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Empirical Evidence on Industrial Policy using State Aid Data

Author

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  • Patrizio Bianchi
  • Sandrine Labory

Abstract

This paper provides evidence of the evolution of industrial policy in European countries through a detailed analysis of state aid data. We show the emergence of a new phase of industrial policy in the years 2000-2004. The two previous phases were respectively an 'interventionist' phase, whereby national champions were directly and strongly supported, and a 'liberal' phase where industrial policy meant providing the conditions for the competitiveness of industry, in the sense of only defining the rules of the competitive game. The new phase can be called 'pragmatic'. The reason for such a term is that industrial policy implemented today is somewhere in between the two extremes constituted by the previous two phases, the rules of the game still being emphasised but some vertical industrial policy measures being envisaged where necessary. In other words, stress is still on horizontal policy measures but some vertical policy measures are adopted to meet the specific needs of the various sectors of the economy. The approach is pragmatic in that it focuses on the results rather than on ideology.

Suggested Citation

  • Patrizio Bianchi & Sandrine Labory, 2006. "Empirical Evidence on Industrial Policy using State Aid Data," International Review of Applied Economics, Taylor & Francis Journals, vol. 20(5), pages 603-621.
  • Handle: RePEc:taf:irapec:v:20:y:2006:i:5:p:603-621
    DOI: 10.1080/02692170601005556
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    References listed on IDEAS

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    1. Stephen Martin & Paola Valbonesi, 2006. "State Aid to Business," Chapters,in: International Handbook on Industrial Policy, chapter 7 Edward Elgar Publishing.
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    Cited by:

    1. Kristine Farla, 2015. "Industrial Policy for Growth," Journal of Industry, Competition and Trade, Springer, vol. 15(3), pages 257-282, September.
    2. Patrizio Bianchi & Sandrine Labory, 2011. "Industrial Policy after the Crisis," Books, Edward Elgar Publishing, number 14127.
    3. Caroline Buts & Marc Jegers & Tony Joris, 2011. "Determinants of the European Commission’s State Aid Decisions," Journal of Industry, Competition and Trade, Springer, vol. 11(4), pages 399-426, December.
    4. Sandrine Labory, 2014. "Determining Industrial Policy in Current Conditions of Competition," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 4, December.

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