Objective: The aim of this tool is to capture a country’s different types of industrial capabilities and to facilitate a better understanding of the role they play in industrial production, technological and structural change. It builds indicators for the factors that either determine or enable processes of industrial capabilities development and accumulation and links them to different types of industrial outputs, thereby explaining and measuring the role of industrial capabilities as main drivers and enablers of countries’ industrial competitiveness and development.
Key questions addressed: Where does a country stand with regard to the production capacity as well as the production and organisational capabilities owned by its firms? What can be said of its firms’ technological capabilities and innovation capabilities?

What are the country’s industrial capabilities related to physical and institutional infrastructures?

How do the country’s industrial capabilities compare to peer or benchmark countries?

How have these different types of capabilities changed over a certain period of time in the past? Has the country’s industrial sector seen fast or slow processes of industrial capabilities development and accumulation? How can the country’s industrial capabilities be improved?
Indicators used:

Share of Manufacturing in Total Gross Fixed Capital Formation (GFCF)

Share of GFCF in GDP

Manufacturing Value Added (MVA) per Manufacturing Establishment

Electric Power Consumption (kWh per capita)

Share of Secondary and Tertiary Educated in Total Population

Share of Science and Engineering Students in Total Tertiary Graduates

Manufacturing Wages per Worker

Labour Force Participation Rate (LFPR)

Vocational Students in Secondary Education as a Share of Population

Share of Secondary and Tertiary School Enrollment in Population

Employment per Manufacturing Establishment

ISO 9001 Certificates per 1,000 People

Gross Expenditure on Research & Development (GERD) per capita

Share of R&D personnel per 1,000 Full-Time Employees

Business-Financed GERD in Total GERD

Government-Financed GERD in Total GERD

GERD on Applied Research in Total GERD

GERD on Experimental Development in Total GERD

Capital Goods Imports

FDI Inflows as a Share of GDP

Intellectual Property Rights Payments

Stock of Patents in Force

Scientific and Technical Journal Articles

Patents Granted to (Non-)Residents per Patent Application by (Non-)Residents

Growth Rate of Patent Applications by Residents

GERD in Basic Research

Share of Patent Applications by Non-Residents

Goods Transported by Roads

Goods Transported by Railway

Freight Transported by Air Transport

Telephone Lines per 100 people

Mobile Cellular Subscriptions per 100 people

Personal Computers per 100 people

Internet Users per 100 people

Domestic Credit to Private Sector by Banks as a Share of GDP

Turnover Ratio

Cost of Business Start-up Procedures as a
Percentage of GNI per capita


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