The Caribbean’s vulnerability, however, originates not from episodic external events, but - more importantly and persistently - from idiosyncratic internal inertias. Challenging and changing this status quo in small states will require nothing less than a paradigmatic shift and systemic transformation to build resilience based on the needs of a sustainable future rather than accepting or reacting to a multiplex of challenging institutional and market conditions by means of traditional interventions. In essence, the Caribbean will need to innovate its way out - led by the private sector in partnership with public institutions and regional agencies. It concludes that, despite considerable policy intentions and interventions, and beyond financial and market cycles, structural innovation deficits in small states in the public and private sectors are persistent and worsening, consequently leading towards an unsustainable path for building resilience and improving economic development.