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.



Catching-up and falling behind: Accounting for success and failure over time

Why do some countries succeed in catching-up while others fall behind? This question has intrigued policymakers, academics and industrialists alike for more than a century. At the extremes, the long-run trend since the Industrial Revolution seems to be towards divergence, not convergence, in productivity and income. But what history shows is that some countries have managed to catch-up, even overtake the leaders at different points in time, and when this has happened, technology and the environment that fosters it regularly turn up among the driving forces.


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