Industrial Policy in the 21st Century

By Ha-Joon Chang, Antonio Andreoni. Development and Change, 2020

296 citations recorded by the source corpus.

Industrial policy is back at the centre stage of policy debate, while the world is undergoing dramatic transformations. This article contributes to the debate by developing a new theory of industrial policy, incorporating some issues that have been neglected so far and taking into account the recent changes in economic reality. The authors explore how the incorporation of some of the neglected issues — commitments under uncertainty, learning in production, macroeconomic management (especially demand management), and conflict management — changes the theory. They then examine how the theory of industrial policy should be modified in light of recent changes in economic reality: the rise of the global value chain, financialization and new imperialism. This contribution aims at promoting a pragmatic approach to industrial policy and pointing to new areas for policy intervention in a changing world.

Subfields: Economics and Econometrics, Political Science and International Relations

View Paper: https://www.semanticscholar.org/paper/f2e2a1bb44c4172ed6d663707da4be57ee69fe41

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In Economics and Econometrics

1. David Bailey
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4. David J. Teece

In Political Science and International Relations

1. Christos N. Pitelis
2. P. Tomlinson

Citations in the corpus

• A place-based developmental regional industrial strategy for sustainable capture of co-created value (2018, background): “In this sense, smart specialisation reflects contemporary thinking about modern industrial policy as a ‘process of discovery’ (Rodrik, 2004, 2008), whereby firms and the state can co-learn about underlying costs and opportunities and engage in strategic coordination.”