, Volume 58, Issue 4, pp 500–510 | Cite as

Inclusive Industrialization and Entrepreneurship

Thematic Section


Industrialization does not necessarily lead to inclusive development. The ‘trickle-down’ effect that is implicit in many theoretical models seems inadequate given persistent and even rising income inequalities. In this article, we ask why the expectation that industrialization will achieve a ‘more equal income distribution’ does not often materialize, and provide an answer by analyzing the nature of entrepreneurial-driven technological innovation. We conclude with a set of policy recommendations.


development entrepreneurship industrialization inequality innovation technology 



This article draws extensively on an earlier working paper (Naudé and Nagler, 2015) that was prepared as a background document for Chapter 4 of the UNIDO’s Industrial Development Report 2016 (UNIDO, 2015). We are grateful to various participants of the UNIDO’s Expert Group Meetings on the Preparation of the Industrial Development Report 2016 for their comments and suggestions on our inputs into the report. The usual disclaimer applies.


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Copyright information

© Society for International Development 2016

Authors and Affiliations

  1. 1.Maastricht School of Management and Maastricht UniversityMaastrichtThe Netherlands
  2. 2.Erasmus Research and Business SupportErasmus UniversityRotterdamThe Netherlands
  3. 3.UNU-MERIT/MGSoGMaastrichtThe Netherlands

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