Today, countries around the world are seeking "smart" innovation-led growth, and hoping that this growth is also more "inclusive" and "sustainable" than in the past. This paper argues that such a feat requires rethinking the role of government and public policy in the economy - not only funding...

An extensive literature argues that India's manufacturing sector has underperformed, and that the country has failed to industrialize; in particular, it has failed to take advantage of its laborabundant comparative advantage. India's manufacturing sector is smaller as a share of GDP than that of...

Global Value Chains (GVCs) started to play an increasing and key role in the global economy from the 1990s on. The market mechanism in GVCs supports industrialisation in the Global South and under certain conditions product and process upgrading. But GVCs do not lead to the catching-up of...

We argue that the US trade and industry sector has experienced several unsustainable sectoral processes, including (i) a fall in the trade balance in machinery and equipment and high-tech (HT) industries, (ii) a rise in import multipliers in machinery and equipment and HT industries, (iii) a...

The paper analyses the enigmatic high growth in Ethiopia from 2004 to 2015 (10.9% p.a.) and gauges the prospects for the future. In 2000, Ethiopia was the poorest country on the globe in per capita GDP - a mere 124 USD in current prices. The main finding is that the take-off was driven by...

India presents an unique example of manufacturing capability in most sectors, but low integration into GVCs. This paper examines the reasons for India's low integration into GVCs, especially in the manufacturing sector. It argues that one of the reasons for India's low integration into GVCs is...

I study the effect of an innovation subsidy on the growth of firms in a developing country. Using administrative microdata for Brazil and difference-in-differences, I find that innovation subsidies drive firm growth by facilitating firm entry into high-tariff markets with domestically produced,...

This paper discusses a possible case for industrial policy, with special reference to the two emerging global giants, China and India. It begins with a clarification of the meaning of industrial policy, since not only does the term mean different things to different people, but the traditional...

In this paper we look at the economic development of Sub-Saharan Africa (SSA) in the context of structural transformation. We use Hidalgo et al.'s (2007) concept of product space to show the evolution of the region's productive structure, and discuss the opportunities for growth and...