Kremer further posits that bottlenecks of all kinds increase the disincentives to invest in skills. If this were true, the O-ring production theory would have deeper implications for smaller firms in countries such as India. Such bottlenecks may take the form of ‘institutional voids’ in the product, capital or labour markets of such countries. They may also take the form of an absence of public goods such as law and order, water and electricity, education, roads, railways and other infrastructure. The lack of complementary public sector inputs and other institutional inputs pose MSMEs challenges that are unlike those faced by their larger counterparts. While the latter may fill in the gaps through vertical integration and build on economies of scale, MSMEs would find it difficult to do so, given their size. They would then find it worthless to build on their inputs, especially skills, in the face of unreliable or missing inputs from the rest of the economy.