The IDR 2016 findings in the context ofthe 2030 Agenda for Sustainable Development

Taizo Nishikawa, Ph.D.
Deputy to the Director-General
United Nations Industrial Development Organization (UNIDO)

18 December 2015

Origins of the Post 2015 Development
AgendaUNGA Special Event towardachieving MDGs in Sep 2013

SG’sSynthesis
Report inJan 2015
The Rio+20 outcome
document in June 2012

Open Working
Group forSDGs
Mar 2013 July 2014

Intergovernmental
negotiation on thepost 2015 DA
Jan- July 2015

UNGA Res in Sep 2014

the proposal of OWG
shall be the basis for
integrating SDGs intothe post-2015 DA23

Shifting and Merging of Focus Areas/Proposed Goals
Focus Area
Document
19 FAs (21 February)
FA 9.
Industrialization

Working Document Zero Draft (2 June 2014) ZD rev 1 (30 June 2014)16 FAs (18 April)
17 Proposed Goals
17 Proposed Goals
FA 9.
Industrialization andpromoting equality
among nations

equality

FA 12 Promoteequality

FA 11.
Employmentand decent
work for all

MergedFinal text (19 July 2014)17 Proposed Goals
Goal 9. Build resilient

Goal 9. Promotesustainableindustrialization

Goal 9. Promotesustainableinfrastructure andindustrialization andfoster innovationinclusive and sustainableindustrialization and foster

Goal 10. Reduce
inequality
within andamong nations

Goal 10. Reduce
inequality within andbetween countries

Goal 10. Reduce
inequality within andbetween countries

infrastructure, promote

innovation

infrastructure

employment
FA 10.
Infrastructure
infrastructure
FA 8. Economicgrowth

FA 8. economicgrowth,
employment andinfrastructure

Goal 8.Promotestrong, inclusive andsustainableeconomic growthand decent work forall

Goal 8. Promote sustained,
inclusive and sustainableeconomic growth, fullproductive employment
and decent work for all

Goal 8. Promotesustained, inclusive andsustainable economic
growth, full andproductive
employment anddecent work for all

4

TRANSFORMING OUR WORLD:The 2030 Agenda for Sustainable Development• Preamble: 5Ps
This Agenda is a plan of action for People, Planet and Prosperity. It also seeks
to strengthen universal Peace. All countries and stakeholders, acting incollaborative Partnership, will implement this plan.

• Declaration: vision, shared principles and commitments.
• Sustainable Development Goals and targets: 17 SDGs& 169 targets.
• Means of implementation and the GlobalPartnership.
• Follow-up and review.
5

6

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Goal 9: Science, Technology &Innovation Targets• Build resilient infrastructure, promotesustainable industrialization and foster innovation– 9.5: Enhance scientific research, upgrade the technological capabilities ofindustrial sectors in all countries, in particular developing countries, including,by 2030, encouraging innovation and substantially increasing the number of
research and development workers per 1 million people and public and private
research and development spending.
– 9.b: Support domestic technology development, research and innovation indeveloping countries, including by ensuring a conducive policy environment
for, inter alia, industrial diversification and value addition to commodities.
– 9.c: Significantly increase access to information and communications
technology and strive to provide universal and affordable access to theInternet in least developed countries by 2020.
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Science, Technology & Innovation and other SDGs

• Goal17• Technology• Enhance access to ST&I ..through global technology facilitation mechanism• Promote the development, transfer…of environmentally sound technologies
to developing countries on favorable terms.
• Fully operationalize the technology bank and ST&I capacity-buildingmechanism for LDC• MOI• Technology Facilitation Mechanism• TFM was established by AAAA to support SDGs
• TFM will be composed of UN Interagency TT on ST&I for the SDGs (UNDESA,UNIDO, UNESCO, UNCTAD, ITU, WIPO & WB) and on-line platform• On-line platform will establish comprehensive mapping of, and serve as agateway for, information on ST&I initiatives, programmes, etc.

9UNIDO activities to promote technologies••••••

Climate Technology Centre Network (CTCN), aimed at responding to the demands fortechnical assistance by developing countries through a network of selected specializedinstitutions.
National Cleaner Production Centres (NCPCs) located in various developing countries
to assist national industries, and in particular SMEs, to adopt sustainable production
techniques; these have been linked with each other through a Resource Efficiency andCleaner Production (RECP) network
International Technology Centers (ITCs) located in various countries, including
developing countries, to develop specific technologies, especially in the field ofrenewable energies.
Investment and Technology Promotion Offices (ITPOs), located primarily in a number ofindustrialized countries for the purpose of supporting and facilitating investment andtechnology flows to developing countries.
Centres for South-South Industrial Cooperation located in emerging economies andexpected to be expanded to other middle income countries with the objective ofpromoting South-South investment and technology flows.
The UNIDO Institute for Capacity Development aimed at building up national capacities
in developing countries to meet the challenges of industrial development.

1011IDR conceptual framework for technology and innovation
boosting sustained growthTechnological change
Structural transformation
Conditions:
Human capital
Innovation systems
Upgrading in clusters
Global value chains
Identifying and nurturing growth enhancing sectors
Optimizing contributions from FDI

Higher average growth rate

Less growth volatility

Higher duration of growth

Sustained growth
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IDR conceptual framework for technology and innovation
boosting inclusivenessTechnological change
Structural transformation

Conditions:
Factor and skills endowment
Type of innovation
International conditions
Social policies

Employment

Income distribution

Social inclusiveness
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IDR conceptual framework for technology and innovation
boosting environmental sustainability
Technological change
Structural transformation

Conditions:
Regulation and international agreementsMarket pull factors
Global value chains and technology
transfers

Change in production process

Change in the production structure

Environmental sustainability
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Charting ISID

ISID

15

Manufacturing still matters. In contrast with the dominant point of view in theacademic and policy debate the IDR 2016 finds that the share of manufacturing
value added is increasing in developing countries.
16Technological change happens especially in the manufacturing sector
Agriculture

Manufacturin
gMining,
construction
and utilities

Agriculture

China

0.04

3.78

0.64

0.21

Poland0.06

0.70

0.05

0.19

Turkey

0.01

1.23

0.05

0.30

Australia

0.56

4.29

1.85

0.86

France

0.44

6.82

0.44

0.94

Germany

0.65

7.93

0.15

0.42

Korea,
of

0.12

8.81

1.58

0.47

USA-10.5

0.3

0.7

R&D intensity expenditures (expenditures
for research and development value addedratio) are concentrated especially in the
manufacturing sector if compared to othercompeting sectors

Foreign direct investments areconcentrated especially in the
manufacturing sector if comparedto other competing sectors
17IDR chapters• Chapter 1. Moving towards inclusive and sustainable industrial
development• Chapter 2. Wanted: technology and innovation as drivers of growth• Chapter 3 Enhancing conditions and technological capabilities forsustaining growth• Chapter 4 Promoting social inclusiveness via technology• Chapter 5 Using technology to move to greener industrial development.
• Chapter 6 Policy implications• Chapter 7 Trends in manufacturing value added and manufactured exports• Chapter 8 The competitive industrial performance index

18Introducing the next presentations• Prof. Bart Verspagen will introduce the empirical/analytical findingsof the IDR concerning: 1) the impact of technological change on
structural change and on the economic, social and environmental
components of ISID contained in Chapters 1 – 5.
• Dr Ludovico Alcorta will explain the conditions under which
technological change can promote inclusive and sustainableindustrial development and will discuss the policies needed to boost
technology for ISID contained in Chapters 3 – 6.
• Dr Nicola Cantore will briefly describe recent trends at global level interms of manufacturing value added, exports, energy and resource
intensity and the industrial competitiveness on the basis of the rich
UNIDO datasets (Chapters 7 – 8)
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MANY THANKS

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