Industrial Policy: The Coevolution of Public and Private Sources of Finance for Important Emerging and Evolving Technologies

Governments cannot dismiss industrial policy because it is counter-productive. This Element studies selected major innovations that show that the public and private sectors have developed major new technologies by cooperating. The nature of the cooperation varies with each innovation, so simple rules about what each sector should do are suspect. These results challenge the skepticism about the importance of industrial policy, which threatens to undermine the long-term cooperation between the public and private sectors in promoting growth-inducing innovations.

Format: Paperback / softback
Length: 75 pages
Publication date: 14 July 2022
Publisher: Cambridge University Press

Dismissing industrial policy because governments cannot pick winners is a shortsighted approach that undermines the potential for economic growth. This Element, which examines selected major innovations, serves as a powerful testament to the fact that virtually all significant new technologies have emerged through a collaborative synergy between the public and private sectors, each leveraging its unique strengths. By delving into the financing of research and development (R&D), rather than solely focusing on its location, the authors reveal a more profound role for the public sector than commonly assumed. The nature of this cooperation varies depending on the specific innovation, necessitating a nuanced approach that eschews rigid rules prescribing what each sector should do. These findings are particularly significant as they challenge the skepticism surrounding industrial policy in the United States and elsewhere. Such skepticism threatens to undermine the long-term cooperation between the public and private sectors, which is essential for promoting growth-inducing innovations. By recognizing the value of industrial policy and fostering a collaborative environment, governments can unlock the full potential of R&D and drive economic prosperity for all.

Weight: 162g
Dimension: 151 x 229 x 9 (mm)
ISBN-13: 9781009227483