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The Political Economy of Capabilities Accumulation: the Past and Future of Policies for Industrial Development. A Preface

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Author Info

  • Mario Cimoli
  • Giovanni Dosi
  • Joseph E. Stiglitz

Abstract

This book is about industrial policies seen as intrinsic fundamental ingredients of all development processes: witness to that, every experience of successful industrialization, ranging from Germany and the USA, almost two centuries ago, all the way to Korea, Taiwan, Brazil, China and India nowadays. The notion of 'industrial policy' is understood here in a quite expansive manner. It comprises policies affecting 'infant industry' support of various kinds, but also trade policies, science and technology policies, public procurement, policies affecting foreign direct investments, intellectual property rights, and the allocation of financial resources. Industrial policies, in this broad sense, come together with processes of 'institutional engineering' shaping the very nature of the economic actors, the market mechanisms and rules under which they operate, and the boundaries between what is governed by market interactions, and what is not. The contributions to this book analyze from different angles the role played by industrial policies, in the foregoing broad sense, and by institution building within that great transformation leading from traditional, mostly rural, economies to economies driven by industrial activities (and nowadays also advanced services), able to systematically learn how to implement and eventually how to generate new ways of producing and new products under conditions of dynamic increasing returns. In this preface we pull together the major threads linking the various chapters of the book, addressing on the grounds of different national and regional experiences the patterns of knowledge accumulation, its political economy, the related distribution of rents, the role of trade, competition and IPR policies; the impact of institutions supporting technological learning and the interaction between macro policies and corporate behaviors.

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Bibliographic Info

Paper provided by Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy in its series LEM Papers Series with number 2008/15.

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Date of creation: 22 Jul 2008
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Handle: RePEc:ssa:lemwps:2008/15

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Related research

Keywords: Industrial development; Knowledge accumulation; Political economy of rent distribution; Institutions supporting technological learning; IPR;

References

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  1. World Bank, 2005. "Economic Growth in the 1990s : Learning from a Decade of Reform," World Bank Publications, The World Bank, number 7370, August.
  2. Giovanni Dosi & Marco Faillo & Luigi Marengo, 2003. "Organizational Capabilities, Patterns of Knowledge Accumulation and Governance Structures in Business Firms. An Introduction," LEM Papers Series 2003/11, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
  3. Cimoli, Mario & Dosi, Giovanni, 1995. "Technological Paradigms, Patterns of Learning and Development: An Introductory Roadmap," Journal of Evolutionary Economics, Springer, vol. 5(3), pages 243-68, September.
  4. Hausmann, Ricardo & Klinger, Bailey, 2006. "Structural Transformation and Patterns of Comparative Advantage in the Product Space," Working Paper Series rwp06-041, Harvard University, John F. Kennedy School of Government.
  5. Mario Cimoli & Jorge Katz, 2003. "Structural reforms, technological gaps and economic development: a Latin American perspective," Industrial and Corporate Change, Oxford University Press, vol. 12(2), pages 387-411, April.
  6. Stiglitz, Joseph E & Weiss, Andrew, 1981. "Credit Rationing in Markets with Imperfect Information," American Economic Review, American Economic Association, vol. 71(3), pages 393-410, June.
  7. William Easterly & Ross Levine, 2002. "Tropics, Germs, and Crops: How Endowments Influence Economic Development," Working Papers 15, Center for Global Development.
  8. Greenwald, Bruce C & Stiglitz, Joseph E, 1986. "Externalities in Economies with Imperfect Information and Incomplete Markets," The Quarterly Journal of Economics, MIT Press, vol. 101(2), pages 229-64, May.
  9. Daron Acemoglu & Simon Johnson & James A. Robinson, 2000. "The Colonial Origins of Comparative Development: An Empirical Investigation," NBER Working Papers 7771, National Bureau of Economic Research, Inc.
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Citations

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Cited by:
  1. Devlin, Robert & Moguillansky, Graciela, 2012. "What's new in the new industrial policy in Latin America ?," Policy Research Working Paper Series 6191, The World Bank.
  2. Adrian Smith & Rob P.J.M. Raven, 2011. "What is protective space? Reconsidering niches in transitions to sustainability," Eindhoven Center for Innovation Studies (ECIS) working paper series 11-05, Eindhoven Center for Innovation Studies (ECIS), revised Aug 2011.
  3. Erik S. Reinert, 2009. "The Terrible Simplifers: Common Origins of Financial Crises and Persistent Poverty in Economic Theory and the new ‘1848 Moment’," Working Papers 88, United Nations, Department of Economics and Social Affairs.
  4. Farla, Kristine, 2012. "Industrial policy for growth," MERIT Working Papers 039, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  5. Szirmai, Adam, 2012. "Proximate, intermediate and ultimate causality: Theories and experiences of growth and development," MERIT Working Papers 032, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  6. Mehta, Swati, 2011. "Economic reforms, technological intensity and industrial development in India," MPRA Paper 41494, University Library of Munich, Germany.
  7. Rainer Kattel & Annalisa Primi, 2010. "The periphery paradox in innovation policy: Latin America and Eastern Europe Compared," The Other Canon Foundation and Tallinn University of Technology Working Papers in Technology Governance and Economic Dynamics 29, TUT Ragnar Nurkse School of Innovation and Governance.

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