Industrial Development Report 2005

Capability Building for Catching-up - Historical, Empirical and Policy Dimensions

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In a world increasingly driven by innovation, framework conditions that are a prerequisite of economic catch-up have been transformed so as to encompass the various dimensions of innovative development as key ingredient. This edition of the Report argues that from the perspective of domestic policy making and international cooperation, more effort needs to be directed to structural issues related to capability building.



Accessing and mastering knowledge

The explosive growth in the stock of codified knowledge related to S&T is one of the most striking trends in history. This trend is of course part of a broader one toward increasing levels of production of information and its storage in a variety of formats, including paper, film, magnetic, and optical media. The amount of new information stored on any of these media doubled between 1999 and 2002, which implies a yearly growth rate of 30 per cent. Likewise, information flows through electronic channels have increased at breathtaking speed, a phenomenon fuelled partly by the growth in the number of Internet users and the amount of information stored on the web (Lyman and Varian, 2003). What is the potential significance of this trend for developing countries’ strategies and prospects?


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