintain their exports, and the potential for sub-contracting linkages between large industry and SMIs across the region must be developed to the full. This article surveys the progress of such linkages across the region and points to how such arrangements can work, and how national governments can foster them.