This book explores how a late-industrialising nation can navigate the transformative shift of Industry 4.0. Drawing on rigorous empirical research and original analysis, it examines Bangladesh’s current technological landscape in manufacturing, the drivers and barriers to technology adoption, and the critical policy imperatives needed to boost productivity, innovation, and sustainable industrial growth.

Despite being a major apparel exporter and an emerging player in pharmaceuticals, Bangladesh remains trapped in low-tech manufacturing. This book investigates how the country can escape the low-productivity spiral by embracing digitalisation and advanced technologies. Employing firm-level data from the World Bank and the Bangladesh Bureau of Statistics, the authors use quasi-experimental techniques, including Propensity Score Matching and Regression Discontinuity Design, to evaluate the relationships among technology use, firm performance, labour productivity, and export outcomes.

This book addresses pressing issues, including environmental sustainability, gender disparities in digital access, and foreign direct investment as a vehicle for technology transfer. It also delivers concrete, actionable recommendations aligned with Bangladesh’s national development priorities.

It is a vital resource for policymakers, researchers, development practitioners, and industry leaders shaping the future of industrialisation in the Global South.

Dr Fahmida Khatun is the Executive Director of the Centre for Policy Dialogue (CPD), an independent civil society think tank that promotes inclusive policymaking in Bangladesh. Dr Khatun has more than 30 years of experience conducting research, organising dialogues, influencing policy, and leading organisations.

Mr Syed Yusuf Saadat is an Economist at the United Nations Development Programme (UNDP) in Bangladesh and a former Research Fellow at the Centre for Policy Dialogue (CPD). Mr Saadat is an author of the book “Youth Employment in Bangladesh—Creating Opportunities, Reaping Dividends”, published by Palgrave Macmillan.

Ms Anika Ferdous Richi is a former Programme Associate in the Research Division of the Centre for Policy Dialogue (CPD). Ms Richi is a Global Futures Scholar with an MA in Economics from the University of Manchester, United Kingdom.