Data Points: Manufacturing’s Economic Footprint
How big a role does manufacturing play in a nation’s economic output? On average, share of GDP rises as countries move from the low to the middle stage of economic development (from “factor-driven” to “efficiency-driven,” as defined by the World Economic Forum). But as national economies evolve to the “innovation-driven” stage, manufacturing’s share tends to decline. One likely reason: Product research, engineering, and design tend to remain in developed countries, but manufacturing flows to lower-cost nations.
Note: The World Economic Forum’s Global Competitive Index places countries into the five categories of economic development above based on their gross domestic product per capita (at market exchange rates) and their reliance on exports of mineral goods as a percentage of total exports of goods and services.
Source: “A Renaissance at Risk: Threats and Opportunities for Swiss Manufacturing,” a joint study of the Swiss-American Chamber of Commerce and Booz & Company, http://strategyand.pwc.com/Renaissance-at-Risk; the World Economic Forum
