The Bulgarian experience, which saw no industrial take off, shows us that lacking the correct institutions it is possible to on industrialisation.
There are advantages to backwardness because the stock of knowledge on which can be drawn increases, but there are also disadvantages and it is easy to miss the opportune moment for industrialisation as Italy did.
Certain things are held to be essential for industrialisation; the abolition of archaic modes of agricultural production with a concomitant increase in productivity; the creation of an influential elite materially or ideologically interested in economic change; the necessary social capital in an area’s residents; a value system favouring entrepreneurial endeavour.
 However, there are considerable conceptual and empirical problems with a simplistic modernisation story of industrialisation.
Although not a discrete scale, the effects of number 5 can be seen in qualitative differences in industrialisation.
 In moderately backwards countries Factories were directed with banks towards capital and entrepreneurial guidance; in very backwards countries they were directed by banks and the state. There are historical similarities across all successful industrialisations. But there are big differences which are important to examine.In moderately backwards Germany capital was directed by banks whereas in very backwards Russia the state played a large role in directing capital.[page 353] Europe in the 19th C was a continent in which many different states were at many different states of backwardness.The degree of backwardness had a distinct impact on the way in which the state developed economically.Rezime: Polazeći od aktuelnih debata o potrebi reindustrijalizacije postsocijalističkih zemalja, u ovom radu autor se bavi „teorijom relativne zaostalosti“ koju je šezdesetih godina XX veka formulisao harvardski profesor ruskog porekla Aleksandar Geršenkron.Analizirajući ekonomsku istoriju zemalja koje su se razlikovale po stepenu privredne (ne)razvijenosti, Geršenkron je pokazao da se industrijalizacija „zaostalih“ zemalja nije odvijala po obrascu engleske „industrijske revolucije“. This substitution was not necessarily a conscious substitution; people groped for effective methods and substitutions were created as needed.Gerschenkron’s approach allows him to “predict” what he expects to find, and give him the ability to test his theory. Gerschenkron’s work is an attempt to explain the deviations from England’s method of industrialisation.It uses the degree of backwardness as an organising concept.