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Industrial Development Report 2016

The Role of Technology and Innovation in Inclusive and Sustainable Industrial Development

image of Industrial Development Report 2016
This report looks at how technology and innovation achieves inclusive and sustainable industrial development (ISID). Its main finding is that ISID is feasible and technology can simultaneously serve all three dimensions of sustainability, including economic, social and environmental. Rapid inclusive and sustainable industrialization can happen more frequently provided that policymakers firmly steer the industrialization process with opportune policies and avoid past mistakes. In some cases, the spread of technology has not materialized in concrete growth opportunities because of the lack of technological capabilities. Innovation needs to be supported by interventions strengthening the process from invention to adoption, as capabilities are developed and high tech manufacturing sectors are created, seeing higher rates of sustainable growth.

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The Competitive industrial performance index

The competitiveness of manufacturing industry is one of the basic determinants of long-run sustainable growth, so it is important to understand countries’ relative positions on this metric and on the determinants of competitive ability. Shifts in the relative position of industrialized and emerging industrial economies in manufacturing value added (MVA) and industrial exports are, to a large extent, attributable to changes in individual countries’ industrial competitiveness.

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