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R&D invesment (% of GDP), 2009new fast growing activities characterized by higher valueadded and productivity”. 396,397,398,399Manufacturing represents a hub for technical progress inboth developed and developing countries 400 . Empiricalevidence shows that manufacturing is, by far, the sector inwhich most R&D investment is undertaken. 401 Investmentin the development of manufacturing technologies andinfrastructure contributes significantly to productivitygrowth across sectors and the overall transformation ofindustrial systems.Economic literature and development experience of thepast several decades demonstrate the important role ofinnovation and technology in growth dynamics. 403Developing countries have accorded a higher priority toscience and technology, and some large emergingeconomies are becoming sizeable locations of R&Dactivities, including through foreign investment 404 .Figure 5-2. R&D investment in selected OECD and non OECDcountries, 2009 4054According to the 2008 report by the Commission on Growthand Development, all countries that have enjoyed decadesof high growth rates have exhibited structural change. Onthe other hand, “all countries that remain poor have failedto achieve structural change”. In a 2013 study by UNIDO,evidence from 50 developing countries in the period 1970-2007 shows that a strong correlation exists between percapita growth in the economy and the average change inshare of manufacturing sector value added (MVA) in GDP.Box 5-1. Manufacturing transformation and economicdevelopment 402The manufacturing sector plays a key role in economicdevelopment due to its scale economies, strong backwardlinkages with other sectors, and high potential forproductivity catch-up and innovation. Throughout differentstages of development, the structure of the manufacturingsector changes continuously, to catapult an agrarianeconomy onto an industrialization path, deepen theindustrialization process through capital accumulation, andsustain growth based on technological development andinnovation.Figure 5-1 from UNIDO’s on-going structural changeresearch shows the patterns of manufacturingdevelopment. See technical notes for elaboration.Figure 5-1. Patterns of manufacturing development3.532.521.510.5OECD Average = 2.3 %ArgentinaKenyaRussiaIndiaMoroccoBrazilCosta RicaSingaporeSouth AfricaFranceUnited KingdomKoreaGermanyJapanUnited StatesChinaMalaysiaThailandIndonesia00 10 20 30 40 50 60 70 80 90 100R&D investment financed by the private sector (%), 2009Note: 2009 or latest available year. Large, medium and small bubbles refers togross domestic expenditure on R&D of US$ 100, 10 and 1 billion, respectively(US$ PPP, constant 2005 prices).The transition process towards low-carbon developmentand SCP has stimulated interest in green technologies.Innovative activity in this domain can be assessed throughpatent registrations for the novel meta-class Y02, which is apatent category proposed by the European Patent Officefor climate change prevention and mitigation technologies(see Figure 5-3). 406 There is a rising interest in clean energyand environmental impact mitigation technologies amongtraditional innovation-leaders, such as Japan and the USA,but also among rising innovators, particularly China. 407 Thelast has developed significant cleaner productiontechnologies 408 .90