This report focuses on the role of innovation in country competitiveness. The first part of the report contains the Industrial Development Scoreboard that benchmarks and ranks the industrial performance and capability indicators of 87 countries. The second part focuses on the processes of industrial innovation and learning in developing countries and economies in transition and discusses the range of policies that can be implemented to facilitate those processes.

The report concludes that industrial and technological capabilities are highly concentrated in a few industrialised and developing economies, and this concentration is declining in the former and increasing in the latter.The report also emphasises that building capabilities demands a strong policy support, combining an export focus with complementary efforts to build skills, enhance firms' technological capabilities, foster supporting institutions and to attract foreign resources. This, the report suggests, is primarily the responsibility of individual governments, but international institutions can and should provide guidance and assistance.


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