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Digital technologies and digitalisation are emerging as new drivers of structural transformation in developing countries. At the firm level, adopting advanced digital technologies offers prospects for improved productivity and competitiveness and, hence, digital industrialisation. However, the determinants of adopting digital technologies in manufacturing firms in developing countries remain anecdotal. This paper uses unique survey data on 516 manufacturing firms in South Africa and a multivariate probit model to examine the determinants of digital technology adoption in South African manufacturing firms. Our results show heterogeneity in the factors explaining digital technology adoption across business functions. Overall, the empirical results reveal that innovation, foreign ownership, exposure to export markets, and higher skilled human capital propel the adoption of digital technologies. In contrast, the lack of capital inhibits the adoption of digital technologies in sampled manufacturing firms in South Africa. We discuss the possible policy implications of these findings and how they fit into the South African Digital Skills policy discourse. [ABSTRACT FROM AUTHOR]

In today's highly globalised, increasingly interlinked and extremely competitive auto industry, it is important to understand how some countries succeed in adopting the latest technologies while others are left behind. The creation of a competitive auto industry requires a deep supply chain. One that can compete in the global automotive space and develop and apply technologies as well as penetrate niche markets. Building on comparative research, this article seeks to understand the factors and power relations that led to the deepening of the Thai auto sector, specifically of its automotive component manufacturers, and how South Africa can learn from it. [ABSTRACT FROM AUTHOR]

The need for structural transformation and inclusivity in South Africa is urgent, given poor economic growth, employment and equality outcomes. This article examines the role of South Africa's main industrial finance institution – the Industrial Development Corporation (IDC) – in providing finance for structural transformation and inclusive economic growth post-apartheid. We find that the IDC's funding has been concentrated in capital-intensive upstream sectors of the economy, with limited concessional finance to facilitate meaningful entry of SMEs into high-value and labour-absorptive downstream sectors. The IDC's funding model (in being a self-sustainable institution) is a significant constraining factor in this regard. Furthermore, the lack of a purposeful integrated industrial policy strategy which directs investments clearly means that IDC's funding priorities are not clearly defined. [ABSTRACT FROM AUTHOR]