The political economy of French industrial policymaking

Abstract

The aim of this article is to analyse how the current design and governance of French industrial policy is impeding technical and economic change. Industrial policy needs to address the “grand challenges” such as climate change by driving radically new economic and technical development. After analysing recent trends and the various stakeholders and levels involved in industrial policymaking in France, we show how the complexity; the conflicts between targets, instruments and stakeholders and the capture of industrial policymaking lead to inertia rather than change. The participation of incumbents at every stage of the policymaking reinforces short-term business strategies rather than creating a radical new path. We consider that a multi-level industrial democracy could enable the conditions of change to ensure sustainable industrial development. This requires reviewing the roles of each stakeholder, the way that funds are allocated, and how the implementation of these public policies is monitored.

New perspectives and issues in industrial policy for sustainable development: from developmental and entrepreneurial to environmental state

“…Klebaner and Voy-Gillis ( 2022 ) analyze the challenges faced by industry in the context of energy transition on the one hand and reducing its negative environmental impacts on the other. In the authors’ view, France’s current industrial policy instead of promoting change leads to stagnation because of conflicts between aims, tools, and stakeholders, as well as the high level of complexity.…”

“…As the not-so-optimistic example of France shows (Klebaner and Voy-Gillis 2022 ), the current industrial policy, rather than supporting energy transition, leads to a standstill due to its complexity and conflicting goals, tools, and stakeholders. Furthermore, as Ghana’s Sekondi–Takoradi case shows, the growth-centered industrial policy without local ownership has not generated the expected results in terms of urban inclusion and environmental protection (Obeng-Odoom 2022 ).…”