Blog Post

Reflections from UNIDO: Contributing to the 2026 Industrial Development Report

PhD fellow Rafael de la Vega reflects on his six-month sabbatical at UNIDO, contributing to the 2026 Industrial Development Report (IDR).

Exploring the Future of Industrialisation

In response to the fast-moving changes reshaping our social, economic, and political landscapes, IDR 2026 will explore the future of industrialisation. The report will examine how industry is expected to respond to ongoing transformations, including the reconfiguration of global value chains and technological advances under the Fourth Industrial Revolution, and how these dynamics may affect countries, especially those in the developing world.

Some of the key questions we are asking include:

  • What kinds of global value chain reconfigurations should we expect due to geopolitical shifts, and what development paths do they open or close off?
  • How will countries with ageing populations adapt, and what role might labour-saving automation technologies play in managing shrinking workforces?
  • Conversely, how can countries with growing youth populations harness this demographic advantage, even in economies still dominated by capital-intensive sectors?
  • What new industrial opportunities are emerging from the urgent need to green our production systems?

These and related questions will be explored in the first part of the report, which outlines the megatrends shaping the global industrial future. 

Regional Perspectives and Sectoral Opportunities 

The second part of the IDR will take a regional approach, with dedicated chapters for:

  • Sub-Saharan Africa
  • Latin America and the Caribbean
  • Eastern Europe
  • The Middle East and North Africa
  • East Asia
  • Central and South Asia

Developing regions face a series of important bottlenecks to industrialisation. Some examples include extractive institutions inherited from colonisation, brain drain, reliance on foreign technology tailored to other economic contexts, fragmented regional markets, and high costs of capital. Each regional chapter will begin by identifying the bottlenecks that are most critical for the region, ranging from institutional challenges and infrastructure gaps to financial constraints and market structures.

These diagnostics will be followed by an exploration of sectoral opportunities, illustrated through short case studies of particularly promising industries. At this stage, partners preparing background reports for the regional chapters of IDR 2026 are in the process of selecting which case studies to include. These will reflect both the broader megatrends shaping global industry and the specific local factors that make certain sectors especially relevant in each context.

The 2026 IDR aims to offer practical, forward-looking guidance to policymakers navigating the challenges of industrial transformation in a complex and increasingly uncertain world. Drawing on past lessons, it points toward actionable recommendations for the future. The diversity across regions also means the report avoids one-size-fits-all approaches. What counts as an industrial opportunity in one context may not apply in another, and the IDR takes those distinctions seriously. 

A Collaborative and Enriching Experience 

Although the report is led by UNIDO’s Industrial Policy Research Unit, it relies on a broad network of contributors both within and beyond the organisation. Even during my short time on the team, I’ve had the chance to connect with several specialists working on industrialisation from a range of perspectives.

One of my responsibilities has been identifying potential collaborators for specific topics, a process that has drawn on skills I developed through systematic literature reviews during my PhD. It’s been a pleasant surprise to be able to apply those skills in a different setting.

Effective collaboration also depends on shared conceptual understanding. Many of the terms used in industrial policy have different meanings across the literature. Working on the IDR has offered a valuable opportunity to revisit these concepts and reflect on how they’re evolving in the most recent research.

All of this has been enriched by working alongside engaged and generous colleagues and leaders, which has been one of the most rewarding aspects of this experience. 

Looking Ahead to November 2026

The IDR plays an important role not only in synthesising current trends but in shaping the global conversation on industrial development. Previous editions of the IDR are available on the UNIDO website. As mentioned, each edition is organised around a central theme, such as public policy in the 2024 edition.  

The 2026 edition will be launched at UNIDO’s 26th General Conference in November. For those interested in staying informed, I encourage you to get in touch to sign up for the UNIDO Industrial Policy Research & Statistics Division newsletter. 

Suggested citation: de la Vega Rafael., "Reflections from UNIDO: Contributing to the 2026 Industrial Development Report ," UNU-MERIT (blog), 2025-06-19, 2025, https://unu.edu/merit/blog-post/reflections-unido-contributing-2026-industrial-development-report.