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Traditional resource-based manufacturing industries are moving from high-cost developed countries to low-cost developing countries. In fact, one criteria for development is the dominance of service industries such as banking,insurance and distribution services over the manufacturing sector. As we are seeing now, dependence on service industries alone can lead to very serious problems.

Knowledge Based Industries and Developed Nations

Developed countries have a much better infrastructure for education, training and research, all of which are key inputs to develop an environment for knowledge-based innovation. By building on this advantage, they can rebuild a strong manufacturing sector. It is manufacturing that adds solid wealth in the economy, unlike excessive speculation and extremely complicated financial instruments.

European Union's MANUFUTURE High Level Group of experts have arleady begun discussions to "transform manufacturing from a resource-based to a knowledge-based activity delivering products of higher added value". One of their main responsibilities is to "improve the public image of manufacturing in order to attract and retain future talent capable of generating and applying the new knowledge".

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