© Industry 4.0 Readiness Index - Amazon S3...4 Global Industry 4.0 Readiness Report 2016-2017 Methodology Countries This Global Industry 4.0 Readiness report includes 120 countries.Only

danish institute

of industry 4.0

dii 4.0

Global Industry 4.0 Readiness Report 2016

© Industry 4.0 Readiness Index

January 2017

2016

dii 4.0

About DII 4.0

Danish Institute of Industry 4.0 (DII 4.0) is a Danish non-profit organisation founded with the purpose of promoting Industry

4.0 in Denmark and facilitating the adoption of Industry 4.0 in Danish manufacturing. DII 4.0 is the only organisation that

deals exclusively with Industry 4.0 in Denmark. Our first and foremost responsibility is to serve as a professional body

representing and safeguarding the interest of Danish corporations with respect to Industry 4.0 and other closely related

areas. We bring industry professionals and companies across industries and academics together to promote Industry 4.0

and facilitate the adoption of Industry 4.0 in a joint effort. By bringing industry professionals and companies across industries

and academics together we unite resources and simultaneously foster cross-company and cross-industry collaboration. In

order to foster and allow for seamless and smooth collaboration, we recognise interests of conflict and competitive

misalignment, thus Danish subsidiaries of foreign multinational corporations are not eligible to participate in our exclusive

network if any of their activities conflict with a Danish member's interest.

ss

danish institute

of industry 4.0

4.0

dii 4.0

Global Industry 4.0 Readiness Report 2016

© DII 4.0 Readiness Index

AuthorsJonas Faarup

Andreas Faarup January 2017

Global Industry 4.0 Readiness Report is Danish

Institute of Industry 4.0's annual global report.

For more information, please visit:

www.DII4.dk/readiness

Danish Institute of Industry 4.0

Copenhagen

© Copyright 2017

We encourage use of this report, both non-

commercially and commercially. However, we

kindly ask you to provide source documentation.

ISBN: 978-87-40485-22-6

Terms of use & disclaimer:

This report includes data as well as information

that were compiled and/or collected by Danish

Institute of Industry 4.0. Data in this report is

subject to change without notice.

Although Danish Institute of Industry 4.0 strives to

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step to ensure that the data compiled and/or

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Danish Institute of Industry 4.0 provides the data

“as is, as available”, and without any warranty of

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4.0 accepts no liability for any use of the provided

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Institute of Industry 4.0 will not be liable to users

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Data and information provided in this report is free

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1 Global Industry 4.0 Readiness Report 2016-2017

Contents

Preface 2

Executive Summary 3

Methodology 4

Countries 4

Readiness Pillars 6

Weighting 7

Score adjustment 8

Rankings 9

9

10

11

12

13

14

15

16

Overall

Global Industry 4.0 Readiness Index 2016

Basic Enablers

Driving forces

Industry 4.0 specific enablers

Demand factors

Technological sophistication

Enterprise excellence

Innovation aptitude 17

EU 18

Global 20

Future outlook 21

Strategic Implications 22

Future shifting global flows – the new era of reshoring? 23

Readiness & economic development 25

Growth 26

Outlook - Global Industry 4.0 Readiness 2021 27

Country Profiles 28

Appendices 147


Preface This report and © Industry 4.0 Readiness Index are a part of Danish Institute of Industry

4.0's annual global analysis. This report, and the readiness index, serve to inform

governments, companies, academics, institutions and others who might be interested.

If economies and governments wish to sustain their current respective manufacturing

position, or even improve it, they need give serious consideration to Industry 4.0.

Government as well as institutions and other stakeholders concerned with

manufacturing or technology should use this report to identify their country's strengths

and weaknesses in terms of Industry 4.0 readiness, and subsequently assist in building

their country's areas of weakness as well as further developing their areas of strength.

Manufacturers should use this report on a strategic level. During recent decades

outsourcing and offshoring, primarily to countries endowed with factors such as low-

cost labour, has grown substantially. Industry 4.0 is now changing the manufacturing

landscape globally. Therefore, manufacturers need to seriously consider that technology

is developing at exponential and unprecedented speed, and whether they have their

operations positioned in countries that can accommodate Industry 4.0 in due time.

Manufacturers' locations of their value chain operations should be geared for the future,

and not for the present moment.

Lastly, we hope that this report may help academics in their research or studies.

This report is solely authored by Danish Institute of Industry 4.0.

Jonas Faarup Andreas Faarup Head of Institute Head of Insights

[email protected] [email protected]

mailto:[email protected]



Executive Summary

Global Readiness Landscape

North America, Western Europe, Scandinavia, a few small Asian countries and Qatar

currently exhibit the strongest positions in terms of Industry 4.0 readiness. On the other

hand, Africa, South America, the Middle East, Western Asia as well as the South-eastern

part of Europe are the laggards and by no means ready to accommodate the future

waves of technology and digitization in industrial manufacturing. Nevertheless, even

those countries which are best positioned for embracing Industry 4.0 are currently not

ready to fully adopt Industry 4.0 and exploit all the opportunities that it offers.

Future Outlook - EU

From 2000 to 2015 manufacturing has gone from accounting for 14.7% to 12.5% of the

total economy of the EU. However, Industry 4.0 offers new opportunities and new

dynamics. As the EU is well-positioned for Industry 4.0 on a global basis; an average

score of 4.14 - 38% above the global average of 3 - the EU has the potential to turn the

negative trend of the last couple of decades around, and return manufacturing to its

past glory. Especially, the northern part of the EU - Belgium, Denmark, Finland, Ireland,

Netherlands, United Kingdom & Sweden - exhibit a high readiness level of 5.6 - 86%

above the global average.

Reshoring

Low-cost labour countries have been the main targets for outsourcing and offshoring

in the past decades. However, Industry 4.0 is expected to change the global

manufacturing landscape, as production becomes more capital intensive and the

advantage of low-cost labour countries therefore erodes. Moreover, Industry 4.0 allows

manufacturers to increase their competitiveness both with respect to price and other

factors such as quality, delivery time, flexibility and customization. It is clear that labour

cost levels highly, although not perfectly, correlate with Industry 4.0 readiness, thus

reshoring from countries with low Industry 4.0 readiness levels, the countries with low-

cost labour as well, to countries with high Industry 4.0 readiness levels will be feasible in

the coming decades.

Readiness & Economic Development

It is no surprise that Industry 4.0 readiness highly correlates with economic

development, therefore many of the advanced economies are naturally ahead, and more

ready for Industry 4.0. However, the advanced, and more ready, countries should actively

foster and strengthen their readiness in their respective countries in order to stay ahead

of the less advanced, and less ready, countries. It is particularly important that the

advanced countries work to strengthen their position further, as a majority part of the

less ready countries exhibit high growth rates. The high growth rates of these countries

combined with high correlation between Industry 4.0 readiness and economic

development constitute the risk that these, currently, less advanced countries develop

and become ready for Industry 4.0.


Methodology

Countries

This Global Industry 4.0 Readiness report includes 120 countries. Only countries for which

sufficient data could be accessed were included. However, every region in the world is

represented in the report through one or several countries.

Albania

Argentina

Armenia

Australia

Austria

Azerbaijan

Bahrain

Bangladesh

Belgium

Bolivia

Bosnia and Herzegovina

Botswana

Brazil

Bulgaria

Burundi

Cambodia

Cameroon

Canada

Chile

China

Colombia

Costa Rica

Cote d'Ivoire

Croatia

Cyprus

Czech Republic

Denmark

Ecuador

Egypt, Arab Rep.

El Salvador

Estonia

Ethiopia

Finland

France

Gabon

Gambia, The

Georgia

Germany

Ghana

Greece

Guatemala

Haiti

Honduras

Hong Kong SAR, China

Hungary

Iceland

India

Indonesia

Iran, Islamic Rep.

Ireland

Israel

Italy

Jamaica

Japan

Jordan

Kazakhstan

Kenya

Korea, Rep.

Kuwait

Kyrgyz Republic

Latvia

Lebanon

Lithuania

Luxembourg

Madagascar

Malawi

Malaysia

Malta

Mauritius

Mexico

Moldova

Mongolia

Morocco

Mozambique

Namibia

Nepal

Netherlands

New Zealand

Nigeria

Norway

Oman

Pakistan

Panama

Paraguay

Peru

Philippines

Poland

Portugal

Qatar

Romania

Russian Federation

Rwanda

Saudi Arabia

Senegal

Serbia

Singapore

Slovak Republic

Slovenia

South Africa

Spain

Sri Lanka

Swaziland

Sweden

Switzerland

Taiwan, China

Tajikistan

Tanzania

Thailand

Trinidad and Tobago

Tunisia

Turkey

Uganda

Ukraine

United Arab Emirates

United Kingdom

United States

Uruguay

Venezuela, RB

Vietnam

Zambia

Exhibit 1 – Overview of analysed countries


All regions of the world are widely represented in the report.

The included countries collectively account for $12.324 trillion in terms of annual

manufacturing value, as of 2016.

>200 11

100-200 10

50-100 13

20-50 18

10-20 9

5-10 14

< 5 45

Total 120

Value-added1 No. of

bn. 2016 Countries

Exhibit 2 – Region split (number of countries)

Europe

Sub-Saharan Africa

Middle East & North Africa

Latin America and the

Caribbean

East & Central Asia

Commonwealth of Independent

States

Northern America

Australia and New Zealand

Total:

$12.324 trillion Europe

Sub-Saharan Africa

Middle East & North Africa

Latin America and the Caribbean

East & Central Asia

Commonwealth of Independent

StatesNorthern America

Australia and New Zealand

Number of countries per category

33 22 20 19

16 6 2 2

Exhibit 3 – Region split (value added, manufacturing $)

1 Value added, manufacturing ($)


Readiness Pillars

Each country's Industry 4.0 readiness has been assessed on the basis of 7 main pillars,

which comprised a total of 23 measurements.

Driving forces

Level of medium and high-tech manufacturing

activities

Usage of Information & Communication specific

technology

Wage level

Government vision for ICT

usageCompetition

Exhibit 4 – Readiness Pillars

Industry 4.0

Readiness

Technological

sophistication

Demand

factors

Basic enablers

Innovation

aptitudeInnovative capacity

Sophistication of demand

Electricity infrastructure

Educational supply

Educational maturity

Proficiency of financial marketmarketCorporate training and educationeducation

Sophistication of competitive advantageadvantageBreadth of value chain operations

Complexity of production processes

Knowledge-intensive employment

Fostering of talent

Access to scientists and engineers

Market access to newest technologies

Enterprise

excellence

Excellence of scientific research institutions

Educational excellence of math and science

programmes

Readiness to devolve decision-making and

responsibilities

Usage of general

technology

Industry 4.0

specific

enablers

Pillars Measurements

http://reports.weforum.org/global-information-technology-report-2016/networked-readiness-index/#indicatorId=EOSQ130



Weighting

Each of the total 24 measurements have been weighted in the overall score according

to their relevance and importance.

Exhibit 5 – Weighting

Basic enablers

Driving forces

Industry 4.0

specific enablers

Demand factors

Technological

sophistication

Enterprise

excellence

Innovation

aptitude

Wage level

Government vision for ICT

usageCompetition

Innovative capacity

Sophistication of competitive advantage

Breadth of value chain operations

Complexity of production processes

Pillar weighting Measurements weighting

Excellence of scientific research institutions

Educational supply

Educational maturity

Proficiency of financial marketmarket

Corporate training and education

Wage level

Government

Competition

Readiness to devolve decision-making and responsibilities

Knowledge-intensive employment

Market access to newest technologies

Access to scientists and engineers

Fostering of talent

Sophistication of demand

Usage of general technology

Level of medium and high-tech manufacturing activities

Educational excellence of math and science programmes

Usage of Information & Communication specific technology

5 %

10 %

2 %

10 %

15 %

2 %

10 %

2 %

2 %

5 %

2 %

1 %

5 %

1 %

3 %

2 %

2 %

2 %

3 %

2 %

3 %

10 %

1 %

5 %

22 %

27 %

2 %

19 %

6 %

19 %

Electricity infrastructure



Score adjustment

To provide a more accurate view of reality, the original scores have been adjusted based

on simple exponential regression. This means that the adjusted scores become

progressively higher, the higher original score. It also means that the low original scores

are relatively more discounted than higher original scores. The rationale behind this is

that Industry 4.0 requires certain levels on a number of areas, most notably with respect

to the workforce and technology, thus lower scores are not just proportionally worse,

but relatively more worse than their higher counterparts are. E.g. a country that has a

workforce that is half as sophisticated in terms of education than another country as

well as half as sophisticated in terms of technology capabilities is not just half as ready

for Industry 4.0, it is a lot less ready.

Exhibit 6 – Score adjustment

Original score

Adjusted

score

0 1 2 3 4 5 6 7 8 9 10

10

9

8

7

6

5

4

3

2

1

0

Adjusted score = e0.24 · original score – e0

Formula


Rankings

Overall

According to our analysis, North America, Western Europe, Scandinavia, a few Asian countries - Hong

Kong, Japan, Republic of Korea (South Korea), Malaysia, Taiwan and Singapore - and Qatar in the Middle

East are currently the countries which exhibit the best outlook in terms of adopting Industry 4.0 and its

related features.

On the other hand, areas such as Africa, South America, the Middle East, Western Asia as well as the

South-eastern part of Europe exhibit the worst outlook with scores of such low levels that they are by

no means ready to embrace Industry 4.0.

While a few areas - North America, Western Europe, Scandinavia, a few small Asian countries and Qatar

- exhibit fairly high levels of Industry 4.0 readiness, even those areas only have scores of between 5 to 7,

thus even the most well-positioned areas do not currently have sufficiently high levels of readiness to

fully adopt and exploit Industry 4.0 and all its related technologies.

Low Medium High

Level of readiness…

Exhibit 7 – Global Readiness


Global Industry 4.0 Readiness Index 2016

Rank Country Score Rank Country Score Rank Country Score

1 Singapore 6.6 41 Indonesia 3.1 81 Zambia 2.2

2 Switzerland 6.6 42 Bahrain 3.1 82 Mongolia 2.2

3 Finland 6.0 43 Poland 3.1 83 Tunisia 2.2

4 Germany 5.9 44 Philippines 3.0 84 Cote d'Ivoire 2.1

5 Norway 5.8 45 China 3.0 85 Albania 2.1

6 Japan 5.8 46 Trinidad and Tobago 3.0 86 Georgia 2.1

7 Ireland 5.7 47 Latvia 2.9 87 Armenia 2.1

8 Netherlands 5.7 48 Chile 2.9 88 Honduras 2.1

9 United States 5.6 49 Costa Rica 2.8 89 El Salvador 2.1

10 United Kingdom 5.6 50 Cyprus 2.8 90 Botswana 2.1

11 Denmark 5.5 51 Romania 2.8 91 Vietnam 2.1

12 Sweden 5.4 52 Mexico 2.8 92 Ecuador 2.0

13 Belgium 5.2 53 South Africa 2.8 93 Pakistan 2.0

14 Taiwan, China 5.2 54 Russian Federation 2.8 94 Ghana 2.0

15 Israel 5.1 55 Turkey 2.7 95 Tajikistan 2.0

16 France 5.0 56 India 2.7 96 Nigeria 1.9

17 Austria 4.9 57 Greece 2.7 97 Peru 1.9

18 Korea, Rep. 4.7 58 Panama 2.6 98 Bosnia and Herzegovina 1.9

19 Qatar 4.6 59 Mauritius 2.6 99 Venezuela, RB 1.9

20 Canada 4.5 60 Brazil 2.6 100 Serbia 1.9

21 Hong Kong SAR 4.5 61 Lebanon 2.6 101 Gambia, The 1.9

22 Malaysia 4.4 62 Croatia 2.5 102 Egypt, Arab Rep. 1.9

23 Luxembourg 4.3 63 Bulgaria 2.5 103 Moldova 1.9

24 Australia 4.2 64 Iran, Islamic Rep. 2.5 104 Bangladesh 1.8

25 Iceland 4.0 65 Ukraine 2.5 105 Cameroon 1.8

26 New Zealand 4.0 66 Jamaica 2.5 106 Bolivia 1.7

27 Czech Republic 4.0 67 Sri Lanka 2.4 107 Ethiopia 1.7

28 Slovenia 3.9 68 Oman 2.4 108 Kyrgyz Republic 1.7

29 United Arab Emirates 3.8 69 Kuwait 2.4 109 Uganda 1.7

30 Italy 3.8 70 Kazakhstan 2.3 110 Nepal 1.6

31 Spain 3.6 71 Guatemala 2.3 111 Paraguay 1.5

32 Portugal 3.6 72 Uruguay 2.3 112 Gabon 1.5

33 Saudi Arabia 3.6 73 Namibia 2.3 113 Mozambique 1.5

34 Estonia 3.5 74 Morocco 2.3 114 Tanzania 1.5

35 Lithuania 3.5 75 Colombia 2.3 115 Cambodia 1.5

36 Malta 3.4 76 Azerbaijan 2.3 116 Swaziland 1.5

37 Hungary 3.4 77 Argentina 2.3 117 Malawi 1.5

38 Thailand 3.4 78 Senegal 2.3 118 Madagascar 1.4

39 Slovak Republic 3.2 79 Kenya 2.3 119 Haiti 1.3

40 Jordan 3.1 80 Rwanda 2.2 120 Burundi 1.1


Basic Enablers


1 Singapore 7.1 41 Poland 3.9 81 Moldova 2.7

2 Switzerland 6.7 42 Saudi Arabia 3.8 82 Serbia 2.7

3 Finland 6.6 43 Jordan 3.8 83 Vietnam 2.7

4 Netherlands 6.2 44 Ukraine 3.7 84 Gambia, The 2.7

5 Belgium 6.2 45 Mauritius 3.7 85 South Africa 2.6

6 Norway 6.1 46 Italy 3.7 86 Honduras 2.6

7 Hong Kong SAR 5.9 47 Albania 3.6 87 Mexico 2.6

8 New Zealand 5.9 48 Lebanon 3.6 88 Azerbaijan 2.6

9 United States 5.7 49 Sri Lanka 3.6 89 Venezuela, RB 2.6

10 Australia 5.6 50 Indonesia 3.6 90 Peru 2.6

11 Canada 5.6 51 Thailand 3.5 91 Kyrgyz Republic 2.5

12 Qatar 5.5 52 Slovak Republic 3.5 92 Morocco 2.5

13 Iceland 5.5 53 Philippines 3.5 93 Ghana 2.5

14 Sweden 5.5 54 Uruguay 3.5 94 Guatemala 2.4

15 United Kingdom 5.4 55 Trinidad and Tobago 3.4 95 Senegal 2.4

16 Denmark 5.4 56 China 3.4 96 Rwanda 2.4

17 Germany 5.3 57 Croatia 3.4 97 Botswana 2.4

18 Ireland 5.2 58 Romania 3.3 98 Brazil 2.4

19 Taiwan, China 5.1 59 Hungary 3.3 99 El Salvador 2.4

20 United Arab Emirates 5.0 60 Tajikistan 3.3 100 Bosnia and Herzegovina 2.4

21 Estonia 5.0 61 Kazakhstan 3.3 101 Bolivia 2.3

22 Austria 4.9 62 Greece 3.3 102 Namibia 2.3

23 Malaysia 4.9 63 Turkey 3.2 103 Cameroon 2.2

24 France 4.9 64 Ecuador 3.1 104 Nepal 2.1

25 Japan 4.8 65 Argentina 3.1 105 Swaziland 2.0

26 Luxembourg 4.7 66 Panama 3.1 106 Pakistan 2.0

27 Lithuania 4.6 67 Mongolia 3.0 107 Ethiopia 1.9

28 Slovenia 4.5 68 Armenia 3.0 108 Bangladesh 1.9

29 Korea, Rep. 4.4 69 Colombia 2.9 109 Cambodia 1.9

30 Portugal 4.4 70 Jamaica 2.9 110 Uganda 1.8

31 Israel 4.3 71 India 2.9 111 Paraguay 1.8

32 Bahrain 4.3 72 Zambia 2.9 112 Egypt, Arab Rep. 1.7

33 Czech Republic 4.3 73 Kuwait 2.9 113 Haiti 1.7

34 Malta 4.2 74 Tunisia 2.9 114 Madagascar 1.7

35 Latvia 4.1 75 Iran, Islamic Rep. 2.8 115 Gabon 1.7

36 Cyprus 4.1 76 Oman 2.8 116 Nigeria 1.6

37 Costa Rica 4.0 77 Kenya 2.8 117 Tanzania 1.6

38 Chile 4.0 78 Bulgaria 2.8 118 Malawi 1.5

39 Spain 3.9 79 Cote d'Ivoire 2.7 119 Mozambique 1.4

40 Russian Federation 3.9 80 Georgia 2.7 120 Burundi 1.2


Driving forces


1 Norway 6.9 41 Mauritius 2.3 81 South Africa 1.7

2 Luxembourg 6.9 42 Slovenia 2.2 82 Honduras 1.6

3 Qatar 6.6 43 Azerbaijan 2.2 83 Bangladesh 1.6

4 Switzerland 6.2 44 Uruguay 2.2 84 Philippines 1.6

5 Singapore 5.5 45 Kazakhstan 2.1 85 Gabon 1.6

6 United Arab Emirates 5.0 46 Chile 2.1 86 Uganda 1.6

7 Ireland 4.6 47 Latvia 2.1 87 India 1.6

8 Sweden 4.5 48 Czech Republic 2.1 88 Iran, Islamic Rep. 1.6

9 Denmark 4.4 49 Slovak Republic 2.1 89 Guatemala 1.6

10 United States 4.4 50 China 2.0 90 Ecuador 1.6

11 Australia 4.2 51 Sri Lanka 2.0 91 Ghana 1.5

12 Netherlands 4.2 52 Jordan 2.0 92 Tajikistan 1.5

13 New Zealand 4.1 53 Trinidad and Tobago 2.0 93 Moldova 1.5

14 Hong Kong SAR 4.0 54 Turkey 1.9 94 Peru 1.5

15 United Kingdom 4.0 55 Hungary 1.9 95 Nigeria 1.5

16 Finland 3.9 56 Kenya 1.9 96 El Salvador 1.5

17 Germany 3.8 57 Poland 1.9 97 Tunisia 1.5

18 Canada 3.8 58 Cote d'Ivoire 1.9 98 Mozambique 1.5

19 Iceland 3.7 59 Morocco 1.8 99 Ethiopia 1.5

20 Austria 3.7 60 Indonesia 1.8 100 Lebanon 1.5

21 Belgium 3.6 61 Armenia 1.8 101 Cameroon 1.5

22 Japan 3.5 62 Botswana 1.8 102 Cambodia 1.5

23 France 3.2 63 Thailand 1.8 103 Serbia 1.4

24 Israel 3.1 64 Georgia 1.8 104 Tanzania 1.4

25 Saudi Arabia 3.1 65 Mexico 1.8 105 Paraguay 1.4

26 Bahrain 3.1 66 Zambia 1.8 106 Pakistan 1.4

27 Taiwan, China 3.0 67 Russian Federation 1.8 107 Swaziland 1.4

28 Korea, Rep. 3.0 68 Bulgaria 1.8 108 Brazil 1.4

29 Malaysia 2.9 69 Gambia, The 1.8 109 Kyrgyz Republic 1.4

30 Malta 2.9 70 Jamaica 1.8 110 Malawi 1.4

31 Estonia 2.9 71 Vietnam 1.8 111 Egypt, Arab Rep. 1.4

32 Portugal 2.6 72 Greece 1.8 112 Ukraine 1.3

33 Kuwait 2.5 73 Namibia 1.8 113 Nepal 1.3

34 Cyprus 2.5 74 Costa Rica 1.8 114 Bolivia 1.3

35 Oman 2.4 75 Colombia 1.8 115 Madagascar 1.3

36 Rwanda 2.4 76 Croatia 1.7 116 Bosnia and Herzegovina 1.2

37 Spain 2.4 77 Mongolia 1.7 117 Burundi 1.2

38 Italy 2.3 78 Albania 1.7 118 Argentina 1.1

39 Panama 2.3 79 Senegal 1.7 119 Venezuela, RB 1.0

40 Lithuania 2.3 80 Romania 1.7 120 Haiti 0.9




1 Finland 6.7 41 Chile 3.5 81 Colombia 2.5

2 Switzerland 6.1 42 Italy 3.5 82 Brazil 2.5

3 Singapore 5.9 43 Costa Rica 3.4 83 Morocco 2.5

4 Norway 5.9 44 Hungary 3.4 84 Uruguay 2.5

5 Sweden 5.8 45 Bahrain 3.4 85 Botswana 2.4

6 United Kingdom 5.7 46 Russian Federation 3.3 86 Cote d'Ivoire 2.4

7 Netherlands 5.6 47 Croatia 3.3 87 Moldova 2.4

8 United States 5.6 48 Trinidad and Tobago 3.2 88 Ghana 2.4

9 Canada 5.5 49 Poland 3.2 89 Georgia 2.4

10 Iceland 5.5 50 Ukraine 3.2 90 Tajikistan 2.3

11 Luxembourg 5.4 51 Slovak Republic 3.2 91 India 2.3

12 Germany 5.3 52 Philippines 3.1 92 Argentina 2.3

13 Belgium 5.3 53 Panama 3.1 93 Madagascar 2.3

14 Israel 5.2 54 Sri Lanka 3.1 94 Gambia, The 2.3

15 Ireland 5.2 55 Kazakhstan 3.1 95 Honduras 2.3

16 New Zealand 5.1 56 Lebanon 3.1 96 Iran, Islamic Rep. 2.3

17 Denmark 5.1 57 Azerbaijan 3.0 97 Bangladesh 2.3

18 Australia 5.1 58 Indonesia 3.0 98 Peru 2.2

19 United Arab Emirates 4.9 59 South Africa 3.0 99 Ecuador 2.2

20 France 4.9 60 Romania 2.9 100 Vietnam 2.2

21 Japan 4.7 61 Thailand 2.9 101 Cameroon 2.1

22 Namibia 4.6 62 Mauritius 2.9 102 Albania 2.1

23 Austria 4.6 63 Kenya 2.8 103 Ethiopia 2.1

24 Qatar 4.5 64 Mongolia 2.8 104 Uganda 2.1

25 Hong Kong SAR 4.5 65 Jamaica 2.8 105 Nigeria 2.1

26 Malaysia 4.5 66 Turkey 2.8 106 El Salvador 2.0

27 Portugal 4.4 67 Rwanda 2.8 107 Cambodia 2.0

28 Estonia 4.3 68 Armenia 2.8 108 Bolivia 2.0

29 Lithuania 4.1 69 Bulgaria 2.8 109 Malawi 2.0

30 Cyprus 4.0 70 Mexico 2.7 110 Mozambique 2.0

31 Taiwan, China 4.0 71 China 2.7 111 Kyrgyz Republic 2.0

32 Slovenia 4.0 72 Oman 2.7 112 Venezuela, RB 1.9

33 Spain 3.9 73 Tunisia 2.7 113 Tanzania 1.9

34 Malta 3.8 74 Zambia 2.7 114 Nepal 1.9

35 Latvia 3.7 75 Egypt, Arab Rep. 2.6 115 Gabon 1.9

36 Czech Republic 3.6 76 Kuwait 2.6 116 Bosnia and Herzegovina 1.8

37 Greece 3.6 77 Senegal 2.5 117 Paraguay 1.8

38 Jordan 3.6 78 Serbia 2.5 118 Swaziland 1.7

39 Saudi Arabia 3.5 79 Guatemala 2.5 119 Burundi 1.6

40 Korea, Rep. 3.5 80 Pakistan 2.5 120 Haiti 1.5


Demand factors


1 Qatar 7.4 41 Jordan 5.3 81 Bulgaria 4.6

2 Japan 7.4 42 Panama 5.3 82 Poland 4.5

3 Hong Kong SAR 7.1 43 Cyprus 5.2 83 Gambia, The 4.5

4 Malaysia 7.1 44 Italy 5.2 84 Oman 4.5

5 Switzerland 7.0 45 Denmark 5.2 85 Mongolia 4.5

6 Luxembourg 6.9 46 Philippines 5.2 86 El Salvador 4.5

7 Singapore 6.6 47 Iran, Islamic Rep. 5.1 87 Ghana 4.4

8 Korea, Rep. 6.5 48 Guatemala 5.1 88 Czech Republic 4.4

9 Ireland 6.5 49 Lebanon 5.1 89 Nepal 4.4

10 United Kingdom 6.5 50 Portugal 5.1 90 Senegal 4.4

11 Finland 6.5 51 Peru 5.1 91 Morocco 4.4

12 United Arab Emirates 6.5 52 Namibia 5.1 92 Botswana 4.4

13 Norway 6.4 53 Turkey 5.0 93 Ecuador 4.4

14 United States 6.4 54 Kuwait 5.0 94 Latvia 4.3

15 Sweden 6.3 55 Kyrgyz Republic 4.9 95 Albania 4.3

16 Belgium 6.2 56 Argentina 4.9 96 Georgia 4.3

17 Netherlands 6.2 57 Ethiopia 4.9 97 Nigeria 4.3

18 Canada 6.2 58 Uruguay 4.9 98 Romania 4.3

19 Taiwan, China 6.2 59 Malta 4.9 99 Tunisia 4.3

20 New Zealand 6.1 60 Mexico 4.9 100 Kenya 4.2

21 China 6.0 61 Costa Rica 4.9 101 Zambia 4.2

22 Germany 5.9 62 Brazil 4.9 102 Swaziland 4.2

23 Thailand 5.8 63 Ukraine 4.8 103 Gabon 4.2

24 Iceland 5.8 64 Bangladesh 4.8 104 Tanzania 4.2

25 Azerbaijan 5.7 65 Vietnam 4.8 105 Moldova 4.2

26 India 5.7 66 Cambodia 4.8 106 Paraguay 4.1

27 Israel 5.7 67 Armenia 4.8 107 Slovak Republic 4.1

28 Chile 5.7 68 Greece 4.8 108 Cameroon 4.0

29 Bahrain 5.6 69 Jamaica 4.7 109 Mozambique 4.0

30 France 5.6 70 Trinidad and Tobago 4.7 110 Egypt, Arab Rep. 3.9

31 Kazakhstan 5.6 71 Spain 4.7 111 Venezuela, RB 3.9

32 Indonesia 5.5 72 Honduras 4.7 112 Croatia 3.7

33 Sri Lanka 5.5 73 Pakistan 4.7 113 Hungary 3.6

34 South Africa 5.5 74 Rwanda 4.7 114 Uganda 3.6

35 Austria 5.4 75 Bolivia 4.7 115 Malawi 3.5

36 Saudi Arabia 5.4 76 Slovenia 4.7 116 Haiti 3.4

37 Australia 5.4 77 Cote d'Ivoire 4.7 117 Serbia 3.3

38 Russian Federation 5.4 78 Lithuania 4.6 118 Madagascar 3.2

39 Mauritius 5.3 79 Estonia 4.6 119 Burundi 3.1

40 Tajikistan 5.3 80 Colombia 4.6 120 Bosnia and Herzegovina 2.9




1 Singapore 8.5 41 Australia 3.1 81 Vietnam 1.6

2 Taiwan, China 7.6 42 Malta 3.1 82 Egypt, Arab Rep. 1.6

3 Ireland 7.1 43 Estonia 3.0 83 Costa Rica 1.6

4 Germany 6.8 44 Iran, Islamic Rep. 2.9 84 Bangladesh 1.5

5 Japan 6.7 45 India 2.8 85 Uruguay 1.5

6 Korea, Rep. 6.7 46 South Africa 2.8 86 Cyprus 1.5

7 Switzerland 6.1 47 Turkey 2.7 87 Cote d'Ivoire 1.5

8 Hungary 5.7 48 Bulgaria 2.6 88 Azerbaijan 1.5

9 United Kingdom 5.6 49 Jordan 2.6 89 Mauritius 1.4

10 Norway 5.6 50 Iceland 2.5 90 Rwanda 1.4

11 Netherlands 5.5 51 New Zealand 2.5 91 Mongolia 1.4

12 Israel 5.5 52 Morocco 2.5 92 Kenya 1.3

13 United States 5.5 53 Russian Federation 2.4 93 Sri Lanka 1.3

14 Finland 5.4 54 Bahrain 2.3 94 Honduras 1.3

15 Denmark 5.3 55 Latvia 2.3 95 Kazakhstan 1.3

16 France 5.3 56 Nigeria 2.2 96 Moldova 1.3

17 Czech Republic 5.0 57 Chile 2.2 97 Peru 1.3

18 Slovenia 4.6 58 Bosnia and Herzegovina 2.2 98 Ecuador 1.2

19 Slovak Republic 4.4 59 Venezuela, RB 2.2 99 Namibia 1.2

20 Thailand 4.4 60 Argentina 2.2 100 Albania 1.2

21 Sweden 4.4 61 Luxembourg 2.1 101 Bolivia 1.2

22 Belgium 4.2 62 Greece 2.0 102 Ghana 1.2

23 Austria 4.1 63 United Arab Emirates 2.0 103 Uganda 1.2

24 Malaysia 3.9 64 Croatia 1.9 104 Paraguay 1.1

25 Spain 3.9 65 Guatemala 1.9 105 Cameroon 1.1

26 Saudi Arabia 3.8 66 Oman 1.9 106 Mozambique 1.1

27 Hong Kong SAR 3.7 67 Jamaica 1.9 107 Ethiopia 1.0

28 Romania 3.4 68 Kuwait 1.8 108 Armenia 1.0

29 Poland 3.4 69 Colombia 1.8 109 Malawi 1.0

30 Brazil 3.4 70 Tunisia 1.8 110 Tanzania 1.0

31 Mexico 3.4 71 Zambia 1.8 111 Nepal 1.0

32 Italy 3.3 72 Senegal 1.8 112 Kyrgyz Republic 1.0

33 Philippines 3.3 73 Serbia 1.8 113 Gambia, The 1.0

34 Trinidad and Tobago 3.3 74 Lebanon 1.7 114 Haiti 1.0

35 Qatar 3.3 75 Georgia 1.7 115 Gabon 0.9

36 Indonesia 3.2 76 El Salvador 1.7 116 Madagascar 0.8

37 Canada 3.2 77 Botswana 1.7 117 Cambodia 0.8

38 Portugal 3.2 78 Pakistan 1.7 118 Tajikistan 0.8

39 Lithuania 3.2 79 Ukraine 1.7 119 Swaziland 0.7

40 China 3.2 80 Panama 1.7 120 Burundi 0.6




1 Japan 7.9 41 Bahrain 3.1 81 Gambia, The 2.3

2 Switzerland 7.8 42 Lithuania 3.0 82 Russian Federation 2.3

3 Germany 7.2 43 China 2.9 83 Cote d'Ivoire 2.2

4 Finland 6.9 44 Indonesia 2.9 84 Romania 2.2

5 Denmark 6.9 45 India 2.8 85 Pakistan 2.2

6 Sweden 6.8 46 South Africa 2.8 86 Mongolia 2.2

7 Austria 6.8 47 Estonia 2.8 87 Ecuador 2.2

8 Netherlands 6.7 48 Chile 2.7 88 Iran, Islamic Rep. 2.1

9 Belgium 6.6 49 Kenya 2.7 89 Georgia 2.1

10 United Kingdom 6.6 50 Greece 2.7 90 Ethiopia 2.1

11 United States 6.3 51 Mexico 2.7 91 Argentina 2.1

12 Israel 6.2 52 Lebanon 2.7 92 Bulgaria 2.1

13 Norway 6.2 53 Guatemala 2.7 93 Botswana 2.0

14 Luxembourg 6.0 54 Latvia 2.7 94 Morocco 2.0

15 Ireland 5.9 55 Jamaica 2.6 95 Egypt, Arab Rep. 2.0

16 Singapore 5.8 56 Philippines 2.6 96 Peru 2.0

17 Italy 5.7 57 Senegal 2.6 97 Vietnam 2.0

18 France 5.6 58 Albania 2.6 98 Cameroon 1.9

19 Canada 5.2 59 Uruguay 2.6 99 Tunisia 1.9

20 Qatar 5.2 60 Namibia 2.6 100 Gabon 1.9

21 Hong Kong SAR 4.9 61 Armenia 2.5 101 Kyrgyz Republic 1.9

22 Taiwan, China 4.9 62 Oman 2.5 102 Bolivia 1.9

23 Korea, Rep. 4.9 63 Honduras 2.5 103 Uganda 1.8

24 Malaysia 4.7 64 Rwanda 2.5 104 Zambia 1.8

25 United Arab Emirates 4.5 65 Turkey 2.5 105 Nepal 1.8

26 Iceland 4.3 66 Trinidad and Tobago 2.5 106 Tanzania 1.8

27 Australia 4.0 67 Kuwait 2.5 107 Nigeria 1.8

28 New Zealand 3.8 68 El Salvador 2.5 108 Swaziland 1.7

29 Costa Rica 3.7 69 Poland 2.5 109 Mozambique 1.7

30 Czech Republic 3.7 70 Sri Lanka 2.4 110 Moldova 1.7

31 Spain 3.6 71 Tajikistan 2.4 111 Bosnia and Herzegovina 1.7

32 Saudi Arabia 3.5 72 Colombia 2.4 112 Cambodia 1.7

33 Malta 3.4 73 Slovak Republic 2.4 113 Paraguay 1.6

34 Slovenia 3.3 74 Ghana 2.4 114 Bangladesh 1.6

35 Portugal 3.3 75 Kazakhstan 2.4 115 Malawi 1.6

36 Cyprus 3.3 76 Azerbaijan 2.4 116 Venezuela, RB 1.5

37 Mauritius 3.2 77 Croatia 2.4 117 Burundi 1.4

38 Thailand 3.2 78 Hungary 2.4 118 Serbia 1.4

39 Panama 3.2 79 Brazil 2.3 119 Madagascar 1.2

40 Jordan 3.2 80 Ukraine 2.3 120 Haiti 1.2


Innovation aptitude


1 Switzerland 6.8 41 Cameroon 3.4 81 Slovak Republic 2.7

2 Israel 6.5 42 Cote d'Ivoire 3.4 82 Turkey 2.7

3 United States 6.5 43 Guatemala 3.4 83 Uganda 2.7

4 Sweden 6.0 44 Jordan 3.4 84 Vietnam 2.7

5 Finland 5.8 45 Kenya 3.4 85 Colombia 2.6

6 Germany 5.8 46 Lebanon 3.4 86 Cyprus 2.6

7 Malaysia 5.6 47 China 3.2 87 Pakistan 2.6

8 Austria 5.4 48 India 3.2 88 Albania 2.4

9 Luxembourg 5.4 49 Jamaica 3.2 89 Botswana 2.4

10 United Kingdom 5.4 50 Panama 3.2 90 Iran, Islamic Rep. 2.4

11 Belgium 5.1 51 Ukraine 3.2 91 Kuwait 2.4

12 Denmark 5.1 52 Azerbaijan 3.1 92 Kyrgyz Republic 2.4

13 Japan 5.1 53 Ghana 3.1 93 Peru 2.4

14 New Zealand 5.1 54 Mauritius 3.1 94 Uruguay 2.4

15 Qatar 5.1 55 Saudi Arabia 3.1 95 Cambodia 2.3

16 Ireland 4.9 56 Spain 3.1 96 Ethiopia 2.3

17 Netherlands 4.9 57 Tajikistan 3.1 97 Greece 2.3

18 Norway 4.9 58 Thailand 3.1 98 Morocco 2.3

19 France 4.7 59 El Salvador 2.9 99 Mozambique 2.3

20 Singapore 4.7 60 Gambia, The 2.9 100 Tanzania 2.3

21 Canada 4.4 61 Kazakhstan 2.9 101 Trinidad and Tobago 2.3

22 Taiwan, China 4.4 62 Latvia 2.9 102 Tunisia 2.3

23 Australia 4.2 63 Mexico 2.9 103 Bangladesh 2.2

24 Czech Republic 4.2 64 Mongolia 2.9 104 Gabon 2.2

25 Korea, Rep. 4.2 65 Romania 2.9 105 Georgia 2.2

26 Estonia 4.0 66 Rwanda 2.9 106 Malawi 2.2

27 Hong Kong SAR 4.0 67 Zambia 2.9 107 Moldova 2.2

28 Indonesia 4.0 68 Argentina 2.8 108 Oman 2.2

29 United Arab Emirates 4.0 69 Bahrain 2.8 109 Paraguay 2.2

30 Lithuania 3.8 70 Ecuador 2.8 110 Swaziland 2.2

31 Philippines 3.8 71 Malta 2.8 111 Bolivia 2.1

32 South Africa 3.8 72 Namibia 2.8 112 Croatia 2.1

33 Iceland 3.7 73 Poland 2.8 113 Nepal 2.1

34 Italy 3.7 74 Armenia 2.7 114 Haiti 2.0

35 Portugal 3.7 75 Brazil 2.7 115 Egypt, Arab Rep. 1.9

36 Sri Lanka 3.7 76 Bulgaria 2.7 116 Hungary 1.9

37 Costa Rica 3.5 77 Chile 2.7 117 Serbia 1.9

38 Honduras 3.5 78 Madagascar 2.7 118 Bosnia and Herzegovina 1.8

39 Senegal 3.5 79 Nigeria 2.7 119 Venezuela, RB 1.7

40 Slovenia 3.5 80 Russian Federation 2.7 120 Burundi 1.6


EU

17%

24.6%

11.2%

16.4% 14.7%

14.7% 12.5%

2000 2015

EU Average

14.7%

9.8% 22.8% 23%

13.3%

17.8%

15.7%

17.2%

13.5%

19.7% 18.2%

19.5%

15.5%

15.3%

11.7%

36.9%

26%

23%

17%

23.7% 21.1%

27.6%

9.5% 10.6%

12.5% 15.3%

C

22.4%

Exhibit 8 – Value added, manufacturing % of GDP – 2000 & 2015

20.5% 18.9%

Note: Only a limited number of EU countries are shown in graph, however, the EU average is calculated based on all 27 EU countries.


AustriaBelgium

Cyprus

Czech Republic

Denmark

Estonia

Finland

France

Germany

Greece

Hungary

Ireland

Italy

Latvia

Lithuania

Luxembourg

Malta

Netherlands

Poland

Portugal

Romania

Slovak Republic

SloveniaSpain

SwedenUnited Kingdom

0

1

2

3

4

5

6

7

8

9

10

0 5 10 15 20 25 30

As depicted on the previous side, the EU landscape is dominated by decline. 22 out of the 27 EU countries

have seen their manufacturing sectors, relative to their total economy, shrink in the period from 2000 to

2015. Only Ireland and a few countries in Eastern Europe - Poland, Hungary, Czech Republic, Romania

and Lithuania - experienced an increase in their manufacturing sector relative to their total economy.

However, most of the countries' manufacturing sectors have not shrank nominally speaking, only

relative to their total economy. Nevertheless, it is clear that manufacturing is playing an increasingly

smaller role in the EU economy.

Growers: Manufacturer is currently a moderately important driver of Growers' economies. The Growers

is well-positioned for Industry 4.0, and thus their manufacturing sectors are likely to grow in the future.

Leaders: Manufacturing is an important driver of Leaders' economies. With high levels of Industry 4.0

readiness, the Leaders will be able to sustain their position, and even grow.

Laggards: Manufacturer is moderately important for the Laggards, however, they lack in terms of

readiness. Therefore, the outlook of the Laggards' manufacturing sectors is rather negative.

Unprepared: Manufacturing is very important to the Unprepared, however, they are unprepared for

Industry 4.0, and they will most likely not be able to sustain their status quo.

Exhibit 9 – EU: Readiness & value added, manufacturing % of GDP

Read

iness

Value added, manufacturing (% of GDP)

Leaders

Laggards

Growers

Unprepared


Albania

Argentina

Armenia

Australia

Austria

Azerbaijan

Bahrain

Bangladesh

Belgium

Bolivia


BotswanaBrazil

Bulgaria

Burundi

Cambodia

Cameroon

Canada

Chile

China

Colombia

Costa Rica

Cote d'Ivoire

CroatiaCyprus

Czech Republic

Denmark

EcuadorEgypt, Arab Rep.

El Salvador

Estonia

Ethiopia

Finland

France

Gabon

Gambia, The

Georgia

Germany

Ghana

Greece

Guatemala

Haiti

Honduras


Hungary

Iceland

India

Indonesia

Iran

Israel

Italy

Jamaica

Japan

Jordan

Kazakhstan

Kenya

Korea, Rep.

Kuwait

Kyrgyz Republic

Latvia

Lebanon

LithuaniaLuxembourg

Madagascar

Malawi

Malaysia

Malta

MauritiusMexico

Moldova

Mongolia

Morocco

Mozambique

Namibia

Nepal

Netherlands

New Zealand

Nigeria

Norway

Oman

Pakistan

Panama

Paraguay

Peru

Philippines

Poland

Portugal

Qatar

Romania

Russian Federation

Rwanda

Saudi Arabia

Senegal

Serbia

Singapore

Slovak Republic

Slovenia

South Africa

Spain

Sri Lanka

Sweden

Switzerland

Taiwan, China

Tajikistan

Tanzania

ThailandTrinidad and Tobago

Tunisia

Turkey

Uganda

UkraineUnited Arab Emirates

United Kingdom

United States

Uruguay

Venezuela, RB

Vietnam

Zambia

0

1

2

3

4

5

6

7

8

9

10

0 5 10 15 20 25 30

Global

Future Industry 4.0 Winners

Exhibit 10 – Global: Readiness & value added, manufacturing % of GDP

Read

iness


21

Global Industry 4.0 Readiness Report 2016-2017

Future outlook

Group Outlook

1

Manufacturing currently constitutes a very small part of their economies. However, they have high

levels of Industry 4.0 readiness. Therefore, they have the opportunity to grow their manufacturing

sectors, and thus boost their overall economic growth.

2

Manufacturing is currently moderately important, but by no means the driver of their economies.

These countries exhibit high levels of Industry 4.0 readiness, thus their manufacturing sectors have

a rather prosperous outlook. Manufacturing may develop to become an importer driver of their

economies in the future.

3

Manufacturing is an important driver of their economies. Fortunately, for these countries, they are

all well-positioned for Industry 4.0, thus they will be able to not only sustain their status quo, but

even grow their manufacturing sectors.

4

These countries rely heavily on manufacturing, as it is one of the most important drivers of their

economies. These countries exhibit a favourable environment for adopting Industry 4.0, and

therefore manufacturing is likely to continue to play a vital part of their economies or even a more

vital part in the future.

5

These countries are firmly positioned in the middle, both in terms of readiness and size of their

manufacturing sectors relative to their total economies. The outlook of their manufacturing sectors

is rather uncertain. They are not the positioned in the top in terms of Industry 4.0 readiness, but

they are not far away either, and thus they still have the opportunity to catch up.

6

Manufacturing is a very important driver for these economies, however, their current levels of

Industry 4.0 readiness are not quite fully geared to support their manufacturing sectors.

Nevertheless, they still exhibit medium-high levels of readiness, and thus they have a fairly good

outlook, but not prosperous.

7

Manufacturing constitutes a very small part of their economies, and they are by no means

positioned to accommodate Industry 4.0, thus their manufacturing sectors have a vanishing

outlook.

8 Manufacturing is moderately important for these economies. However, these countries currently

exhibit low levels of readiness, thus their manufacturing sectors have a negative outlook.

9

Manufacturing is an important driver of their economies. However, unfortunately for these

countries, they are all not well-positioned for Industry 4.0, quite the contrary, thus they will most

likely not be able to only sustain their status quo.

1

2

1

2

3

4

5 6

7

Exhibit 11 – Global Outlook

8 9

Read

iness


22


Strategic Implications

Group Readiness Manufacturing % of GDP

Recommended Strategy Current Future1 Δ2

Foster manufacturing & strengthen

position

Foster manufacturing & strengthen

position

Further strengthen position

Further strengthen position

Catch up to protect

Catch up to protect

Foster manufacturing & Complete

turnaround

Complete turnaround

Complete turnaround

1

2

3

4

5

6

7

8

9

Exhibit 12 – Strategic Recommendations

2 ~10 years 1 Change

23


Future shifting global flows – the new era of reshoring? In recent decades, offshoring and outsourcing trends have grown substantially, particularly to locations

such as South America, Eastern Europe and most predominantly to Asia. However, a new industrial

revolution is beginning to gain foothold. While economic arbitrage, mainly exploiting access to low-cost

labour, have been a primary motive for this trend of outsourcing and offshoring, low-cost labour

countries is typically also less developed. This new industrial revolution requires something completely

different than low-cost labour. Rather it requires highly educated labour. Those countries that have

outsourced and offshored in the past decades are exactly those countries with the necessarily

sophisticated workforce to accommodate the fourth industrial revolution. Developed countries with

sufficiently high levels of Industry 4.0 now have the opportunity to bring back activities which they have

been outsourcing and offshoring in the past decades. Not only do they have the opportunity; with

minimal to no cost savings to gain from outsourcing abroad or offshoring, miscellaneous risks,

complexity from cultural differences as well as logistics cost and longer delivery times, bringing activities

back to the home market will be enormously attractive. Thus, it is very likely that this fourth industrial

revolution will, to some extent, reverse the global flows that have taken place in the past decades; an

era of reshoring. Specifically, North America, Western Europe, and a few small Asian countries will have

the opportunity to bring back manufacturing activities. As these areas are the best-positioned areas in

terms of industry 4.0, they are also more prone to grow their manufacturing sectors

Exhibit 13 – Global Industry 4.0 Readiness & new flows

24


Industry 4.0 will impact the global manufacturing landscape and render reshoring from low-cost

countries more attractive for two reasons:

Change in capital and labour ratio:

Industry 4.0 is expected to change the global manufacturing landscape, as production becomes

more capital intensive and the advantage of low-cost labour countries therefore erodes.

Increased competitiveness:

Industry 4.0 allows manufacturers to increase their competitiveness both on price but also on

other factors such as quality, delivery time, flexibility and customization.

For advanced countries, above aspects represent an enormous opportunity in terms of reshoring

production activities as well as growing their manufacturing sectors. However, for low-cost labour

countries, above aspects represent a tremendously alarming trend, as these countries' competitive

advantage typically is rooted in low labour cost levels. This source of competitive advantage is now

eroding. Even more alarmingly for these countries, Industry 4.0 readiness levels highly correlate with

wage levels, therefore these low labour cost countries currently also have low Industry 4.0 readiness

levels, and thus a bad outlook with respect to transitioning towards Industry 4.0. These countries must

develop their positions in order to sustain their manufacturing sectors.

Exhibit 14 – Global Industry 4.0 Readiness & new flows

R² = 0.73

0

1

2

3

4

5

6

7

8

9

10

0 10000 20000 30000 40000 50000 60000 70000 80000 90000 100000

Annual wages (US$)

Read

iness

Sco

re

25


R² = 0.6764

0

2

4

6

8

10

0 20,000 40,000 60,000 80,000 100,000 120,000

Readiness & economic development


R² = 0.7113

0

2

4

6

8

10

0 20,000 40,000 60,000 80,000 100,000 120,000

Overall Readiness Index

Basis Enablers

GDP per capita (current US$)

Read

iness

Sco

re


Read

iness

Sco

re

0

2

4

6

8

10

0 20,000 40,000 60,000 80,000 100,000 120,000

0

2

4

6

8

10

0 20,000 40,000 60,000 80,000 100,000 120,000

0

2

4

6

8

10

0 20,000 40,000 60,000 80,000 100,000 120,000

R² = 0.4091

0

2

4

6

8

10

0 20,000 40,000 60,000 80,000 100,000 120,000

R² = 0.7142

0

2

4

6

8

10

0 20,000 40,000 60,000 80,000 100,000 120,000

R² = 0.5787

0

2

4

6

8

10

0 20,000 40,000 60,000 80,000 100,000 120,000

Driving Forces


Read

iness

Sco

re


Read

iness

Sco

re

Demand factors



Read

iness

Sco

re

Read

iness

Sco

re




Innovation attitude

Read

iness

Sco

re


Read

iness

Sco

re


It is apparent that overall Industry 4.0 readiness as well as the seven underlying pillars highly correlate

with economic development. However, the pillar "Technological sophistication" does not correlate as

closely as the other pillars. This further substantiates that Industry 4.0 is the era of reshoring, as advanced

countries clearly are the front-runners when it comes to Industry 4.0 readiness.

Growth

While there is no clear correlation between forecasted GDP per capita growth, there is a segment of 53

countries - equivalent to 44% of the 120 analysed countries - which currently possess low levels of

Industry readiness 4.0 (below 4), but high levels of growth (above 6%), whereof 8 have ultra-high levels

of growth (above 10%). These countries may develop so rapidly that they may become future potential

Industry 4.0 challengers, despite their current weak positions.

In order to sustain their current leading positions, the front-runners must not fall into the trap of

believing that the less advanced countries are not of competition when it comes to Industry 4.0. While

that might be true at the moment, this will definitely change in the future due to the high growth levels

of some of these less advanced countries.

Exhibit 14 – Readiness & Future Economic Growth

CAGR – GDP per capita, 2016-2021 (Forecast)

Read

iness

Sco

re

Note: GDP per capita forecast is based on data from IMF

Future potential Industry 4.0 challengers

0

1

2

3

4

5

6

7

8

9

10

0% 2% 4% 6% 8% 10% 12% 14%

27


Outlook - Global Industry 4.0 Readiness 2021

Rank ∆1 Country Score Rank ∆1 Country Score Rank ∆1 Country Score

1 0 Singapore 7.2 41 1 Bahrain 3.3 81 -5 Azerbaijan 2.2

2 5 Ireland 6.9 42 1 Poland 3.3 82 0 Mongolia 2.2

3 -1 Switzerland 6.9 43 4 Latvia 3.3 83 -3 Rwanda 2.2

4 2 Japan 6.9 44 -3 Indonesia 3.2 84 -3 Zambia 2.2

5 -2 Finland 6.7 45 -5 Jordan 3.2 85 -1 Côte d'Ivoire 2.2

6 -2 Germany 6.6 46 -2 Philippines 3.2 86 -3 Tunisia 2.2

7 2 United States 6.4 47 -1 Trinidad and Tob. 3.2 87 0 Armenia 2.2

8 0 Netherlands 6.4 48 1 Costa Rica 3.1 88 1 El Salvador 2.2

9 2 Denmark 6.2 49 1 Cyprus 3.1 89 2 Vietnam 2.1

10 -5 Norway 6.1 50 1 Romania 3.1 90 -2 Honduras 2.1

11 1 Sweden 5.8 51 -3 Chile 3.0 91 2 Pakistan 2.0

12 -2 United Kingdom 5.7 52 2 Russia 3.0 92 -2 Botswana 2.0

13 0 Belgium 5.7 53 4 Greece 2.9 93 7 Serbia 2.0

14 1 Israel 5.6 54 -2 Mexico 2.9 94 0 Ghana 2.0

15 -1 Taiwan 5.5 55 3 Panama 2.9 95 3 Bosnia and Herz. 2.0

16 0 France 5.4 56 -1 Turkey 2.8 96 -4 Ecuador 2.0

17 0 Austria 5.3 57 2 Mauritius 2.8 97 0 Peru 2.0

18 0 Korea 5.3 58 -5 South Africa 2.8 98 -3 Tajikistan 2.0

19 0 Qatar 5.2 59 -3 India 2.7 99 3 Egypt 2.0

20 1 Hong Kong SAR 5.1 60 0 Brazil 2.7 100 3 Moldova 1.9

21 4 Iceland 5.1 61 0 Lebanon 2.7 101 -5 Nigeria 1.9

22 0 Malaysia 4.9 62 0 Croatia 2.7 102 -1 The Gambia 1.9

23 -3 Canada 4.9 63 0 Bulgaria 2.6 103 1 Bangladesh 1.8

24 -1 Luxembourg 4.9 64 5 Kuwait 2.6 104 2 Bolivia 1.8

25 -1 Australia 4.7 65 -1 Iran 2.6 105 -6 Venezuela 1.8

26 0 New Zealand 4.6 66 6 Uruguay 2.6 106 -1 Cameroon 1.8

27 1 Slovenia 4.2 67 -2 Ukraine 2.5 107 0 Ethiopia 1.7

28 1 United Arab Em. 4.2 68 -2 Jamaica 2.5 108 0 Kyrgyz Republic 1.7

29 -2 Czech Republic 4.1 69 -2 Sri Lanka 2.5 109 0 Uganda 1.7

30 1 Spain 4.0 70 7 Argentina 2.4 110 2 Gabon 1.7

31 -1 Italy 4.0 71 -3 Oman 2.4 111 -1 Nepal 1.6

32 4 Malta 4.0 72 3 Colombia 2.4 112 -1 Paraguay 1.6

33 2 Lithuania 4.0 73 -2 Guatemala 2.4 113 0 Mozambique 1.5

34 0 Estonia 3.9 74 0 Morocco 2.4 114 0 Tanzania 1.5

35 -3 Portugal 3.9 75 -2 Namibia 2.4 115 0 Cambodia 1.5

36 -3 Saudi Arabia 3.8 76 -6 Kazakhstan 2.4 116 1 Malawi 1.5

37 2 Slovak Republic 3.6 77 2 Kenya 2.3 117 -1 Swaziland 1.5

38 -1 Hungary 3.5 78 0 Senegal 2.3 118 0 Madagascar 1.4

39 -1 Thailand 3.5 79 7 Georgia 2.3 119 0 Haiti 1.3

40 5 China 3.3 80 5 Albania 2.2 120 0 Burundi 1.1

1 Difference from the 2016 Readiness Index

Notes: See Appendix 2 for methodology


Basic enablers

- Electricity infrastructure 4.0

- Educational maturity 3.8

- Educational supply 5.4

- Proficiency of financial market 1.4

- Corporate training and education 3.4

Driving forces

- Wage level 0.1

- Government vision for ICT usage 2.8

- Competition 3.5


- Knowledge-intensive employment 0.9

- Educational excellence of math and science programmes 3.4

- Market access to newest technologies 2.9

- Excellence of scientific research institutions 1.2

- Fostering of talent 2.4

- Access to scientists and engineers 2.0

- Readiness to devolve decision-making and responsibilities 2.6

Demand factors

- Sophistication of demand 1.8


- Usage of general technology 3.2

- Usage of Information & Communication specific technology 1.4

- Level of medium and high-tech manufacturing activities. 0.4


- Sophistication of competitive advantage 2.4

- Breadth of value chain operations 1.6

- Complexity of production processes 2.9

Innovation aptitude

- Innovative capacity 2.4

Albania

0 2 4 6 8 10

5.7

Value added, Manufacturing. (% of GDP)

Category Score

0

2

4

6

8

10

Basic enablers

Driving forces

Industry 4.0 specific

enablers

Demand factorsTechnological

sophistication


Innovation aptitude

Albania Global average

Score: 2.1

Rank: 85

Country Profiles

29


Basic enablers






Driving forces

- Wage level 0.5


- Competition 1.7









Demand factors










Innovation aptitude


0 2 4 6 8 10

Argentina

17.2

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Argentina Global average


Category Score

Score: 2.3

Rank: 77

30


Basic enablers






Driving forces

- Wage level 0.1


- Competition 4.0









Demand factors










Innovation aptitude


0 2 4 6 8 10

10.4

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Armenia Global average

Armenia


Category Score

Score: 2.1

Rank: 87

31


Basic enablers






Driving forces

- Wage level 5.1


- Competition 4.4









Demand factors










Innovation aptitude


0 2 4 6 8 10

6.8

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Australia Global average

Australia


Category Score

Score: 4.2

Rank: 24

32


Basic enablers






Driving forces

- Wage level 3.1


- Competition 4.4









Demand factors










Innovation aptitude


0 2 4 6 8 10

18.9

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Austria Global average

Austria


Category Score

Score: 4.9

Rank: 17

33


Basic enablers






Driving forces

- Wage level 0.2


- Competition 3.4









Demand factors










Innovation aptitude


0 2 4 6 8 10

5.8

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Azerbaijan Global average

Azerbaijan


Category Score

Score: 2.3

Rank: 76

34


Basic enablers






Driving forces

- Wage level 0.8


- Competition 5.2









Demand factors










Innovation aptitude


0 2 4 6 8 10

17.3

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Bahrain Global average

Bahrain


Category Score

Score: 3.1

Rank: 42

35


Basic enablers






Driving forces

- Wage level 0.0


- Competition 3.3









Demand factors










Innovation aptitude


0 2 4 6 8 10

17.6

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Bangladesh Global average

Bangladesh


Category Score

Score: 1.8

Rank: 104

36


Basic enablers






Driving forces

- Wage level 2.8


- Competition 5.0









Demand factors










Innovation aptitude


0 2 4 6 8 10

14.3

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Belgium Global average

Belgium


Category Score

Score: 5.2

Rank: 13

37


Basic enablers






Driving forces

- Wage level 0.1


- Competition 2.4









Demand factors










Innovation aptitude


0 2 4 6 8 10

13.2

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Bolivia Global average

Bolivia


Category Score

Score: 1.7

Rank: 106

38


Basic enablers






Driving forces

- Wage level 0.2


- Competition 3.0









Demand factors










Innovation aptitude


0 2 4 6 8 10

14.1

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude




Category Score

Score: 1.9

Rank: 98

39


Basic enablers






Driving forces

- Wage level 0.2


- Competition 3.7









Demand factors










Innovation aptitude


0 2 4 6 8 10

6.3

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Botswana Global average

Botswana


Category Score

Score: 2.1

Rank: 90

40


Basic enablers






Driving forces

- Wage level 0.3


- Competition 2.5









Demand factors










Innovation aptitude


0 2 4 6 8 10

11.4

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Brazil Global average

Brazil


Category Score

Score: 2.6

Rank: 60

41


Basic enablers






Driving forces

- Wage level 0.3


- Competition 3.8









Demand factors










Innovation aptitude


0 2 4 6 8 10

16.8

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Bulgaria Global average

Bulgaria


Category Score

Score: 2.5

Rank: 63

42


Basic enablers






Driving forces

- Wage level 0.0


- Competition 2.8









Demand factors










Innovation aptitude


0 2 4 6 8 10

9.6

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Burundi Global average

Burundi


Category Score

Score: 1.1

Rank: 120

43


Basic enablers






Driving forces

- Wage level 0.0


- Competition 3.3









Demand factors










Innovation aptitude


0 2 4 6 8 10

17.0

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Cambodia Global average

Cambodia


Category Score

Score: 1.5

Rank: 115

44


Basic enablers






Driving forces

- Wage level 0.0


- Competition 3.2









Demand factors










Innovation aptitude


0 2 4 6 8 10

14.0

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Cameroon Global average

Cameroon


Category Score

Score: 1.8

Rank: 105

45


Basic enablers






Driving forces

- Wage level 3.2


- Competition 5.0









Demand factors










Innovation aptitude


0 2 4 6 8 10

11.1

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Canada Global average

Canada


Category Score

Score: 4.5

Rank: 20

46


Basic enablers






Driving forces

- Wage level 0.5


- Competition 4.2









Demand factors










Innovation aptitude


0 2 4 6 8 10

11.9

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Chile Global average

Chile


Category Score

Score: 2.9

Rank: 48

47


Basic enablers






Driving forces

- Wage level 0.3


- Competition 3.5









Demand factors










Innovation aptitude


0 2 4 6 8 10

29.7

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

China Global average

China


Category Score

Score: 3.0

Rank: 45

48


Basic enablers






Driving forces

- Wage level 0.2


- Competition 2.9









Demand factors










Innovation aptitude


0 2 4 6 8 10

12.2

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Colombia Global average

Colombia


Category Score

Score: 2.3

Rank: 75

49


Basic enablers






Driving forces

- Wage level 0.4


- Competition 3.4









Demand factors










Innovation aptitude


0 2 4 6 8 10

13.0

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Costa Rica Global average

Costa Rica


Category Score

Score: 2.9

Rank: 49

50


Basic enablers






Driving forces

- Wage level 0.0


- Competition 3.6









Demand factors










Innovation aptitude


0 2 4 6 8 10

12.5

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Cote d'Ivoire Global average

Cote d’Ivoire


Category Score

Score: 2.1

Rank: 84

51


Basic enablers






Driving forces

- Wage level 0.5


- Competition 3.3









Demand factors










Innovation aptitude


14.7

0 2 4 6 8 10

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Croatia Global average

0 2 4 6 8 10

Croatia


Category Score

Score: 2.5

Rank: 62

52


Basic enablers






Driving forces

- Wage level 1.2


- Competition 4.6









Demand factors










Innovation aptitude


0 2 4 6 8 10

4.8

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Cyprus Global average

Cyprus


Category Score

Score: 2.8

Rank: 50

53


Basic enablers






Driving forces

- Wage level 0.7


- Competition 4.5









Demand factors










Innovation aptitude


0 2 4 6 8 10

27.0

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Czech Republic Global average

Czech Republic


Category Score

Score: 4.0

Rank: 27

54


Basic enablers






Driving forces

- Wage level 4.8


- Competition 4.9









Demand factors










Innovation aptitude


0 2 4 6 8 10

14.7

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Denmark Global average

Denmark


Category Score

Score: 5.5

Rank: 11

55


Basic enablers






Driving forces

- Wage level 0.2


- Competition 2.6









Demand factors










Innovation aptitude


0 2 4 6 8 10

15.7

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Ecuador Global average

Ecuador


Category Score

Score: 2.0

Rank: 92

56


Basic enablers






Driving forces

- Wage level 0.1


- Competition 3.0









Demand factors










Innovation aptitude


0 2 4 6 8 10

16.6

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Egypt, Arab Rep. Global average

Egypt, Arab Rep.


Category Score

Score: 1.9

Rank: 102

57


Basic enablers






Driving forces

- Wage level 0.1


- Competition 3.3









Demand factors










Innovation aptitude


0 2 4 6 8 10

20.9

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

El Salvador Global average

El Salvador


Category Score

Score: 2.1

Rank: 89

58


Basic enablers






Driving forces

- Wage level 0.7


- Competition 5.1









Demand factors










Innovation aptitude


0 2 4 6 8 10

15.8

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Estonia Global average

Estonia


Category Score

Score: 3.5

Rank: 34

59


Basic enablers






Driving forces

- Wage level 0.0


- Competition 3.4









Demand factors










Innovation aptitude


0 2 4 6 8 10

4.1

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Ethiopia Global average

Ethiopia


Category Score

Score: 1.7

Rank: 107

60


Basic enablers






Driving forces

- Wage level 3.0


- Competition 4.5









Demand factors










Innovation aptitude


0 2 4 6 8 10

17.0

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Finland Global average

Finland


Category Score

Score: 6.0

Rank: 3

61


Basic enablers






Driving forces

- Wage level 2.4


- Competition 4.0









Demand factors










Innovation aptitude


0 2 4 6 8 10

11.2

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

France Global average

France


Category Score

Score: 5.0

Rank: 16

62


Basic enablers






Driving forces

- Wage level 0.3


- Competition 2.9









Demand factors










Innovation aptitude



0 2 4 6 8 10

3.1

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Gabon Global average

Gabon

Category Score

Score: 1.5

Rank: 112

63


Basic enablers






Driving forces

- Wage level 0.0


- Competition 3.6









Demand factors










Innovation aptitude


0 2 4 6 8 10

5.1

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Gambia, The Global average

Gambia, The


Category Score

Score: 1.9

Rank: 101

64


Basic enablers






Driving forces

- Wage level 0.1


- Competition 4.5









Demand factors










Innovation aptitude


0 2 4 6 8 10

12.8

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Georgia Global average

Georgia


Category Score

Score: 2.1

Rank: 86

65


Basic enablers






Driving forces

- Wage level 3.0


- Competition 4.6









Demand factors










Innovation aptitude


0 2 4 6 8 10

22.8

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Germany Global average

Germany


Category Score

Score: 5.9

Rank: 4

66


Basic enablers






Driving forces

- Wage level 0.0


- Competition 3.5









Demand factors










Innovation aptitude


0 2 4 6 8 10

5.3

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Ghana Global average

Ghana


Category Score

Score: 2.0

Rank: 94

67


Basic enablers






Driving forces

- Wage level 0.8


- Competition 3.3









Demand factors










Innovation aptitude


0 2 4 6 8 10

9.5

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Greece Global average

Greece


Category Score

Score: 2.7

Rank: 57

68


Basic enablers






Driving forces

- Wage level 0.1


- Competition 4.0









Demand factors










Innovation aptitude


0 2 4 6 8 10

19.6

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Guatemala Global average

Guatemala


Category Score

Score: 2.3

Rank: 71

69


Basic enablers






Driving forces

- Wage level 0.0


- Competition 2.2









Demand factors










Innovation aptitude


0 2 4 6 8 10

9.4

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Haiti Global average

Haiti


Category Score

Score: 1.3

Rank: 119

70


Basic enablers






Driving forces

- Wage level 0.1


- Competition 3.6









Demand factors










Innovation aptitude


0 2 4 6 8 10

18.6

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Honduras Global average

Honduras


Category Score

Score: 2.1

Rank: 88

71


Basic enablers






Driving forces

- Wage level 2.4


- Competition 6.5









Demand factors










Innovation aptitude


0 2 4 6 8 10

1.2

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude




Category Score

Score: 4.5

Rank: 21

72


Basic enablers






Driving forces

- Wage level 0.5


- Competition 4.0









Demand factors










Innovation aptitude


0 2 4 6 8 10

24.6

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Hungary Global average

Hungary


Category Score

Score: 3.4

Rank: 37

73


Basic enablers






Driving forces

- Wage level 3.5


- Competition 3.9









Demand factors










Innovation aptitude


0 2 4 6 8 10

12.8

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Iceland Global average

Iceland


Category Score

Score: 4.0

Rank: 25

74


Basic enablers






Driving forces

- Wage level 0.0


- Competition 3.2









Demand factors










Innovation aptitude


0 2 4 6 8 10

16.2

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

India Global average

India


Category Score

Score: 2.7

Rank: 56

75


Basic enablers






Driving forces

- Wage level 0.1


- Competition 3.6









Demand factors










Innovation aptitude


0 2 4 6 8 10

20.8

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Indonesia Global average

Indonesia


Category Score

Score: 3.1

Rank: 41

76


Basic enablers






Driving forces

- Wage level 0.2


- Competition 3.1









Demand factors










Innovation aptitude


0 2 4 6 8 10

11.8

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Iran, Islamic Rep. Global average

Iran, Islamic Rep.


Category Score

Score: 2.5

Rank: 64

77


Basic enablers






Driving forces

- Wage level 3.8


- Competition 5.8









Demand factors










Innovation aptitude


0 2 4 6 8 10

36.9

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Ireland Global average

Ireland


Category Score

Score: 5.7

Rank: 7

78


Basic enablers






Driving forces

- Wage level 1.9


- Competition 3.7









Demand factors










Innovation aptitude


0 2 4 6 8 10

14.0

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Israel Global average

Israel


Category Score

Score: 5.1

Rank: 15

79


Basic enablers






Driving forces

- Wage level 1.7


- Competition 3.4









Demand factors










Innovation aptitude


0 2 4 6 8 10

15.8

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Italy Global average

Italy


Category Score

Score: 3.8

Rank: 30

80


Basic enablers






Driving forces

- Wage level 0.2


- Competition 3.9









Demand factors










Innovation aptitude


0 2 4 6 8 10

9.8

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Jamaica Global average

Jamaica


Category Score

Score: 2.5

Rank: 66

81


Basic enablers






Driving forces

- Wage level 2.0


- Competition 4.5









Demand factors










Innovation aptitude


0 2 4 6 8 10

18.7

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Japan Global average

Japan


Category Score

Score: 5.8

Rank: 6

82


Basic enablers






Driving forces

- Wage level 0.2


- Competition 4.2









Demand factors










Innovation aptitude


0 2 4 6 8 10

18.5

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Jordan Global average

Jordan


Category Score

Score: 3.1

Rank: 40

83


Basic enablers






Driving forces

- Wage level 0.4


- Competition 3.8









Demand factors










Innovation aptitude


0 2 4 6 8 10

10.8

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Kazakhstan Global average

Kazakhstan


Category Score

Score: 2.3

Rank: 70

84


Basic enablers






Driving forces

- Wage level 0.0


- Competition 3.5









Demand factors










Innovation aptitude


0 2 4 6 8 10

11.4

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Kenya Global average

Kenya


Category Score

Score: 2.3

Rank: 79

85


Basic enablers






Driving forces

- Wage level 1.3


- Competition 4.1









Demand factors










Innovation aptitude


0 2 4 6 8 10

29.5

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Korea, Rep. Global average

Korea, Rep.


Category Score

Score: 4.7

Rank: 18

86


Basic enablers






Driving forces

- Wage level 2.5


- Competition 3.1









Demand factors










Innovation aptitude


0 2 4 6 8 10

6.2

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Kuwait Global average

Kuwait


Category Score

Score: 2.4

Rank: 69

87


Basic enablers






Driving forces

- Wage level 0.0


- Competition 3.5









Demand factors










Innovation aptitude


0 2 4 6 8 10

13.7

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Kyrgyz Republic Global average

Kyrgyz Republic


Category Score

Score: 1.7

Rank: 108

88


Basic enablers






Driving forces

- Wage level 0.6


- Competition 4.4









Demand factors










Innovation aptitude


0 2 4 6 8 10

12.5

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Latvia Global average

Latvia


Category Score

Score: 2.9

Rank: 47

89


Basic enablers






Driving forces

- Wage level 0.3


- Competition 3.7









Demand factors










Innovation aptitude


0 2 4 6 8 10

9.1

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Lebanon Global average

Lebanon


Category Score

Score: 2.6

Rank: 61

90


Basic enablers






Driving forces

- Wage level 0.6


- Competition 4.3









Demand factors










Innovation aptitude


0 2 4 6 8 10

19.4

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Lithuania Global average

Lithuania


Category Score

Score: 3.5

Rank: 35

91


Basic enablers






Driving forces

- Wage level 9.1


- Competition 6.0









Demand factors










Innovation aptitude


0 2 4 6 8 10

4.7

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Luxembourg Global average

Luxembourg


Category Score

Score: 4.3

Rank: 23

92


Basic enablers






Driving forces

- Wage level 0.0


- Competition 3.2









Demand factors










Innovation aptitude


0 2 4 6 8 10

14.1

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Madagascar Global average

Madagascar


Category Score

Score: 1.4

Rank: 118

93


Basic enablers






Driving forces

- Wage level 0.0


- Competition 3.3









Demand factors










Innovation aptitude


0 2 4 6 8 10

10.6

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Malawi Global average

Malawi


Category Score

Score: 1.5

Rank: 117

94


Basic enablers






Driving forces

- Wage level 0.4


- Competition 5.6









Demand factors










Innovation aptitude


0 2 4 6 8 10

22.8

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Malaysia Global average

Malaysia


Category Score

Score: 4.4

Rank: 22

95


Basic enablers






Driving forces

- Wage level 0.3


- Competition 4.8









Demand factors










Innovation aptitude


0 2 4 6 8 10

14.7

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Mauritius Global average

Mauritius


Category Score

Score: 2.6

Rank: 59

96


Basic enablers






Driving forces

- Wage level 0.3


- Competition 3.3









Demand factors










Innovation aptitude


0 2 4 6 8 10

18.4

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Mexico Global average

Mexico


Category Score

Score: 2.8

Rank: 52

97


Basic enablers






Driving forces

- Wage level 0.1


- Competition 3.4









Demand factors










Innovation aptitude


0 2 4 6 8 10

14.0

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Moldova Global average

Moldova


Category Score

Score: 1.9

Rank: 103

98


Basic enablers






Driving forces

- Wage level 0.1


- Competition 3.7









Demand factors










Innovation aptitude


0 2 4 6 8 10

8.3

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Mongolia Global average

Mongolia


Category Score

Score: 2.2

Rank: 82

99


Basic enablers






Driving forces

- Wage level 0.1


- Competition 3.8









Demand factors










Innovation aptitude


0 2 4 6 8 10

18.0

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Morocco Global average

Morocco


Category Score

Score: 2.3

Rank: 74

100


Basic enablers






Driving forces

- Wage level 0.0


- Competition 3.4









Demand factors










Innovation aptitude


0 2 4 6 8 10

10.0

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Mozambique Global average

Mozambique


Category Score

Score: 1.5

Rank: 113

101


Basic enablers






Driving forces

- Wage level 0.2


- Competition 3.7









Demand factors










Innovation aptitude


0 2 4 6 8 10

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Namibia Global average

9.1

Namibia


Category Score

Score: 2.3

Rank: 73

102


Basic enablers






Driving forces

- Wage level 0.0


- Competition 3.2









Demand factors










Innovation aptitude


0 2 4 6 8 10

6.3

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Nepal Global average

Nepal


Category Score

Score: 1.6

Rank: 110

103


Basic enablers






Driving forces

- Wage level 3.3


- Competition 5.7









Demand factors










Innovation aptitude


0 2 4 6 8 10

11.7

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Netherlands Global average

Netherlands


Category Score

Score: 5.7

Rank: 8

104


Basic enablers






Driving forces

- Wage level 2.3


- Competition 5.8









Demand factors










Innovation aptitude


0 2 4 6 8 10

11.9

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

New Zealand Global average

New Zealand


Category Score

Score: 4.0

Rank: 26

105


Basic enablers






Driving forces

- Wage level 0.1


- Competition 3.5









Demand factors










Innovation aptitude


0 2 4 6 8 10

9.5

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Nigeria Global average

Nigeria


Category Score

Score: 1.9

Rank: 96

106


Basic enablers






Driving forces

- Wage level 10.0


- Competition 4.6









Demand factors










Innovation aptitude


0 2 4 6 8 10

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Norway Global average

8.0

Norway


Category Score

Score: 5.8

Rank: 5

107


Basic enablers






Driving forces

- Wage level 0.7


- Competition 4.2









Demand factors










Innovation aptitude


0 2 4 6 8 10

9.7

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Oman Global average

Oman


Category Score

Score: 2.4

Rank: 68

108


Basic enablers






Driving forces

- Wage level 0.0


- Competition 3.0









Demand factors










Innovation aptitude


0 2 4 6 8 10

13.4

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Pakistan Global average

Pakistan


Category Score

Score: 2.0

Rank: 93

109


Basic enablers






Driving forces

- Wage level 0.4


- Competition 4.3









Demand factors










Innovation aptitude


0 2 4 6 8 10

5.8

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Panama Global average

Panama


Category Score

Score: 2.6

Rank: 58

110


Basic enablers






Driving forces

- Wage level 0.1


- Competition 3.6









Demand factors










Innovation aptitude


0 2 4 6 8 10

12.0

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Paraguay Global average

Paraguay


Category Score

Score: 1.5

Rank: 111

111


Basic enablers






Driving forces

- Wage level 0.2


- Competition 3.6









Demand factors










Innovation aptitude


0 2 4 6 8 10

14.5

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Peru Global average

Peru


Category Score

Score: 1.9

Rank: 97

112


Basic enablers






Driving forces

- Wage level 0.1


- Competition 3.1









Demand factors










Innovation aptitude


0 2 4 6 8 10

20.1

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Philippines Global average

Philippines


Category Score

Score: 3.0

Rank: 44

113


Basic enablers






Driving forces

- Wage level 0.5


- Competition 4.1









Demand factors










Innovation aptitude


0 2 4 6 8 10

19.7

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Poland Global average

Poland


Category Score

Score: 3.1

Rank: 43

114


Basic enablers






Driving forces

- Wage level 0.9


- Competition 4.2









Demand factors










Innovation aptitude


0 2 4 6 8 10

13.5

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Portugal Global average

Portugal


Category Score

Score: 3.6

Rank: 32

115


Basic enablers






Driving forces

- Wage level 10.0


- Competition 5.7









Demand factors










Innovation aptitude


0 2 4 6 8 10

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Qatar Global average

9.7

Qatar


Category Score

Score: 4.6

Rank: 19

116


Basic enablers






Driving forces

- Wage level 0.3


- Competition 3.6









Demand factors










Innovation aptitude


0 2 4 6 8 10

23.7

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Romania Global average

Romania


Category Score

Score: 2.8

Rank: 51

117


Basic enablers






Driving forces

- Wage level 0.4


- Competition 3.2









Demand factors










Innovation aptitude


0 2 4 6 8 10

14.2

0

2

4

6

8

10Basic enablers

Driving forces


Demand factorsTechnological sophistication


Innovation aptitude

Russian Federation Global average

Russian Federation


Category Score

Score: 2.8

Rank: 54

118


Basic enablers






Driving forces

- Wage level 0.0


- Competition 4.4









Demand factors










Innovation aptitude


0 2 4 6 8 10

4.8

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Rwanda Global average

Rwanda


Category Score

Score: 2.2

Rank: 80

119


Basic enablers






Driving forces

- Wage level 1.0


- Competition 4.4









Demand factors










Innovation aptitude


0 2 4 6 8 10

12.3

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Saudi Arabia Global average

Saudi Arabia


Category Score

Score: 3.6

Rank: 33

120


Basic enablers






Driving forces

- Wage level 0.0


- Competition 3.7









Demand factors










Innovation aptitude


0 2 4 6 8 10

13.5

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Senegal Global average

Senegal


Category Score

Score: 2.3

Rank: 78

121


Basic enablers






Driving forces

- Wage level 0.2


- Competition 3.1









Demand factors










Innovation aptitude


0 2 4 6 8 10

19.1

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Serbia Global average

Serbia


Category Score

Score: 1.9

Rank: 100

122


Basic enablers






Driving forces

- Wage level 3.8


- Competition 6.8









Demand factors










Innovation aptitude


0 2 4 6 8 10

19.8

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Singapore Global average

Singapore


Category Score

Score: 6.6

Rank: 1

123


Basic enablers






Driving forces

- Wage level 0.7


- Competition 4.1









Demand factors










Innovation aptitude


0 2 4 6 8 10

22.5

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Slovak Republic Global average

Slovak Republic


Category Score

Score: 3.2

Rank: 39

124


Basic enablers






Driving forces

- Wage level 0.9


- Competition 4.0









Demand factors










Innovation aptitude


0 2 4 6 8 10

23.2

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Slovenia Global average

Slovenia


Category Score

Score: 3.9

Rank: 28


Basic enablers






Driving forces

- Wage level 0.2


- Competition 4.2









Demand factors










Innovation aptitude


0 2 4 6 8 10

13.2

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

South Africa Global average

South Africa


Category Score

Score: 2.8

Rank: 53

126


Basic enablers






Driving forces

- Wage level 1.4


- Competition 3.7









Demand factors










Innovation aptitude


0 2 4 6 8 10

13.3

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Spain Global average

Spain


Category Score

Score: 3.6

Rank: 31

127


Basic enablers






Driving forces

- Wage level 0.1


- Competition 3.5









Demand factors










Innovation aptitude


0 2 4 6 8 10

19.5

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Sri Lanka Global average

Sri Lanka


Category Score

Score: 2.4

Rank: 67

128


Basic enablers






Driving forces

- Wage level 0.1


- Competition 3.2









Demand factors










Innovation aptitude


0 2 4 6 8 10

35.5

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Swaziland Global average

Swaziland


Category Score

Score: 1.5

Rank: 116

129


Basic enablers






Driving forces

- Wage level 4.7


- Competition 4.8









Demand factors










Innovation aptitude


0 2 4 6 8 10

17.0

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Sweden Global average

Sweden


Category Score

Score: 5.4

Rank: 12


Basic enablers






Driving forces

- Wage level 10.0


- Competition 5.3









Demand factors










Innovation aptitude


0 2 4 6 8 10

18.0

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Switzerland Global average

Switzerland


Category Score

Score: 6.6

Rank: 2

131


Basic enablers






Driving forces

- Wage level 0.9


- Competition 5.1









Demand factors










Innovation aptitude


0 2 4 6 8 10

28.5

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Taiwan, China Global average

Taiwan, China


Category Score

Score: 5.2

Rank: 14

132


Basic enablers






Driving forces

- Wage level 0.0


- Competition 3.1









Demand factors










Innovation aptitude


0 2 4 6 8 10

11.2

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Tajikistan Global average

Tajikistan


Category Score

Score: 2.0

Rank: 95

133


Basic enablers






Driving forces

- Wage level 0.0


- Competition 3.0









Demand factors










Innovation aptitude


0 2 4 6 8 10

5.6

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Tanzania Global average

Tanzania


Category Score

Score: 1.5

Rank: 114

134


Basic enablers






Driving forces

- Wage level 0.2


- Competition 3.9









Demand factors










Innovation aptitude


0 2 4 6 8 10

26.9

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Thailand Global average

Thailand


Category Score

Score: 3.4

Rank: 38

135


Basic enablers






Driving forces

- Wage level 0.7


- Competition 3.5









Demand factors










Innovation aptitude


0 2 4 6 8 10

6.0

0

2

4

6

8

10Basic enablers

Driving forces




Innovation aptitude

Trinidad and Tobago Global average

Trinidad and Tobago


Category Score

Score: 3.0

Rank: 46

136


Basic enablers






Driving forces

- Wage level 0.1


- Competition 3.1









Demand factors










Innovation aptitude


0 2 4 6 8 10

16.9

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Tunisia Global average

Tunisia


Category Score

Score: 2.2

Rank: 83

137


Basic enablers






Driving forces

- Wage level 0.3


- Competition 3.9









Demand factors










Innovation aptitude


0 2 4 6 8 10

17.6

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Turkey Global average

Turkey


Category Score

Score: 2.7

Rank: 55

138


Basic enablers






Driving forces

- Wage level 0.0


- Competition 3.2









Demand factors










Innovation aptitude


0 2 4 6 8 10

9.2

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Uganda Global average

Uganda


Category Score

Score: 1.7

Rank: 109

139


Basic enablers






Driving forces

- Wage level 0.1


- Competition 3.0









Demand factors










Innovation aptitude


0 2 4 6 8 10

14.2

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Ukraine Global average

Ukraine


Category Score

Score: 2.5

Rank: 65

140


Basic enablers






Driving forces

- Wage level 2.6


- Competition 6.4









Demand factors










Innovation aptitude


0 2 4 6 8 10

8.5

0

2

4

6

8

10Basic enablers

Driving forces




Innovation aptitude

United Arab Emirates Global average

United Arab Emirates


Category Score

Score: 3.8

Rank: 29

141


Basic enablers






Driving forces

- Wage level 2.7


- Competition 5.2









Demand factors










Innovation aptitude


0 2 4 6 8 10

9.8

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

United Kingdom Global average

United Kingdom


Category Score

Score: 5.6

Rank: 10


Basic enablers






Driving forces

- Wage level 4.4


- Competition 4.8









Demand factors










Innovation aptitude


0 2 4 6 8 10

12.3

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

United States Global average

United States


Category Score

Score: 5.6

Rank: 9

143


Basic enablers






Driving forces

- Wage level 0.6


- Competition 3.9









Demand factors










Innovation aptitude


0 2 4 6 8 10

15.2

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Uruguay Global average

Uruguay


Category Score

Score: 2.3

Rank: 72

144


Basic enablers






Driving forces

- Wage level 0.4


- Competition 1.5









Demand factors










Innovation aptitude


0 2 4 6 8 10

13.6

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Venezuela, RB Global average

Venezuela, RB


Category Score

Score: 1.9

Rank: 99

145


Basic enablers






Driving forces

- Wage level 0.1


- Competition 3.6









Demand factors










Innovation aptitude


0 2 4 6 8 10

13.7

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Vietnam Global average

Vietnam


Category Score

Score: 2.1

Rank: 91

146


Basic enablers






Driving forces

- Wage level 0.0


- Competition 4.2









Demand factors










Innovation aptitude


0 2 4 6 8 10

7.9

0

2

4

6

8

10Basic enablers

Driving forces


enablers


sophistication


Innovation aptitude

Zambia Global average

Zambia


Category Score

Score: 2.1

Rank: 81

147


Appendices

Value added for manufacturing is based on ISIC divisions 15-37.

ISIC

division Division description

15 Manufacture of food products and beverages

16 Manufacture of tobacco products

17 Manufacture of textiles

18 Manufacture of wearing apparel; dressing and dyeing of fur

19 Tanning and dressing of leather; manufacture of luggage, handbags, saddlery, harness and footwear

20 Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of

straw and plaiting materials

21 Manufacture of paper and paper products

22 Publishing, printing and reproduction of recorded media

23 Manufacture of coke, refined petroleum products and nuclear fuel

24 Manufacture of chemicals and chemical products

25 Manufacture of rubber and plastics products

26 Manufacture of other non-metallic mineral products

27 Manufacture of basic metals

28 Manufacture of fabricated metal products, except machinery and equipment

29 Manufacture of machinery and equipment n.e.c.

30 Manufacture of office, accounting and computing machinery

31 Manufacture of electrical machinery and apparatus n.e.c.

32 Manufacture of radio, television and communication equipment and apparatus

33 Manufacture of medical, precision and optical instruments, watches and clocks

34 Manufacture of motor vehicles, trailers and semi-trailers

35 Manufacture of other transport equipment

36 Manufacture of furniture; manufacturing n.e.c.

37 Recycling

Appendix 1 – Manufacturing definition


Future forecasted readiness = ∙ Future regression scoreCurrent readiness score

Current regression score

Example (Singapore):

R² = 0.7113

y = 6E-05x + 2.0803

0

2

4

6

8

10

0 20,000 40,000 60,000 80,000 100,000 120,000

Singapore

2016 2021

26%

26%

Appendix 2 – Readiness 2021 Outlook Methodology

11


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