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Industrialization is the process of social and economic change whereby a human group is transformed from a pre-industrial society into an industrial one. It is a part of a wider modernization process, where social change and economic development are closely related with technological innovation, particularly with the development of large-scale energy and it metallurgy production. Industrialization also introduces a form of philosophical change, where people obtain a different attitude towards their perception of nature.

There is considerable literature on the factors facilitating industrial modernization and enterprise development.[1] Key positive factors identified by researchers have ranged from favorable political-legal environments for industry and commerce, through abundant natural resources of various kinds, to plentiful supplies of relatively low-cost, skilled and adaptable labor.

One survey of countries in Africa, Asia, the Middle East, and Latin America and the Caribbean in the late 20th century found that high levels of structural differentiation, functional specialization, and autonomy of economic systems from government were likely to contribute greatly to industrial-commercial growth and prosperity. Amongst other things, relatively open trading systems with zero or low duties on goods imports tended to stimulate industrial cost-efficiency and innovation across the board. Free and flexible labor and other markets also helped raise general business-economic performance levels, as did rapid popular learning capabilities. Positive work ethics in populations at large combined with skills in quickly utilizing new technologies and scientific discoveries were likely to boost production and income levels – and as the latter rose, markets for consumer goods and services of all kinds tended to expand and provide a further stimulus to industrial investment and economic growth. By the end of the century, East Asia was one of the most economically successful regions of the world – with free market countries such as Hong Kong being widely seen as models for other, less developed countries around the world to emulate.[2]

According to the original sector classification of Jean Fourastié, an economy consists of a "Primary sector" of commodity production (farming, livestock breeding, exploitation of mineral resources), a "secondary sector" of manufacturing and processing, and a "Tertiary Sector" of service industries. The industrialization process is historically based on the expansion of the secondary sector in an economy dominated by primary activities.

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