Winter 2010 / Issue 61 (originally published by Booz & Company)

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. 

 

The business insights you need to succeed. Get s+b’s best ideas delivered to your inbox twice a week.
PwC insights
PwC and the World Bank Group reveal what we can learn from tax regimes in 190 economies around the world.

Get the strategy+business newsletter delivered to your inbox