{"title":"Industrial Policy","authors":"Erik S. Reinert","doi":"10.1093/oxfordhb/9780198862420.013.20","DOIUrl":"https://doi.org/10.1093/oxfordhb/9780198862420.013.20","url":null,"abstract":"The aim of this chapter is to give a brief overview of the historical arguments that have been used to argue for industrial policy in its widest sense, that is, that what a nation (or region) specializes in producing may be of key importance to the wealth and welfare of its inhabitants. Historically it has been generally agreed that symmetrical trade—trade in similar goods between nations at similar levels of technological development—has tended to be beneficial to both trading partners. In these cases, employing Ricardian trade theory has not been detrimental to the trading partners. This chapter explains the situations when Ricardian trade theory is not beneficial to one of the trading partners, and—at the same time—the economic mechanisms which have been identified as making industrial policy desirable. That manufacturing matters has, in various forms, been presented as a main reason for industrial policy, at least since England’s import-substitution policies during the 1400s: adding value to English wool by spinning it into woollen cloth and garments. This was mainly achieved by raising export duties on raw wool, making English wool cheaper for domestic manufacturers than for foreign ones. However, the reasons why manufacturing matters have varied. And that understanding has gone from intuitive inferences to scientific evidence. This chapter will historically present this process and the most common arguments for industrial policy over time.","PeriodicalId":129497,"journal":{"name":"The Oxford Handbook of Industrial Policy","volume":"8 3 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-10-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123687661","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"European Industrial Policy","authors":"P. Bianchi, S. Labory","doi":"10.1093/oxfordhb/9780198862420.013.22","DOIUrl":"https://doi.org/10.1093/oxfordhb/9780198862420.013.22","url":null,"abstract":"This chapter examines industrial policy implemented in European countries across time, especially after the Second World War and in recent years. It briefly shows that industrialization never occurs without strong supporting industrial policy to provide the enabling conditions for the deep structural changes involved, such as infrastructure and capabilities, especially human capital. Industrialization in the eighteenth and nineteenth centuries is associated with the creation and consolidation of nation states, leading to national perspectives on industrial development and industrial policy, at the expense of regional imbalances. After the Second World War, three phases of industrial policy take place: strong and selective intervention in the first three decades of the period, market-led approaches in the 1980s and 1990s, and a more pragmatic approach at the turn of the century, where deep structural changes require industrial and institutional adjustments. With globalization and the emerging new technological paradigm of Industry 4.0, innovation and skills, as well as the territorial roots of industrial development, seem to be important aspects of industrial policy today. The chapter also argues that the multilevel governance policy framework has to adapt to current disruptions, particularly in Europe.","PeriodicalId":129497,"journal":{"name":"The Oxford Handbook of Industrial Policy","volume":"6 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-10-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"120965286","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}