Technological progress, structural change and trade integration

Productive capacities do not only develop through capital accumulation, but also through technological progress and structural change. Technological progress usually requires investment because much technology is embodied in machinery and other kinds of capital equipment. However, it also requires knowledge and know-how which people and organizations acquire through learning, and which are embodied in procedures and institutional arrangements. In particular, technological progress will not take place without technological capabilities — the skills, information and experience to build and reconfigure core production competences through new investment, incremental and radical product and process innovation and the development of new markets and linkages.

Sustainable Development Goals:

Affordable and Clean Energy

Industry, Innovation and Infrastructure

Peace, Justice and Strong Institutions