Supporting Inclusive Growth Effective Policy Design for Developing Medium Technology Sectors

For a middle-income country that is still catching up by attracting existing technologies from more advanced countries, government policy can affect the sectors that are developed by domestic and foreign investors. Policy-makers have to ensure that the sectors that are supported by policy are those that directly or indirectly create the widest possible entry opportunities for domestic entrepreneurs and workers in the near future, and these sectors should also have the maximum positive spillovers and linkages with other sectors so that further economic development can result through these linkages.