Conclusions

Abstract

After half a century of controversy about the costs and benefits of implementing industrial policy, economists’ attitude toward public support to business is now taking an intermediate position between the past two extreme views, that is, state planning and intervention versus completely free market mechanisms as the main driving force of economic development. A large majority of economists considers that public action could combine with private initiative to foster restructuring, diversification, and technological dynamism. It appears, therefore, that an up-to-date analysis of the debate and evidence on the costs and benefits of pursuing industrial policy is timely. The present book tries to fulfil this mission drawing on recent developments in the theoretical and empirical literature and on the experience of five industrialized countries (Germany, the United Kingdom, France, the United States, and Japan). It offers a structured and up-to-date analysis relating theoretical arguments, implementation approaches, and effectiveness of industrial policy.