How do sectors evolve? In particular, what shapes the institutional structure of production – i.e. the division of labour between different types of industry participants? And how does that affect firms, their capabilities, and profits? Rather than taking the vertical layout of a sector as a given, recent research has focused on what drives “industry architectures” – stable but evolving patterns of dividing labour in a sector; and on the implications of these patterns. In our workshop, we will consider these topics, covering theory as well as empirical evidence.