Industrial Development Report – serie

The Industrial Development Report 2024 (IDR24) emphasizes the pivotal role the industrial sector plays in delivering sustainable development solutions, given its profound impact on economic, societal and environmental goals. Sustainable industrialization entails fighting climate change, promoting economic growth and generating millions of decent jobs while harnessing cutting-edge technologies. The report finds that every manufacturing job, on average, creates more than two jobs in other sectors of the economy. The manufacturing sector also significantly contributes to green innovation compared to other sectors, with 60 per cent of all green patents worldwide owned by industrial firms, despite representing a smaller share of the overall firm population. Accelerating sustainable industrial development is therefore crucial for achieving the Sustainable Development Goals (SDGs).

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.