Industrial Development Report 2020

Industrializing in the Digital Age

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The emergence and diffusion of advanced digital production (ADP) technologies clustered around the fourth industrial revolution (4IR) is radically altering the nature of manufacturing production, increasingly blurring the boundaries between physical and digital production systems. The significant requirements of ADP technologies are opening questions on whether industrialization is still a feasible or even a desirable strategy to achieve economic development. This publication contributes to this debate by presenting fresh analytical and empirical evidence on the future of industrialization in the context of a technological paradigm shift. According to the report, it is by engaging with industrialization that countries can build and strengthen the skills and capabilities needed to compete and succeed within the new technological paradigm.



A. 2 Knowledge-intensive business services and robots (Chapter 2)

Growing intersectoral linkages between manufacturing and services have contributed to the “blurring of traditional sectoral boundaries” (Berardino and Onesti 2018) in which the role of each sector in the production of goods is increasingly difficult to disentangle. Measuring how services, particularly knowledge- intensive ones, contribute to the production of manufactured goods is not easy. It requires the use of specific indicators capable of isolating their contribution. An approach used extensively in the literature relies on the use of input–output-based measures to identify and quantify the intersectoral linkages between manufacturing and services.


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