1. Show me a nation (not a region) who has grown their industrial base without either mineral wealth or protectionism - then we can discuss if the periphery can take up that route.

2. Right now EU law prevents individual companies subsidising companies beyond a certain level of tax breaks.

As such, the chances of say Greece, developing an indigenous solar industry (which the desperately need and they have the climate for) are low...

When you have a low industrial base, the only meaningful way to grow it is either from some advantage (e.g. low labour costs, convenient transport links, etc.) or by subsidy measures that help some portion of the supply chain of companies get off the ground to the point where you have a cluster.

That's the unmentioned part of your "institutional conditions" which I know you're very well aware of. The auto industry is a classic example, which you've talked about before.