Theoretical foundations of industrial policy
AbstractHighlighting the revival of industrial-policy thinking in an era of globalisation and disenchantment with free trade, this paper reviews alternative and, in part, competing theoretical foundations of industrial policy: neoclassical foundations, structuralist approaches, and pragmatic approaches inspired by new growth and development theories. One of the main conclusions is that the industrial-policy debate is no longer between advocates of horizontal and vertical policies, but between those who deny any potential for state intervention to make economies more dynamic and those who seek to clarify the specific conditions for appropriate intervention. Another salient conclusion is that state intervention is especially important in a knowledge-based economy, as witnessed by successful industrial policies in - for instance - the United States, Germany and France, and Finland.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by European Investment Bank, Economics Department in its series EIB Papers with number 4/2006.
Length: 23 pages
Date of creation: 07 Apr 2009
Date of revision:
Contact details of provider:
Postal: 100, boulevard Konrad Adenauer, L-2950 Luxembourg
Phone: (+352) 43 79 1
Fax: (+352) 43 79 68 895
Web page: http://www.eib.org/efs/
More information through EDIRC
industrial policy; mainstream approach; heterodox approaches;
Find related papers by JEL classification:
- B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Institutional; Evolutionary
- H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
- L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-04-13 (All new papers)
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Anna Schumacher).
If references are entirely missing, you can add them using this form.