In spite of the expectations that exist regarding efforts to develop competence and in spite of the large amounts of resources devoted to it, there is a marked lack of empirically-based research on competence development in companies and other organizations. The purpose of this article is to present a review of research on strategies for competence development in organizations, their prerequisites and effects. More specifically, the following three questions will be addressed: (i) Why do organizations invest in competence development? (ii) What effects can realistically be achieved through competence development? (iii) What characterizes successful strategies for competence development in organizations? Before these questions are dealt with, different views of the meaning of the concepts of competence and competence development are presented and discussed. (Contains 1 table.)