This paper presents a dynamic analysis of technological (and industrial) policies directed to business sector restructuring in increasingly knowledge-based economies. It simultaneously considers policies which are aimed at promoting restructuring directly and policies aimed at influencing the facilitating structure of (largely) non-business institutions and organizations. This paper also offers an explicit analysis of the changing portfolio of policies, recognizing the complementarity of both incentives and institutional development, and the likelihood of having to adopt, under a broad set of circumstances, a changing portfolio of horizontal and target "incentives" policies/programs. Copyright 2000 by Oxford University Press.
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