is commensurate with the need or with the urgency of 

 the questions that policymakers are facing daily. 



The case for a wide-ranging, energetic program of 

 industrialization research was stated as long ago as 

 1973 in a report, "Meeting the Challenge of 

 Industrialization," by the National Academy of Sciences 

 and the National Academy of Engineering: 



The majority of [the developing] nations are 

 newly independent, intent on shaping modes and 

 strategies of industrialization to meet their 

 own goals, needs, and values. Their people 

 are experiencing rapid social and political 

 changes, and their opinions vary on the ways 

 in which industrialization can serve their 

 needs. ... 



The identification of suitable modes of 

 industrialization is pivotal in selecting 

 specific industrial activities that create 

 productive complementarities both within and 

 between countries, achieve rural-urban 

 balance, and improve economic relations 

 between developing and developed countries. 

 This achievement will require innovative, 

 interdisciplinary effort to study means of 

 shaping industrial development to peoples' 

 needs, to avoid the mistakes and human costs 

 of past industrial transformations. . . . 



Our present understanding of these dimensions 

 of the industrialization process is clearly 

 inadequate, as is our knowledge of the 

 criteria that will guide developing countries 

 in their new programs of industrial 

 development. Moreover, existing approaches to 

 problems of industrial location and 

 international division of labor need 

 reinterpretation in a world that is rapidly 

 changing and in which markets are often slow 

 to adjust to the growth of competitive new 

 industries. . . . 



Structural shifts in industrial activities in 

 both advanced and developing economies are 

 essential to these transformations. Steadily 

 increasing access is required for manufactures 

 of industrializing countries to markets of 

 industrialized countries. increased flows of 

 capital from rich to poor regions are required 

 in forms that will result in rising 

 productivity and wages in developing regions, 

 as well as in lower international costs.... 



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