High Technology Policy in the Alpes-Maritimes and in British Columbia: Two Cases of Adapting Regional Economies to Globalization

This essay compares how subnational actors adapt their economies to globalization with policies to promote high technology industrial development. It examines this issue by comparing high technology policy in the Alpes-Maritimes (France) and in British Columbia (Canada). It argues that globalization has reduced the ability of the Canadian and French national states to direct industrial policy because of external constraints on budgetary and tariff policies, but that subnational authorities in both countries have increased their participation in economic development. Both regions have adopted high technology policies that respond to their specific political, economic, geographic and demographic constraints. The relative success or failure of their policies depends on institutional, economic and cultural variables. Cet article compare comment des acteurs subnationaux adaptent leurs economies a la globalisation avec des politiques visant A promouvoir le developpement industriel avec des technologies de pointe. Il examine cette question en comparant des politiques de technologie de pointe dans les Alpes-Maritimes (France) et en Colombie-Britannique (Canada). L'auteur avance que la globalisation a reduit la capacite des etats nationaux du Canada et de la France d'orienter les politiques industrielles en raison des restrictions extemes sur les politiques budge taires et tarifaires mais que les autorites subnationales dans les deux pays ont augments leur participation au developpement economique. Les deux regions ont adopte des politiques de technologie de pointe qui tiennent compte de leurs restrictions particuliees en matiere de politique, d'economie, de geographie et de demographie. Le succes ou l'echec relatif de ces politiques depend de variables institutionnelles, economiques et culturelles. Although economists may question the usefulness of public intervention in favour of industrialization, political authorities continue to intervene regularly in the economic affairs of firms and industries to alter national or regional comparative advantage. Industrial development is assumed to create externalities or public goods, such as high-skilled jobs, technological progress and spin-offs to other industries. The risks associated with technological investment, however, may be too high for the market to undertake, which is why governments often intervene to promote technological development (Howlett, Netherton and Ramesh 292). Howlett, Netherton and Ramesh argue that we should distinguish between industrial policy and industrial strategy (292). Industrial policy refers to different policy decisions that are designed to alter industrial activity in a country. Industrial strategy is a "collection of interrelated policies directed at industrial development" (Howlett, Netherton and Ramesh 292). Industrial strategy is a much more coherent approach because it enables all the policy actors to have a vision of the desired goals of the strategy. It often involves the targeting of "certain industries singled out for their growth potential" (Howlett, Netherton and Ramesh 296). The main purpose of targeting is to alter the comparative advantage of a nation's or a region's industry by promoting the development of high-technology industries. French and Canadian governments have used targeting in the past with variable levels of success; however, I argue that a new form of industrial targeting - cluster building - is being introduced in these countries at the regional level in response to the constraints of globalization. The impact of globalization on industrial policy-making has been a subject of great interest to scholars in international political economy (Howlett, Netherton and Ramesh; Boyer and Drache) and corporate strategy (Porter; Ohmae). Countries have adapted to global economic changes in a number of ways: by negotiating regional economic agreements; by adopting stable, anti-inflationary macroeconomic policies at the national level; and by devolving some aspects of industrial strategy to the subnational level (Hugon). …