In the previous chapter I pointed to the distortionary industrial growth in STEs, generating deviations in the pattern of structural change from what may be called the uniform pattern. These deviations tend to grow over time, increasingly setting STEs apart from the rest of the world with respect to structural characteristics. In this chapter, intra-sectoral distortions in STEs are outlined and explained! Industry, rather than any other sector, has been chosen for obvious reasons. Since distortions affecting the whole economy are generated within that sector, characteristics of intra-industry change are of greater importance than those elsewhere.