Objective: Upgrading a country’s industrial sector and exports towards more attractive and higher value-added activities is an important dimension of industrial development. This tool aims to outline methodologies to analyse upgrading processes within a country’s industrial sector at various levels, including the macro level (i.e. the industrial sector as a whole), the sub-sectoral level and the product level.
Key questions addressed:

At the macro level, how fast have the country’s productive and export structures moved towards higher-technology activities or products, relative to its comparators? How diversified are these higher-technology activities/products?

Within a given sub-sector, what are the products that generate higher returns? How well did the country tap into those products, relative to its comparators?

What have been and what can be the upgrading strategies for different products within a sub-sector? Do they contribute to higher value-added relative to a given sub-sector’s total output?

Indicators used:

Share of medium- and high-tech (MHT) activities in Manufacturing Value Added (MVA)

Share of MHT exports in total manufacturing exports

Hirschman-Herfindahl Index for MHT production

Hirschman-Herfindahl Index for MHT exports

Share of high-value products in sub-sector’s total production

Share of high-value products in sub-sector’s total exports

Export unit values

Change in world export market share

Share of value-added in total output of a sub-sector


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