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In business, that means staying on top of current events, reading about new developments, being intellectually curious about what’s going to happen next, and responding to a dynamic economy in the best way possible. (Become an Elite Mental Athlete By David Siverstein)

Does the phrase "reading about new developments" mean (1) reading newly developed news OR (2) reading about some new developments such as new drugs, new electronic cars, etc? Could you help me clarify it? Thanks.

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It's a broad expression, and it covers any "new" thing which might impact the current understanding of a topic or approach to a problem. I would generally think of new developments as relating to new research of some type. It could also refer to new situations which make the current way of doing things less desirable for some reason or another.

It does not include new news stories, but instead to the things those stories describe. I may be misunderstanding your phrasing, but a native English speaker would not describe news as being developed, but rather produced, reported, or other expressions depending on the specific meaning intended.

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