Industrial Development Report 2002-2003

Competing Through Innovation and Learning

image of Industrial Development Report 2002-2003

This is the first publication in a new UNIDO series devoted to the various dimensions of industrial development. This series is intended to build on development policy experience and to advance the frontiers of current thinking, with a focus on the least developed countries. This report reviews the following topics: the ingredients of growth with equity; the predicament of the least developed countries; shortcomings of today’s policy models; spreading access to income-generating assets; providing greater symmetry in the costs and benefits of international compacts; and caring about future generations.



Supporting innovation and learning by firms

SUPPORT INSTITUTIONS AFFECT HOW-AND WHETHER-FIRMS MEET the information, skill, finance and other needs that are difficult to satisfy in open markets. Infrastructure determines the cost of operation and interacting with the outside world. A nurturing environment is required to foster vibrant industrial development. And ensuring access to vital services that support innovation and learning is a critical part of establishing that environment. Many of these services are supplied through the market in advanced countries, but even these countries find it necessary to augment what is supplied through the market with subsidized services. Various considerations provide ample justification for the provision of subsidized services to support the process of innovation and learning-even more for developing countries. Most important: what is being provided is, to a greater or lesser degree, depending on the service, a public good-in short. knowledge (or information) in one form or another.


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