Competitive Industrial Performance(CIP) Index 1990-2022
0The Competitive Industrial Performance (CIP) Index is a tool developed by the United Nations Industrial Development Organization (UNIDO) to assess and compare the industrial competitiveness of different countries. It evaluates the ability of nations to produce and export manufactured goods competitively in global markets. The index is based on three main dimensions: the capacity to produce and export manufactured goods, the level of technological sophistication of exports, and the impact of industrial production on the global economy.
Firstly, the CIP Index looks at industrial capacity, which reflects a country's overall manufacturing output and the diversity of its industrial base. It gauges how much a country produces in relation to global production, highlighting its contribution to the global manufacturing sector.
Secondly, it measures export performance by evaluating the volume and technological content of a country’s manufactured exports. This dimension considers whether a country’s exports are technology-intensive, which is often linked to higher value-added activities, innovation, and long-term growth potential.
Lastly, the index considers a country's impact on the global economy. This involves assessing how well a nation is integrated into the international trading system, the quality of its industrial structure, and its resilience to external shocks.
Countries with higher scores in the CIP Index are typically those with more diversified, technologically advanced, and competitive industrial sectors, while lower-scoring countries may rely more on low-tech, labor-intensive production. This index is used to guide policymakers in promoting industrial development strategies, enhancing competitiveness, and supporting sustainable economic growth.
'Goliath' by Scott Buckley - released under CC-BY 4.0. www.scottbuckley.com