Three global megatrends are creating increasingly frequent disruptions, which are in turn reshaping global value chains and pushing manufacturing systems to transform themselves.

These megatrends are: emerging technologies, climate change and geopolitical tensions.Their fallouts – ranging from economic uncertainty and changes in governance to environmental degradation and technological step-changes – are becoming ever more common, requiring a twopronged approach of short-term adaptation and longer-term transformation from manufacturers and governments alike. The World Economic Forum, in collaboration with Cambridge Industrial Innovation Policy, University of Cambridge, and the United Nations Industrial Development Organization (UNIDO) has identified five grand challenges for companies and governments to work on and help inform the next generation of industrial strategies