"The series of Industrial Development Reports is intended to provide new insights into the benefits and challenges of modern industrial development and the evidence for policy advocacy.
Over the past 30 years, industry has expanded rapidly in developing countries, driven by the explosive growth of manufacturing trade. Yet a substantial part of the developing world remains at risk of failing to establish a vibrant, competitive industrial economy. The Industrial Development Report 2009 is about the countries that have been left behind. It is also about the opportunities and constraints faced by two groups of countries: The countries of the ""bottom billion"" trying to break into global markets for manufactured goods, and the middle-income countries that are striving to move up to more sophisticated manufacturing. The report focuses predominantly on manufacturing, but it also discusses resource extraction, which is the other major type of industrialization in developing countries. Unprecedented changes in the global economy are redefining industrial development, opening some avenues and closing off others. Because countries differ in their structural characteristics, appropriate industrialization strategies must differ and evolve. The focus here is on three aspects of structural change in industry. As industrialization proceeds, what does it produce, where does it locate, and where is its output sold? The report seeks to improve our understanding of these processes of structural change, and sets out some economic policy responses to support breaking in and moving up in the global industrial economy. Following the tradition of previous Industrial Development Reports, the present report also reviews industrial activity worldwide, including measures of technological advance, and highlights significant structural differences between and within regions. The competitive industrial performance (CIP) index, which sets out to cap- ture the ability of countries to produce and export manufactures competitively, was first introduced in the UNIDO Industrial Development Report 2002-2003, ranking 87 countries. In this report, the coverage is increased to 122 countries."