Abstract
For nearly three centuries, manufacturing industries have been driving economic growth and rising living standards across the globe. As illustrated in Figures 1.1 and 1.2, building a successful manufacturing sector is a prerequisite in national development as manufacturing makes significant contributions not only to individual countries by raising incomes and enabling the construction of modern infrastructure and housing, but also to the world economy by driving global trade, research and development (R&D), and productivity. According to a recent study by the McKinsey Global Institute,1 manufacturing generates 70% of exports and up to 90% of business spending in R&D. Manufacturing, however, is not monolithic as there are fundamental differences across industries. McKinsey segments manufacturing into five broad buckets based on their sources of competitive advantage and their requirements: the segment of global innovation for local markets, which includes chemicals, pharmaceuticals, transport equipment, machinery and appliances, accounts for 34% of the global manufacturing value added in 2010. Regional processing industries, which include food processing, rubber and plastics, fabricated metal products, and printing and publishing, contribute 28% of value added. Energy and resource-intensive commodities, making up 22% of value added, include wood products, paper and pulp, basic metals, and mineral-based products.
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Ā© 2016 Enver YĆ¼cesan
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YĆ¼cesan, E. (2016). Working Definitions. In: Competitive Supply Chains. Palgrave Macmillan, London. https://doi.org/10.1057/9781137532671_2
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DOI: https://doi.org/10.1057/9781137532671_2
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-55679-3
Online ISBN: 978-1-137-53267-1
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