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Strategic Technology Policy for New Industrial Infrastructure: Creating Capabilities and Building New Markets

  • Moshe Justman
  • Morris Teubal
Part of the Economics of Science, Technology and Innovation book series (ESTI, volume 9)

Abstract

A new area of technology policy has emerged in the last decade, focusing on the development of technological infrastructure for industry and aimed expressly at promoting economic growth. We refer to this area as “strategic” technology policy, to distinguish it from policies that offer direct, “tactical” support for individual R&D projects They are strategic in the sense that they must be targeted explicitly, requiring a measure of coordination that can only be achieved through the active involvement of business and political leaders at the highest level. This represents a marked departure from earlier programs which were either targeted at non-economic goals such as defense or space exploration [“mission-oriented” technology policies in Ergas’s (1986) terms]; or aimed at supporting market-based technological progress on a wide front through “neutral” subsidies or broadly-based tax relief for R&D activities or for venture capital. These latter policies were generally devoid of industry bias and hence could be administered by an impartial professional bureaucracy. It also represents a departure from the policy approach frequently followed in the newly-industrialized countries, of targeting specific industries. Strategic technology policy targets technological infrastructure rather than industries; it is characterized by “mild” rather than “strong” selectivity [Justman and Teubal (1990)].

Keywords

Critical Mass Market Failure Technological Capability Individual Firm Cooperative Effort 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media Dordrecht 1996

Authors and Affiliations

  • Moshe Justman
    • 1
  • Morris Teubal
    • 1
  1. 1.The Industrial Development Policy GroupThe Jerusalem Institute for Israel StudiesIsrael

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