“
In developing countries, productivity
accounts for a significant share of the growth of high-tech industries
Factor contribution to growth (percent)
2.6%
40
4.7%
Capital Labour Natural resource Energy Productivity
30
20
10
0
–10
High-income countries
Developing countries
Note: The analysis covers 40 countries. Based on income, eight are developing countries and the rest are high income. Income classification based on Annex A1, Table A1.2. Source: UNIDO elaboration based on World Input-Output Database (Timmer and others 2015).
in manufacturing and shifts resources towards hightech industries at higher incomes. Productivity is the dominant contributor to the growth of hightech industries, and their growth does not depend significantly on an increase in the use of energy and natural resources. In developing countries, productivity accounts for a significant share of the growth of high-tech industries. But other factors—energy and capital investment —make a nontrivial contribution, too. So, although the importance of productivity for the growth of hightech industries is common to developing and highincome countries, developing countries differ in that the increased use of energy and labour accompanies growth—hence, expanding these activities is more inclusive in job terms, but it is less sustainable. Structural change and inclusive and sustainable industrial development ISID has the three complementary dimensions of sustained economic growth, social inclusiveness and environmental sustainability. The objective is thus industrial development that maximizes the synergies and
1 Moving towards inclusive and sustainable industrial development
Figure 1.12 Annual average manufacturing growth and factor contributions, high-income and developing countries, 1995–2007
Figure 1.13 Selected low-tech, labour-intensive industries, 1995–2007 –1.1%
Leather, leather and footwear 4.5% Factor contribution to growth (percent)
Factor contribution to growth (percent)
Textiles and textile products 50
Capital Labour Natural resource Energy Productivity
0
75
50
–3.0%
2.8%
Capital Labour Natural resource Energy Productivity
25
0 -50
–25
–100
High-income countries
Developing countries
–50
High-income countries
Developing countries
Note: Income classification based on Annex A1, Table A1.2 Source: UNIDO elaboration based on World Input-Output Database (Timmer and others 2015).
39