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opportunities; industrial sectors; industrial systems and,thus, linkages across sectors; and institutions andregulations at the macroeconomic level. According to thespecific challenges that countries face at differentdevelopment stages, different industrial policy packageswill be needed.Countries will need to coordinate different policyinstruments either to have a combined effect on the samegoal or to manage potential trade-offs among differentgoals. For example, education policies can be aligned tolabour market reforms to improve workers’ employmentopportunities. Technology policies can also be aligned totrade policies or public procurement measures supportingdomestic industrial sectors’ development. Potential tradeoffsarising between economic growth and increasingpressure on natural resources can be addressed by aligningsectoral policies and technology policy, in particular greentechnology development and deployment over time.Achieving integration of policy goals, instruments andgovernance will be difficult, but there are great benefitsfrom even partial successes.Integration does not equal a single integrated policy or asingle integrated governance system. There remains a needfor specialized policies and specialized governmentalbodies. 471 Rather, “effective integration for practicaldecision making centres on acceptance of common overallobjectives, coordinated elaboration and selection of policyoptions, and cooperative implementation designed forreasonable consistency and, where possible, positivefeedbacks” 472 (see Box 5-9 for one policy diagnostic tool).Box 5-9. Production Transformation Policy Reviews – ashared tool for diagnostic and policy guidanceIn a global economy, industrial policies go beyond nationalborders and their design and implementation can benefitfrom a structured policy dialogue between countries. TheOECD Initiative on Global Value Chains, ProductionTransformation and Development is a platform forknowledge sharing and creation, which gathers togethercountries to discuss on an equal footing the challenges andpolicy options for production transformation. A new policytool under the Initiative, the Production TransformationPolicy Review, aims at providing a guiding framework toidentify options and actionable policy responses topromote structural transformation and upgrading based oncomparative assessment of countries’ assets, upgradingpotential and priorities. It operates on a five-pillarframework (see Figure 5-8.), which takes into accountfeatures of success of production transformation strategiesas a basis for assessing countries’ potential. 473Figure 5-8. Production Transformation Policy Review FivepillarFrameworkThe increasing role that new developmental partnershipsplay in sustainable structural transformation at the countryand international level is widely recognised. Manymultilateral organisations consider cooperativepartnerships at the core of their mandate (Box 5-10).Box 5-10. Operationalizing inclusive and sustainableindustrial development - the Programme for CountryPartnershipsUNIDO has developed a new approach to partnerships forinclusive and sustainable industrial development bypartnering with development finance institutions todevelop a new type of technical assistance package for itsMember States known as the Programme for CountryPartnerships (PCP). The development of a PCP includes 1)an analysis of existing strategies and policies forindustrialization; 2) an analysis of all national programmesthat are relevant for industry; 3) the development ofappropriate technical assistance programmes; 4) themobilization of partnerships; and 5) the establishment of anational coordination mechanism for funds mobilizationand results monitoring.Not only can these collaborations make industrial policiesmore effective in addressing existing challenges, they mayalso be used to identify future economic, social andenvironmental challenges via road-mapping and forecastingexercises. Technological road-mapping tools,manufacturing foresight analysis and public-private policyplatforms involving industry associations, research centresand other actors of the innovation system, are widely usedby advanced industrialized economies. For countriesplanning medium-to-long-term industrial policy strategies,developmental partnerships offer the potential to identifycurrent strengths and future production and marketopportunities.100