DIVE Tool Manual - Diversifying Industries and Value Chains for Exports
Published: 2024
While there is strong consensus on the need to promote diversification, there is far less agreement on how to design and implement diversification and industrial strategies. One fundamental requirement for a successful policy is an analysis of the current productive landscape, in particular the features of the country's existing export and production basket and its dynamism. Such an analysis is a prerequisite for outlining potential paths for industrial development. The main objective of UNIDO’s DIVE tool, which is presented and described here, is to provide strategic guidance that will contribute to the design of production and export diversification policies. The key question we address is which direction an economy should take and specifically, whether it is desirable to exclusively diversify into new products that rely on the set of capabilities that are already available and linked to existing endowments (related products) or whether on the contrary, it is feasible to develop new specializations in products that have limited similarity with the country's existing production structure (unrelated products). Whether to aim for ‘short jumps’ by pursuing specializations in related products or ‘long jumps’ by promoting the development of a comparative advantage in unrelated and more ‘distant’ products, is a fundamental component in policy design, which has often been explored but with little empirical guidance and rigour.
#Trade capacity building #Industrial competitiveness
Diversifying and rebuilding the Ukrainian economy - Application of the DIVE tool
2024 | Author(s): UNIDO
#Training Academy
In this report, we apply UNIDO’s tool DIVE (Diversifying Industries and Value Chains for Exports) to help the Ukrainian government select potential targets for vertical and horizontal industrial policies to diversify and strengthen its economic base.
Peru in the global economy: Recent trends and potential diversification strategies
2023 | Author(s): UNIDO
#Publications
Promoting sustainable industrialization (SDG 9) means promoting a virtuous circle of continuous growth, harnessing economies of scale, driving technological innovation and creating backward and forward linkages to other sectors of the economy.
2023 | Author(s): C. Altomonte, G. Presidente, N. Coniglio, D. Vurchio, C. Pasini, N. Cantore
#Policy Brief
Developed countries are witnessing a resurgence in industrial policy in response to the
‘poly-crisis’ caused by the COVID-19 pandemic, rapid digitalization, climate change and
escalating geopolitical tensions. The concept of ‘strategic autonomy’, i.e. reducing reliance
on key intermediate goods and raw material imports lies at the centre of industrial policy
in the European Union (EU). By analysing the trade patterns of industrial goods at
the product level and applying UNIDO’s DIVE tool, coupled with a novel filtering procedure, we identify the challenges and opportunities for NACs under this new European policy framework while also offering evidence-based policy recommendations for the region’s governments.