Conclusions: The New Industrial Policy Approach to Technology Upgrading in Three Western Balkan Countries

Abstract

The chapters in this book explored facets of industrial policies aimed at production and technology upgrading in Albania, North Macedonia and Kosovo, three Western Balkan (WB) economies, part of the group of upper-middle-income economies. This characteristic defines the nature of their innovative capacity and industrial activity. It has fundamental implications, also, for the type of industrial policies that can and should be implemented in these economies. Empirical evidence suggests that economic industrialization, based on manufacturing sector growth fuelled by innovation capacity and a supporting physical infrastructure, is at the core of economic development. Thus, a thriving manufacturing sector is considered essential for prosperity and social well-being in the three WB countries considered.