Executive Summary

The Fourth Industrial Revolution1 and emerging technologies--such as the Internet of Things, artificial intelligence, robotics and additive manufacturing--are spurring the development of new production techniques and business models that will fundamentally transform production. Both the speed and the scope of technological change, combined with the emergence of other trends, add a layer of complexity to the already challenging task of developing and implementing industrial strategies that promote productivity and inclusive growth. Further, recent changes put the competitiveness paradigm of low-cost manufacturing exports as a means for growth and development at risk. Countries need to decide how to best respond in this new production paradigm vis-à-vis their national strategies and their ambition to leverage production as a national capability. This requires countries to first understand the factors and conditions that have the greatest impact on the transformation of their production systems and then assess their readiness for the future.