an article by David Bailey (University of Birmingham, UK), Dan Coffey (Leeds University Business School, UK), Maria Gavris (Warwick Business School, UK and Carole Thornley (Keele Business School, UK) published in Cambridge Journal of Regions, Economy and Society Volume 12 Issue 3 (November 2019)
Abstract
Industrial policy is a potential vehicle for more participative and democratic forms of policy formation. But in Britain an ademocratic policy culture is transforming into an undemocratic one.
This article explores the roots of this in major sea changes in the industrial policy climate of Western Europe, where non-discriminatory and aspatial policy stances are now giving way under pressure to openly discriminatory policies aimed at favoured industries or locations.
The British case is contrasted with France, Germany and Italy, and their variety of responses. It is proposed that an extended notion of ‘place’ offers a basis for social dialogue.
JEL Classification: L98, O52, R11
Showing posts with label industrial_policy. Show all posts
Showing posts with label industrial_policy. Show all posts
Tuesday, 26 November 2019
Friday, 2 August 2019
Can industrial policy foster innovation in renewable energy technologies in the OECD and in EU regions?
an article by Alkis Theonas Pitelis, Nicholas Vasilakos and Konstantinos Chalvatzis (Norwich Business School, University of East Anglia, UK) and Christos N Pitelis (Abu Dhabi University and Brunel University London, Abu Dhabi, United Arab Emirates) published in Cambridge Journal of Regions, Economy and Society Volume 12 Issue 2 (July 2019)
Abstract
We cross-fertilise scholarship on industrial policy (IP) and renewable energy (RE) innovation, and submit that RE serves as a general purpose technology that contains more specific RE technologies (RETs).
We develop five hypotheses and provide econometric evidence for the impact of demand-pull, technology-push and systemic IP instruments on different RETs. Using a large dataset on RET innovation and policy instruments across 34 OECD countries, we test for the role of country experience, for EU North–South regional variations and for the quality of RE innovations.
Our results support our theory-derived hypotheses.
JEL Classification: G18, G28, L52, C30
Abstract
We cross-fertilise scholarship on industrial policy (IP) and renewable energy (RE) innovation, and submit that RE serves as a general purpose technology that contains more specific RE technologies (RETs).
We develop five hypotheses and provide econometric evidence for the impact of demand-pull, technology-push and systemic IP instruments on different RETs. Using a large dataset on RET innovation and policy instruments across 34 OECD countries, we test for the role of country experience, for EU North–South regional variations and for the quality of RE innovations.
Our results support our theory-derived hypotheses.
JEL Classification: G18, G28, L52, C30
Tuesday, 23 July 2019
Industrial policy: new technologies and transformative innovation policies?
Editorial by David Bailey (Birmingham Business School, UK), Amy Glasmeier (Massachusetts Institute of Technology, USA), Philip R. Tomlinson (University of Bath, UK; Birmingham Business School, UK) and Peter Tylerd (Department of Land Economy, Cambridge, UK) published in Cambriudge Journal of Regions, Economy and Society Volume 12 Issue 2 (July 2019)
Industrial Policy and industrial strategy
Deep history
In many parts of the world, stagnant economies, rising inequality and sluggish regional growth have renewed interest in and experimentation with industrial policy. This reflects a longstanding trend in economic history, where economic downturns have invariably led to follow-on attempts of some form of state-led economic revival and subsequent policy cycles, usually accompanied with regime change to contain some type of shock (Williams, 2012). Examples abound.
In the late 18th century, in the USA, the first evidence of industrial policy—largely through the efforts of Alexander Hamilton (the First US Treasury secretary) and his 1791 Report on the Subject of Manufactures—accompanied the nation’s hard-fought economic independence which energised the nation’s elite to emulate features of European industrialisation in pursuit of modernisation; policy instruments included closed borders and import substitution, frequently aided by piracy and industrial espionage (see Irwin, 2004). These ideas were strongly supported by the German–American economist Frederick List (1841), who provided one of the first theoretical treatises for industrial policy by arguing that policymakers should take a long-term view of economic development and intervene accordingly, especially to promote domestic manufacture and commerce (see Chang, 2002).
Full text (PDF 9pp)
Hazel’s comment:
And finally I read something that makes sense to a lay person with an interest in global economics, namely me.
Industrial Policy and industrial strategy
Deep history
In many parts of the world, stagnant economies, rising inequality and sluggish regional growth have renewed interest in and experimentation with industrial policy. This reflects a longstanding trend in economic history, where economic downturns have invariably led to follow-on attempts of some form of state-led economic revival and subsequent policy cycles, usually accompanied with regime change to contain some type of shock (Williams, 2012). Examples abound.
In the late 18th century, in the USA, the first evidence of industrial policy—largely through the efforts of Alexander Hamilton (the First US Treasury secretary) and his 1791 Report on the Subject of Manufactures—accompanied the nation’s hard-fought economic independence which energised the nation’s elite to emulate features of European industrialisation in pursuit of modernisation; policy instruments included closed borders and import substitution, frequently aided by piracy and industrial espionage (see Irwin, 2004). These ideas were strongly supported by the German–American economist Frederick List (1841), who provided one of the first theoretical treatises for industrial policy by arguing that policymakers should take a long-term view of economic development and intervene accordingly, especially to promote domestic manufacture and commerce (see Chang, 2002).
Full text (PDF 9pp)
Hazel’s comment:
And finally I read something that makes sense to a lay person with an interest in global economics, namely me.
Friday, 21 June 2019
The return of the policy that shall not be named: Principles of industrial policy
a column by Reda Cherif and Fuad Hasanov for VOX: CEPR’s Policy Portal
The 'Asian miracles' and their industrial policies are often considered as statistical accidents that cannot be replicated.
The column argues that we can learn more about sustained growth from these miracles than from the large pool of failures, and that industrial policy is instrumental in achieving sustained growth. Successful policy uses state intervention for early entry into sophisticated sectors, strong export orientation, and fierce competition with strict accountability.
Continue reading
The 'Asian miracles' and their industrial policies are often considered as statistical accidents that cannot be replicated.
The column argues that we can learn more about sustained growth from these miracles than from the large pool of failures, and that industrial policy is instrumental in achieving sustained growth. Successful policy uses state intervention for early entry into sophisticated sectors, strong export orientation, and fierce competition with strict accountability.
Continue reading
Tuesday, 19 February 2019
Energy scenario: Employment implications of the Paris Climate Agreement
A report by Richard Lewney, Eva Alexandri, Donald Storrie and José-Ignacio Antón Pérez published by Eurofound
This report explores the potential employment and economic impacts of an EU transition to a low-carbon economy by 2030 – on the EU, and on other regions of the world. It analyses the impacts across sectors and occupations, with a particular focus on manufacturing.
The report highlights that the impact of such a transition is positive for the EU as a whole, although with considerable variation between sectors. The positive impact on employment is largely due to the investment required to achieve this transition, along with the impact of lower spending on imported fossil fuels. The consequent shift in production has implications for labour market demand.
The analysis is carried out using the E3ME macro-econometric model, which provides information on sectoral impacts, together with the Warwick Labour Market Extension model for occupational analysis. Further analysis of the employment developments in Europe is undertaken using Eurofound’s European Jobs Monitor.
Full text (PDF 32pp)
This report explores the potential employment and economic impacts of an EU transition to a low-carbon economy by 2030 – on the EU, and on other regions of the world. It analyses the impacts across sectors and occupations, with a particular focus on manufacturing.
The report highlights that the impact of such a transition is positive for the EU as a whole, although with considerable variation between sectors. The positive impact on employment is largely due to the investment required to achieve this transition, along with the impact of lower spending on imported fossil fuels. The consequent shift in production has implications for labour market demand.
The analysis is carried out using the E3ME macro-econometric model, which provides information on sectoral impacts, together with the Warwick Labour Market Extension model for occupational analysis. Further analysis of the employment developments in Europe is undertaken using Eurofound’s European Jobs Monitor.
Full text (PDF 32pp)
Thursday, 30 August 2018
Low-pay sectors, earnings mobility and economic policy in the UK
an article by Neil Lee (London School of Economics and Political Science, UK), Anne Green (University of Birmingham, UK) and Paul Sissons (Coventry University, UK) published in Policy & Politics Volume 46 Number 3 (July 2018)
Abstract
Low pay is a significant and growing issue in many developed economies. Sectoral approaches are often used in both economic development and labour market policy, yet there is little evidence on how low pay and earnings mobility vary by sector.
This article investigates this issue in the UK.
It shows pronounced sectoral variations in low pay and earnings mobility. It highlights the policy implications of growth in large, low paying sectors. While policymakers have focused on high-wage, high-skill sectors, efforts to improve productivity in low-wage sectors could improve living standards and the UK's economic performance.
Full text (PDF 23pp)
Abstract
Low pay is a significant and growing issue in many developed economies. Sectoral approaches are often used in both economic development and labour market policy, yet there is little evidence on how low pay and earnings mobility vary by sector.
This article investigates this issue in the UK.
It shows pronounced sectoral variations in low pay and earnings mobility. It highlights the policy implications of growth in large, low paying sectors. While policymakers have focused on high-wage, high-skill sectors, efforts to improve productivity in low-wage sectors could improve living standards and the UK's economic performance.
Full text (PDF 23pp)
Monday, 20 February 2017
A tale of two cities: Rescaling economic strategy in the North Midlands
an article by Will Rossiter (Nottingham Trent University, UK) published in Local Economy Volume 31 Issue 8 (December 2016)
Abstract
This paper addresses the implementation (or mediation) of industrial policy at the regional and local level in the northern sub-region of the English East Midlands. At the heart of both New Labour and Coalition Government policy on local and regional economic development was a simple proposition to the effect that if decision-making for economic development could be better aligned to ‘functional economic geographies’, better economic outcomes should result.
The abolition of Regional Development Agencies and creation of Local Enterprise Partnerships brought this proposition into sharp focus. This paper explores the consequences of this shift in the spatial scale of decision making for the development process and policy content of place based economic strategies.
Strategies produced for three ‘nested’ geographic areas in the north midlands are compared. An apparent tension between economic development and institutional trajectories is considered.
Full text (PDF)
Abstract
This paper addresses the implementation (or mediation) of industrial policy at the regional and local level in the northern sub-region of the English East Midlands. At the heart of both New Labour and Coalition Government policy on local and regional economic development was a simple proposition to the effect that if decision-making for economic development could be better aligned to ‘functional economic geographies’, better economic outcomes should result.
The abolition of Regional Development Agencies and creation of Local Enterprise Partnerships brought this proposition into sharp focus. This paper explores the consequences of this shift in the spatial scale of decision making for the development process and policy content of place based economic strategies.
Strategies produced for three ‘nested’ geographic areas in the north midlands are compared. An apparent tension between economic development and institutional trajectories is considered.
Full text (PDF)
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