IDEAS home Printed from https://ideas.repec.org/p/ssa/lemwps/2006-02.html
   My bibliography  Save this paper

Institutions and Policies Shaping Industrial Development: An Introductory Note

Author

Listed:
  • Mario Cimoli
  • Giovanni Dosi
  • Richard R. Nelson
  • Joseph Stiglitz

Abstract

In this work, meant as an introduction to the contributions of the task force on Industrial Policies and Development, Initiative for Policy Dialogue, Columbia University, New York, we discuss the role of institutions and policies in the process of development. We begin by arguing how misleading the "market failure" language can be in order to assess the necessity of public policies in that it evaluates it against a yardstick that is hardly met by any observed market set-up. Much nearer to the empirical evidence we argue that even when one encounters a prevailing market form of governance of economic interactions, the latter are embedded in a rich thread of non-market institutions. This applies in general and is particularly so with respect to the production and use of information and technological knowledge. In this work we build on the fundamental institutional embeddedness of such processes of technological learning in both developed and catching-up countries and we try to identify some quite robust policy ingredients which have historically accompanied the co-evolution between technological capabilities, forms of corporate organisations and incentive structures. All experiences of successful catching-up and sometimes overtaking the incumbent economic leaders – starting with the USA vis-à-vis Britain – have involved “institution building” and policy measures affecting technological imitation, the organisations of industries, trade patterns and intellectual property rights. This is likely to apply today, too, – we argue – also in the context of a “globalised” world economy.

Suggested Citation

  • Mario Cimoli & Giovanni Dosi & Richard R. Nelson & Joseph Stiglitz, 2006. "Institutions and Policies Shaping Industrial Development: An Introductory Note," LEM Papers Series 2006/02, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
  • Handle: RePEc:ssa:lemwps:2006/02
    as

    Download full text from publisher

    File URL: http://www.lem.sssup.it/WPLem/files/2006-02.pdf
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Marletto, Gerardo, 2011. "Structure, agency and change in the car regime. A review of the literature," European Transport \ Trasporti Europei, ISTIEE, Institute for the Study of Transport within the European Economic Integration, issue 47, pages 71-88.
    2. Altenburg, Tilman & Schmitz, Hubert & Stamm, Andreas, 2008. "Breakthrough China's and India's Transition from Production to Innovation," World Development, Elsevier, vol. 36(2), pages 325-344, February.
    3. Nuvolari, Alessandro & Vasta, Michelangelo, 2015. "The Ghost in the Attic? The Italian National Innovation System in Historical Perspective, 1861–2011," Enterprise & Society, Cambridge University Press, vol. 16(02), pages 270-290, June.
    4. Carolina Castaldi & Giovanni Dosi, 2008. "Technical Change and Economic Growth: Some Lessons from Secular Patterns and Some Conjectures on the Current Impact of ICT Technology," LEM Papers Series 2008/01, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    5. Leonardo Burlamaqui, 2006. "How Should Competition Policies and Intellectual Property Issues Interact in a Globalised World? A Schumpeterian Perspective," The Other Canon Foundation and Tallinn University of Technology Working Papers in Technology Governance and Economic Dynamics 06, TUT Ragnar Nurkse School of Innovation and Governance.
    6. Lazzarini, Sérgio G., 2012. "Strategizing by the Government: Industrial Policy and Sustainable Competitive Advantage," Insper Working Papers wpe_289, Insper Working Paper, Insper Instituto de Ensino e Pesquisa.
    7. Pablo López & Luis Rosado, 2013. "¿Qué puede aprender Latinoamérica del auge de las TIC en el Asia Pacífico?," REVISTA DE ECONOMÍA DEL CARIBE 014731, UNIVERSIDAD DEL NORTE.
    8. Berhanu Abegaz, 2008. "The Speed Of Structural Convergence In The Manufacturing Industries Of Newly Industrialising Economies," South African Journal of Economics, Economic Society of South Africa, vol. 76(s2), pages 89-109, August.
    9. Erik S. Reinert & Rainer Kattel, 2007. "European Eastern Enlargement as Europe's Attempted Economic Suicide?," The Other Canon Foundation and Tallinn University of Technology Working Papers in Technology Governance and Economic Dynamics 14, TUT Ragnar Nurkse School of Innovation and Governance.
    10. Neij, Lena & Heiskanen, Eva & Strupeit, Lars, 2017. "The deployment of new energy technologies and the need for local learning," Energy Policy, Elsevier, vol. 101(C), pages 274-283.
    11. Naudé, Wim & Szirmai, Adam, 2012. "The importance of manufacturing in economic development: Past, present and future perspectives," MERIT Working Papers 041, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    12. Brandt, Loren & Thun, Eric, 2016. "Constructing a Ladder for Growth: Policy, Markets, and Industrial Upgrading in China," World Development, Elsevier, vol. 80(C), pages 78-95.
    13. Shimada, Go, 2013. "The Economic Implications Of Comprehensive Approach To Learning On Industrial Development (Policy And Managerial Capability Learning):," Working Papers 1001, JICA Research Institute.
    14. Mario Cimoli & Giovanni Dosi & Joseph E. Stiglitz, 2008. "The Future of Industrial Policies in the New Millennium: Toward a Knowledge-Centered Development Agenda," LEM Papers Series 2008/19, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    15. Fatas-Villafranca, Francisco & Jarne, Gloria & Sanchez-Choliz, Julio, 2009. "Industrial leadership in science-based industries: A co-evolution model," Journal of Economic Behavior & Organization, Elsevier, vol. 72(1), pages 390-407, October.
    16. Aouatif El Fakir, 2010. "The State Role in Industries Development: Technological bias, Institutional Learning and Selective Policies
      [Le rôle de l'Etat dans l'industrialisation : biais technologique, apprentissage institut
      ," Working Papers hal-01511778, HAL.
    17. Ciarli, Tommaso & Parto, Saeed & Savona, Maria, 2010. "Conflict and Entrepreneurial Activity in Afghanistan: Findings from the National Risk Vulnerability Assessment Data," WIDER Working Paper Series 008, World Institute for Development Economic Research (UNU-WIDER).
    18. Rainer Kattel & Erkki Karo, 2010. "Is 'Open Innovation' Re-Inventing Innovation Policy for Catching-up Economies?," The Other Canon Foundation and Tallinn University of Technology Working Papers in Technology Governance and Economic Dynamics 30, TUT Ragnar Nurkse School of Innovation and Governance.
    19. Tilman Altenburg & Wilfried Lütkenhorst, 2015. "Industrial Policy in Developing Countries," Books, Edward Elgar Publishing, number 14726, April.
    20. Paraskevopoulou, Evita, 2012. "Non-technological regulatory effects: Implications for innovation and innovation policy," Research Policy, Elsevier, vol. 41(6), pages 1058-1071.
    21. Usman Qadir, 2016. "Pakistan’s Automotive Industry: A Case of Stalled Development," PIDE-Working Papers 2016:137, Pakistan Institute of Development Economics.
    22. Berhanu Abegaz, 2007. "The Speed of Structural Convergence in the Manufacturing Industries of Newly Industrializing Economies," Working Papers 67, Department of Economics, College of William and Mary.
    23. Ajit Singh, 2008. "The Past, Present and Future of Industrial Policy in India: Adapting to the Changing Domestic and International Environment," Working Papers wp376, Centre for Business Research, University of Cambridge.
    24. Mario Cimoli & Gabriel Porcile, 2009. "Sources of learning paths and technological capabilities: an introductory roadmap of development processes," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 18(7), pages 675-694.

    More about this item

    Keywords

    Institutions; development; industrial policies; technological catching-up; trade specialisations.;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ssa:lemwps:2006/02. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://edirc.repec.org/data/labssit.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.