Eventually, a higher discretionary income yields a diversified demand for manufactured goods, as demand and consequently expenditure shifts away from agricultural products towards manufactured goods. This new demand, in turn, leads to the creation of new industries and new varieties of products in the economy (process of diversification), which is a key component of sustainable long-term economic development (Saviotti and Pyka, 2004). Demand for new products as well as the desire of firms to become more profitable triggers a process of diversification and consolidation within the manufacturing sector.