The material progress of an area, large or small, depends upon its adaptability in facing up to the continuous pressures exerted the world economy. What determines such flexibility remains as yet, despite recent research on this matter, an open question. This investigation of the Aachen-area woolen trades provides no new answer. All it pretends to do is to stress those strategic aspects of the institutional setting which, by their influence upon demand and supply conditions, point to some of the issues that might have relevance for an understanding of this important problem.