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Table 5-1. Industrial policy waves and the emerging industrial policy consensusSource: Andreoni (2015)With the resurgence of interest in the development ofmanufacturing industries and production systems,developed and developing countries are nowexperimenting with a broad array of industrial policies.They are no longer exclusively focused on sector-specificinterventions or general enabling policies. In line withchanges in the global production landscape and dramatictechnological changes, new industrial policies have beenincreasingly targeting production systems and sectoralinterfaces, as well as their underpinning technologyplatforms and business organisation models. 392 Thesystemic and cross-sectoral nature of some of these policyinterventions poses challenges to policymaking, but alsoopens new opportunities.New thinking on industrial policy’s role also focuses onpromoting innovation to switch manufacturing towardssustainable production processes, such as with theemergence of “re-manufacturing” and “closed-loop”production systems 393 .5.2. Economic growth and structural transformation5.2.1. Developing manufacturing industries: economicgrowth, sustained technological change andworld tradeResearch suggesting that the narrowing of productivitygaps across countries happens more predictably in themanufacturing sector than in other sectors of the economyis one reason why developing countries justifiably viewindustrialization as an important policy objective. 394A fundamental feature of development is structuraltransformation 395 , that is, a process of sectoralrecomposition of the economy involving the developmentof new production and technology systems and changes inemployment composition. Manufacturing industries havealways been central to this process because of the directand indirect role they play in the transformation of theoverall economy via production and productivity, thedevelopment of technological and organisationalcapabilities, the promotion of sustained innovation, and thecreation of decent jobs. Sustaining economic growthrequires the ability of an economy to “constantly generate89