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This paper examines the marble industry of North-West Pakistan. Although this low-tech (LT) sector is characterized by a lack of innovation and resource wastage, it has been earmarked for upgrade as one of Pakistan’s three SME-based industries where policy or institutional actions can have the greatest positive impact for regional development. The aim of this study is to generate an in-depth understanding of the sector by exploring the perspectives of key stakeholders. In doing so, it is hoped that entrepreneurship and SME development will be stimulated with positive benefits for the region. A systemic perspective is employed to try and gain insight into interactions and connections between actors in the value creation system, to better identify where improvement might be made. The paper uses a multilevel analytical framework within a case study approach overall. The study adds to our knowledge of LT innovation, which tends to be forgotten in innovation policy, particularly in developing countries. The study also adds to our understanding of the potential for entrepreneurial behaviour at the micro-level where ongoing conflict is a significant element to consider in achieving change. The results of the study enable a sharper focus on where improvement attempts should be made.
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