Rationales for Industrial Policy Based on Industry Maturity
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This paper proposes a framework for thinking about industrial policy based on the maturity of a given industry in a country contrasted to the maturity of the industry in a global sense. Existing models for industrial policy tend to be based on the issues faced by emerging economies. By providing a coherent framework for rationales for industrial policy that spans both developed and developing economies, we can assess various industries and discuss the merits of providing support on a comparable basis. The paper provides examples of using the framework to discuss how it can be used and how it could be developed as a strategic tool for policy makers in leading economies.
Keywordsindustrial policy competitiveness policy instruments
This work was part funded by the Cambridge Integrated Knowledge Centre (IKC) in Advanced Manufacturing Technologies for Photonics and Electronics - Exploiting Molecular and Macromolecular Materials, an Engineering and Physical Sciences Research Council (EPSRC) funded programme at the University of Cambridge. It was also supported by the Innovative Manufacturing Research Centre (IMRC) at the Institute for Manufacturing, University of Cambridge, an EPSRC funded programme.
An anonymous reviewer contributed significant time in review which greatly improved the paper and provided it with a much sharper edge. Our thanks to that reviewer for their time and their patience.
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