Stringy instantons and dualities

We discuss non-perturbative corrections to the gauge kinetic functions in a four-dimensional N=2 gauge theory realized with a system of D7/D3-branes in a compactification of type I' theory on T_4/Z_2 x Z_2. The non-perturbative contributions arise when D(-1) branes, corresponding to stringy instantons, are added to the system; such contributions can be explicitly evaluated using localization techniques and precisely match the results predicted by the heterotic/type I' duality. This agreement represents a very non-trivial test of the stringy multi-instanton calculus.