The Business Diagnostics and DynamicsTool (BuDDy) tool uses formal sector business data thatgovernments already collect to analyze patterns and trendsin employment and diagnose constraints to growth and jobcreation. BuDDy gives governments the understanding ofbusiness dynamics needed to develop policies that helpbusinesses create jobs. BuDDy quickly and robustlyidentifies the types of firms that are growing, hiring,investing, raising productivity, and raising real wages, anddoes this at the national or regional level, or by product.BuDDy is simple and adaptable; it has been developed withvarying data sets, and can been linked to spatialinformation, trade data, and household data sets.