9: How Will Manufacturing Develop?: Two Paths for Industrialisation

The global manufacturing sector is changing rapidly due to new technologies and changing global trade patterns. Instead of just trying to cut costs, countries now need to focus on building strong manufacturing capabilities, such as investing in innovation, modern infrastructure and skilled workers. These capabilities help countries climb the global value chain (GVC) and take on higher-value tasks like research and development, design and marketing.

In the past, manufacturing jobs have shrunk in wealthier nations and grown in developing ones, as production shifted around the world. The Competitive Industrial Performance (CIP) Index shows that countries that focus on technology and high-quality exports do better in the long run.