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2To InspireAnd EnableThe Next GenerationOf Governments2The World Governments Summit is a global platform dedicated toshaping the future of governments worldwide. Each year, the Summitsets the agenda for the next generation of governments with a focuson how they can harness innovation and technology to solve universalchallenges facing humanity.The World Governments Summit is a knowledge exchange center atthe intersection of government, futurism, technology, and innovation.It functions as a thought leadership platform and networking hub forpolicymakers, experts and pioneers in human development.The Summit is a gateway to the future as it functions as the stage foranalysis of future trends, concerns, and opportunities facing humanity.It is also an arena to showcase innovations, best practice, and smartsolutions to inspire creativity to tackle these future challenges. McKinsey & Company is a global managementconsulting firm committed to helping organizationsrealize sustainable, inclusive growth. We work withclients across the private, public, and social sectorsvstrategies and transformative technologies to helporganizations innovate more sustainably, achievelasting gains in performance, and build workforcesthat will thrive for this generation and the next.McKinsey &Company Table Of ContentsExecutive SummaryIntroductionSection 1: The Case For New Sources Of Economic GrowthSection 2: The Magic At The Intersection BetweenTechnologies And SectorsSection 3: Trends As AmplifiersSection 4: The Protagonists Of TomorrowSection 5: Find Your MatchSection 6: The Role Of GovernmentSection 7: The First-Mover AdvantageSection 8: A Sustainable Engine For GrowthConclusionAbout the AuthorsReferences 6101218263240465460666868 In pursuit of boostingeconomic competitiveness,leaders across business,finance, and governmentare relying heavily onthe familiar journeys ofeconomic development —investing in competitiveadvantage, fuelingeconomic growth byproducing better orcheaper goodsand services, andboosting exports.Executive Summary World Government Summit Since World War II, successive waves ofcountries have adopted this industrialexport-led model of economic development,starting with Germany and Japan, followedby the Asian Tigers1, ASEAN, China, to name afew examples.2,3Although successful in the past, thisindustrial export-led model is gettingharder to emulate as global trade becomesmore concentrated. As the McKinsey GlobalInstitute has shown, for 40% of global tradeof goods, the importing economy relies onthree or fewer nations to supply a givengood.4This concentration of global trade withtrade partners who benefit from significantadvantages of scale and technologicaladvancements represents a barrier to entryfor newcomers. Some countries and regionshave had success with an alternative modelto economic growth; rather than breakinginto existing markets to compete withexisting players, they identify, capture, andsecure a position in an emerging economicsector, where barriers to entry are still low.1Asian Tigers include Hong Kong, Singapore, South Korea, Taiwan2Helge and Schindler 20103Hosono 20174White et al. 2023 This paper examines the case for tappinginto emerging sectors as an important sourceof economic growth and development. Westudy examples of different countries andregions and their approach to identifyingnew opportunities and capturing inherenteconomic value. Some of these examplesinclude Bangalore and its rise to becominga hub for tech companies and the businessprocess outsourcing (BPO) industry; Austin,Texas and its emergence as a tech capital inNorth America; and Taiwan and the scaling ofthe semiconductor industry.In the regions studied, we observed thejourneys to move into emerging sectors.We saw how technologies can be appliedto different sectors to create emergingeconomic sectors and studied the influenceof global trends on the creation of newproducts and services. We also looked at howcountries might understand their competitivepositioning in emerging sectors and howgovernments have typically supported thegrowth of emerging sectors in the past as wellas the lessons from innovative ecosystemsthat can support growth. This paper discussesobservations on the role of government in therecent past but does not take a position onthe degree of their involvement. 10IntroductionPolicy-makers around the world deal witha complex variety of objectives, such asinclusion, prosperity, employment, health,sustainability, purchasing power, and wealth.Economic growth is rarely the only objective forpolicy-makers, but its absence is associatedwith undesirable social outcomes, such asunemployment and lower purchasing power.In today’sinterconnectedworld, economicgrowth comeswith internationalcompetitiveness,and hence, mostcountries deploycertain policiesthat are designedto enhance theircompetitiveness.5Currency converted in November 20236UK Government 20237UAE Ministry of Economy 2023 While there is no prescription for howcountries c