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.



Critical factors for catching-up: Assessing the evidence

Knowledge and capabilities are increasingly critical to catching-up, a trend that is further accentuated by advances in ICTs – that is the view we have been examining. Can this be tested empirically? Using factor analysis, we seek to discern broad dynamic trends for a cross-section of countries and identify vectors of underlining factors that affect growth


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