Industrial Policy for a Sustainable Growth Path (original) (raw)
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Industrial Policy and Sustainable Development
Industrial Policy and Sustainable Growth, 2017
This chapter examines the evolution of the concept of sustainable development and argues the need for a comprehensive definition of sustainability that provides a framework in which industrial policy fits. Until recently the concept of sustainable development has focused narrowly on poverty and the protection of the environment and natural resources; these are problems that economic development has either been considered to cause directly or that it simply cannot remedy. It is argued in this chapter that the concept of sustainability should be clearly redefined to have an appropriately wide coverage, including economic, social, and institutional factors. Industrial policy then forms an integral part of the unifying concept of "comprehensive sustainability" under which it should work in tandem with other policies. This would increase the efficiency and effectiveness of economic and social policies and could neutralize the trade-off between industrial development and environmental degradation through innovation. Industrial policy, then, would concentrate on building capacity to develop new products and machinery that cater to green growth.
Industrial Policy and Sustainable Development: Theoretical Perspectives
Springer, Cham, 2021
It may not be necessarily easy to define industrial policy, as it lacks a clearly identifiable set of goals, policy instruments, and institutions or designated institutional framework to execute it. However, industrial policy refers to specific government policies aimed at guiding investment and promoting productivity in designated industries. Industry is used to refer to manufacturing or better still production. The manufacturing industry is the same as the secondary sector as opposed to the primary (agriculture, forestry, fisheries, and extractive industries) or tertiary (services) sectors.
Revitalizing industrial policy through smart, micro-level and bottom-up approaches
2020
The purpose of this paper is to systemize the major characteristics and research areas of New Industrial Policy (NIP) and to identify the contribution of the current research monograph to these study areas. Recently, a new wave of industrial policies has been announced and called as new industrial policy by scholars and EU decision-makers. These policies are intended to address the challenges of the Fourth Industrial Revolution as well as concerns about the pace of economic growth and its uneven distribution. The new approach emphasizes place-based, micro-level and bottom-up approaches to growth-oriented industrial transformation and integrates a number of public support measures in this regard. The NIP institutions and implementation programs have already been launched and are in the experimentation phase. The more important are intense and concurrent research efforts that would both evaluate the ongoing experience and enhance theoretical and methodological background. Based on the literature review, we systemize the constituent characteristics of NIP in terms of rationales, objectives, scope and governance levels, institutional framework, as well as major thematic areas and measures. When discussing these core elements, we point to i) their theoretical background, ii) their distinct nature in relation to the earlier industrial policy approaches; iii) major research issues and gaps. Next, we identify the contributions from the individual chapters in this volume and implications for further NIP-related research.
Review of Evolutionary Political Economy
The increasingly acute consequences of the climate crisis, the COVID-19 pandemic, and the energy crisis have put industrial policy back. The papers in this issue examine how different countries implement industrial policy for sustainable development from a variety of perspectives. A successful transition to sustainable development seems to require not only the mix of carrots and sticks but also a right mix of creation versus destruction, as in the case of the creation of renewable businesses and the destruction of fossil-fuel businesses. Furthermore, because institutional diversity and the risk of capture can result in very distinct economic, social, and environmental effects, consideration of heterogeneity at the country and sector levels and coordination of vested interests are essential ingredients for sustainable industrial policies, as shown by the case of industrial policy in France and the two industry cases in India. By contrast, the Amazon Fund case is indicative of the thr...
Is There a Case for Industrial Policy? A Critical Survey
The World Bank Research Observer, 2006
What are the underlying rationales for industrial policy? Does empirical evidence support the use of industrial policy for correcting market failures that plague the process of industrialization? This article addresses these questions through a critical survey of the analytical literature on industrial policy. It also reviews some recent industry successes and argues that public interventions have played only a limited role. Moreover, the recent ascendance and dominance of international production networks in the sectors in which developing countries once had considerable success implies a further limitation on the potential role of industrial policies as traditionally understood. Overall, there appears to be little empirical support for an activist government policy even though market failures exist that can, in principle, justify the use of industrial policy.
From Industrial to Innovation Policy
Journal of Industry, Competition and Trade, 2007
Industrial policy has been a cornerstone of economic policy in Europe after the world war and the transformation of basic industries like coal and steel were key issues at the beginning of European integration. In the 1970s and 1990s industrial policy shifted toward support of high-tech industries. In the seventies the importance of a more systemic view came up, policy had to address the specific weaknesses of the innovation system. The Lisbon agenda finally combines competitiveness with social and environmental goals. Industry plays an important role in generating welfare and industrial policy is in different forms and sorts back, high on the agenda.