This book seeks to test the 'Varieties of Capitalism' thesis by examining how firms adapt to the pressures of increasing international competition. If different nations do have different modes of capitalism, different nations' economies would offer different competitive advantages in aninternational market, and successful firms would be those that exploited these comparative advantages and specialized in the competitive strategies facilitated by national institutions. One Political Economy, One Competitive Strategy? begins with an assessment of how many pharmaceutical firms in Germany, Italy, and the UK pursue strategies facilitated by national institutions governing the financial markets, antitrust activities, and the labour market. Quantitative analyses revealthat deviant firms, competing through institutionally unsupported strategies, outnumber conforming firms by far. Not only does this finding run counter to the expectations of the competitiveness literature, it brings up a whole new line of inquiry. How can firms compete through strategies that arenot supported by national institutions? The book addresses this question and illustrates that firms do not necessarily exploit comparative institutional advantages, but that they can also circumvent institutional constraints. International markets and individual collaboration on a contractual basisallow firms to compete despite comparative institutional disadvantages. These findings suggest that trade liberalisation does not lead to strategy specialisation but to strategy diversification, depending on the inventiveness of entrepreneurs to develop individual approaches to compete.