Hugo Radice has called into question the claim that a transition to flexible specialisation and lean production is occuring. I think it is important to distinguish these two forms of organization. Flexible specialisation refers to a model of networks of small firms bound together in relations of trust, with the workforce enjoying almost complete autonomy. Bennett Harrison has demolished the idea that there is a trend towards this model in the global economy (LEAN AND MEAN, Basic Books). Lean production, in contrast, refers to a model where the following holds: layers of middle management are eliminated; inventories are reduced through the use of just-in-time practices; the workforce as a whole is reduced as individual workers incoporate tasks formally performed by separate departments (quality control, cleaning, etc.); and so on. I think the empirical evidence for this sort of transition is fairly compelling. Capitalism, of ocurse, is a system of combined and uneven development. So lean production forms of organization are not being introduced in all sectors and regions at the same rate. And the utopian claims found in the business press regarding lean production do not hold. But in my opinion the concept of lean production captures a significant element of the restructing of capitalism over the last years. Tony Smith (tonys@iastate.)