Industrial Strategy: Myth or Reality

Abstract

This paper explores the new wave of policy changes being introduced under the umbrella of ‘industrial strategies' by governments in key industrialized countries, aimed at maintaining a competitive advantage in different industrial sectors; some brought about by change in circumstances, such as Brexit in the UK; others, for instance Industry 4.0 in Germany to maintain its lead in a raft of industry sectors, including the automotive industry; and Japan - as a vehicle to move out of a decade of stagnation; or in Canada, as a means exploiting Artificial Intelligence for enhancing industry progress, and way to support growth in Indigenous People. In other cases, as in the US, there is a denial that a country is pursuing a policy instrument that comprise an industrial strategy, and leaving it to industry to achieve success on its own Using the World Economic Forum Global Competitiveness Report 2016–2017 as a benchmark, a presentation will be made on the different approaches being taken by the UK, Germany, Canada, Japan and the US. This paper will then draw conclusions on the success, or otherwise, of the industry strategies being adopted by the different nations.