The theme of the 2016 Industrial Development Report is how technological change and structural transformation can interact to realise Inclusive and sustainable types of Industrial Development. The report distinguishes three dimensions of sustainability, first the ability to sustain economic growth over longer periods of time, second the inclusiveness of the process of structural transformation and finally the environmental sustainability of the process. The report searches for synergy between the three dimensions, but also discusses the various trade-offs between them. The report consists of six chapters. The first chapter will focus on global patterns of structural change and transformation, their evolution over time, and the way in which they affect different countries across the globe. The second chapter analyses how innovation can act as a driver of structural transformation and catch up, in particular in the industrial sector. Chapter 3 addresses the relationships between changes in the structure of the economy and the ability to sustain growth. Both chapter 2 and 3 pay attention to the role of global value chains in achieving growth enhancing structural transformations. The focus of chapter 4 is on achieving inclusiveness. Chapter 5 addresses environmental concerns. The final chapter discusses policy implications and policy options.