UK Industrial Policy: Old Tunes on New Instruments?

Beath, John

doi:10.1093/oxrep/18.2.221

Cited by 33 publications

(21 citation statements)

References 19 publications

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“…However, all four of these countries have a strategic element in their identification of industrial sectors, with Japan and China being particularly focused on seeking new areas of competitive advantage. The United Kingdom adopted a manufacturing strategy in 2002, refreshed in 2008(BERR, 2009a, but this primarily horizontal approach was overtaken by the broader and more sectorally focused approach to industrial policy evident since 2009.…”

Section: Discussionmentioning

confidence: 99%

“…(Beath, 2002) "...restructuring policies in favour of more dynamic activities generally, regardless of whether those are located within industry or manufacturing per se." (Rodrik, 2004) Industrial policy is "the activity which creates a favourable environment for European business in general, the manufacturing sector and its industries in specific."…”

Section: Definitions Of Industrial Policymentioning

confidence: 99%

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Beyond Industrial Policy

Warwick

2013

OECD Science, Technology and Industry Policy Papers

115

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(www.oecd.org/sti) develops evidence-based policy advice on the contribution of science, technology and industry to wellbeing and economic growth. STI Policy Papers cover a broad range of topics, including industry and globalisation, innovation and entrepreneurship, scientific R&D and emerging technologies. These reports are officially declassified by an OECD Committee. ABSTRACTThis paper reviews the evidence on emerging thinking and new trends in the sphere of industrial policy. The paper adopts a broad and inclusive definition of industrial policy, and proposes a new typology based on the orientation of policy and the policy domain. Looking at a typology according to the policy domain, the paper proposes a framework based on growth accounting, which parallels the evolution of thinking about the rationale for industrial policy interventions, which has moved from a traditional approach based largely on product market interventions (production subsidies, state ownership, tariff protection), through market failure-correcting taxes and subsidies operating mainly on factor markets (R&D incentives, training subsidies, investment allowances, help with access to finance) to a focus on interventions that help build systems, create networks, develop institutions and align strategic priorities.Recent developments in both the theory and practice of industrial policy suggest that it is possible to find a theoretical rationale for a government role. However, there are important practical difficulties, not least the risk of government failure, the risk of rent-seeking behaviour and the potential use of industrial policies for protectionist goals. Unless these problems are addressed, traditional approaches to industrial policy seem destined to fail, and the historical record has not been kind. 'Horizontal' measures are still the preferred way forward but there may be some aspects of policy where strategic choices need to be made. The risks associated with selective-strategic industrial policy can be minimised through a 'soft' form of industrial policy, based on a more facilitative, co-ordinating role for government, consistent with the systems approach described in this paper. While not immune to the dangers of government failure, such an approach, if carefully designed and implemented, has a much higher chance of success than the costly and distortionary selective-defensive industrial policy interventions of the past. One clear message to emerge from the paper is the need for much better monitoring and evaluation of industrial policy initiatives.

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Section: Discussionmentioning

confidence: 99%

Section: Definitions Of Industrial Policymentioning

confidence: 99%

Beyond Industrial Policy

Warwick

2013

OECD Science, Technology and Industry Policy Papers

115

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“…Unfortunately the definition of industrial policy is unclear (Aiginger 2007;Beath 2002;Aiginger and Sieber 2006) and continues to be used in a variety of ways both in academic writing and in policy practice. As Geroksi (1989): p.20) notes "Any random collection of six economists is sure to produce at least a dozen different opinions on the subject …" and this makes this job difficult, as depending on the agreed scope industrial policy can be all inclusive or highly targeted at very small parts of the economy.…”

Section: Existing Foundations For Industrial Policymentioning

confidence: 99%

“…As Beath (2002) notes for the UK "… the 1980s saw the discussion of a positive industrial policy slip off the agenda for discussion … this also involved a move away from the vertical targeting approach … to more horizontal, sector-neutral policies …".…”

Section: The Move To Productivity and Competitivenessmentioning

confidence: 99%

“…Whether industrial policy is clearly distinct from innovation policy (or even science and technology policy) is in some ways a matter of labels, but labels that matter as the term has such negative connotations. Another version of this re-labelling is the appearance of manufacturing strategies, as discussed by Beath (2002). While the points of leverage may have moved, it appears the core themes of competitiveness, innovation, and competition remain constant.…”

Section: Current Issues For Industrial Policymentioning

confidence: 99%

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Rationales for Industrial Policy Based on Industry Maturity

Livesey

2011

J Ind Compet Trade

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This paper proposes a framework for thinking about industrial policy based on the maturity of a given industry in a country contrasted to the maturity of the industry in a global sense. Existing models for industrial policy tend to be based on the issues faced by emerging economies. By providing a coherent framework for rationales for industrial policy that spans both developed and developing economies, we can assess various industries and discuss the merits of providing support on a comparable basis. The paper provides examples of using the framework to discuss how it can be used and how it could be developed as a strategic tool for policy makers in leading economies.

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UK Industrial Policy: Old Tunes on New Instruments?

Cited by 33 publications

References 19 publications

Beyond Industrial Policy

Beyond Industrial Policy

Rationales for Industrial Policy Based on Industry Maturity

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