Skip to main content
SpringerLink
Log in

Development Strategies and Industrial Policies Amidst the Pervasive Use of Internet

  • Living reference work entry
  • First Online:
Industrial Policy and Sustainable Growth

Part of the book series: Sustainable Development ((SD))

  • 129 Accesses

Abstract

This chapter considers the support and viability of government conducting industrial policy in the digital age. The accessibility and pervasive use of the internet by companies and consumers has diminished the power of the government in having an advantage in information and data availability to justify its intervention in economic planning and resource allocation. Nonetheless, the public goods characteristics of information and knowledge together with ICT-enabled networks and platforms for social economic transactions has given rise to a disruptive innovation. New business models, new products, and new production and delivery system have provided new scope and justification for new form of government industrial policy. Many scholars have recommended that government to act more like a venture capitalist to place bets rather than picking winners. Network economies and winner-take-all phenomenon necessitate the government to take on “soft” industrial policy, whose goal is “to enable closer co-ordination between individual economic agents and to allow for experimentation in the economy.”

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution

Institutional subscriptions

References

  • Aghion P (2012) Growth policy and the state: implications for the design of a European growth package, Note for LSE growth commission. LSE, London

    Google Scholar 

  • Aghion P, Blundell R, Griffith R, Howitt P, Prantl S (2009) The effects of entry on incumbent innovation and productivity, The Review of Economics and Statistics, 91(1): 20–32

    Google Scholar 

  • Aghion P, Boulanger J, Cohen E (2011) Rethinking industrial policy. Bruegel Policy Brief. Issue 2011/04

    Google Scholar 

  • Aghion P, Cai J, Dewatripont M, Du L, Harrison A, Legros P (2015) Industrial policy and competition, American economic journal: Macroeconomics, American Economic Association, 7(4):1–32

    Google Scholar 

  • Aiginger K (2007) Industrial policy: a dying breed or a re-emerging phoenix. J Indust Compet Trade 7(3):297–323

    Article  Google Scholar 

  • Anders G (1999) Web giants Amazon, eToys bet on opposing market strategies. Wall Street J Interact Ed, 3 Nov. http://www.wsj.com/articles/SB941666571967749918. Accessed 22 June 2016

  • Anderson C (2008) The long tail: why the future of business is selling less of more. Paperback

    Google Scholar 

  • Baldwin R (2006) Globalization: the great unbundling(s), paper prepared for globalization challenges for Europe and finland project, Economic Council of Finland. Available at: http://www.giis/Globalisation: the great unbundling(s)-Graduate Institute of International Studies.../Baldwin_06-09-20.pdf. [accessed on 24 April 2017]

  • Baldwin R, Evenett S (2012) Value creation and trade in 21st century manufacturing: what policies for UK manufacturing? In: Greenaway D (ed) The UK in a global world. CEPR, London, pp 71–128

    Google Scholar 

  • Bogdan G (2006) Clusters, industrial policy and entrepreneurship: a critical view. Rom Econ Bus Rev 1.1:39–46

    Google Scholar 

  • Bower JL, Christensen CM (1995) Disruptive technologies: catching the wave. Harv Bus Rev January–February:43–53

    Google Scholar 

  • Bulu M, Yalcintas M (2015) Cluster as a development policy tool: the Turkish experience. In: Yulek M (ed) Economic planning and industrial policy: public administration, governance and globalization. Springer International Publishing, Switzerland, pp 331–344. Chapter 15

    Google Scholar 

  • Crafts N, Hughes A (2013) Industrial policies for the medium to long term, Future of manufacturing Project, Evidence paper No. 37. Foresight, Government Office for Science, UK. www.bis.gov.uk/foresight

    Google Scholar 

  • DeLong JB, Summers LH (2001) How important will the information economy be? some simple analytics. http://www.j-bradford-delong.net/econ_articles/summers_jh_2001/jh_analytics.pdf. Accessed 27 June 2016

  • Department of Economic and Social Affairs (DESA) (2000) Economic globalization: trends, risks and risk prevention. Committee for Development Policy (CDP) Background Paper No 1, United Nations: Development Policy and Analysis Division. http://www.un.org/en/development/desa/policy/cdp/cdp_background_papers/bp2000_1.pdf Accessed 22 June 2016

  • Desrochers P (2004) Cluster-based economic strategy, facilitation policy and the market process. Rev Aust Econ 17(2/3):233–245

    Article  Google Scholar 

  • Dhéret C, Morosi M, Frontini A, Hedberg A, Pardo R (2014) Towards a new industrial policy for Europe, European Policy Centre (EPC) Issue Paper NO.78

    Google Scholar 

  • Ezell S (2010) The economist’s strange attack on industrial policy, the breakthrough. http://thebreakthrough.org/archive/the_economists_strange_attack. Accessed 22 June 2016

  • Felipe J (ed) (2015) Development and modern industrial policy in practice: issues and country experiences. Edward Elgar, Cheltenham

    Google Scholar 

  • Frank RH, Cook PJ (1996) The Winner-Take-All Society, New York: Penguin Random House

    Google Scholar 

  • Harrison AE, Andres Rodriguez-Clare (2010) Trade, Foreign investment, and industrial policy. In: Rodrik D, Rosenzweig M (eds.) Handbook of development economics, vol. 5; Elsevier, North Holland: Amsterdam

    Google Scholar 

  • Haufler V (2001) Public role for the private sector: industry self-regulation in a global economy. Carnegie Endowment for International Peace, Washington, DC

    Google Scholar 

  • Hausmann R, Klinger B (2007) The structure of the product space and the evolution of comparative advantage. Center for International Development (Harvard University) Working Paper No. 146. Cambridge, MA: Harvard University

    Google Scholar 

  • Hausmann R, Rodrik D (2003) Economic development as self-discovery. Journal of Development Economics, vol. 72(2):603–633

    Google Scholar 

  • Hidalgo CA, Hausmann R (2008) A network view of economic development. Dev Altern 12(1):5–10

    Google Scholar 

  • Hughes A (2015) Perspectives on industrial policy for the global age. Policy Netw. http://www.policy-network.net/pno_detail.aspx?ID=4838&title=Perspectives+on+industrial+policy+for+the+global+age. Accessed 22 June 2016

  • Humphrey J, Mansell R, Pare D, Schmitz H (2003) The reality of E-commerce in developing countries, project report of London School of Economics and Political Science (LSE) and the Institute of Development Studies (IDS), at Sussex. https://www.ids.ac.uk/ids/global/pdfs/e-commreport.pdf. Accessed 22 June 2016

  • Jaffe AB (1986) Technological opportunity and spillovers of R&D: Evidence from firm’s patents, profits, and market value. American Economic Review, 76(5):984–1001

    Google Scholar 

  • Johansen B (2007) Get there early: sensing the future to compete in the present. Berrett-Koehler Publishers, Inc., San Francisco

    Google Scholar 

  • Krugman P, Obstfeld M (2003) International economics: theory and policy. Addison Weasley, Boston

    Google Scholar 

  • Levy JD (2006) The state also rises: the roots of contemporary state activism. In: Levy JD (ed) The state after statism. Harvard University Press, Cambridge, MA. Chapter 1

    Google Scholar 

  • Lin JY, Wang Y (2015) Catching up: structural transformation and diversification. In: Felipe J (ed.) Development and Modern Industrial Policy in Practice, United Kingdom: Edward Elgar Publishing, Chapter 6

    Google Scholar 

  • Nathan M, Overman H (2013) Agglomeration, clusters and industrial policy. Oxf Rev Econ Policy 29(2):383–404

    Article  Google Scholar 

  • Navarro L (2003) Industrial policy in the economic literature: recent theoretical developments and implications for EU policy, Enterprise Papers 12/2003. Brussels, EU DG Enterprise

    Google Scholar 

  • Owen G (2012) Industrial policy in Europe since the second World War: what has been learnt? ECIPE Occasional Paper No. 1/2012. Brussels ECIPE.

    Google Scholar 

  • Persaud A (2001) The knowledge gap. Foreign Aff 80(2):107–117

    Article  Google Scholar 

  • Rayport JF, Sviokla JJ (1995) Exploiting the virtual value chain. Harv Bus Rev November–December:75–85

    Google Scholar 

  • Rodrik D (2004) Industrial policy for the twenty-first century, CEPR Discussion Paper 4767. Centre for Economic Policy Research, London

    Google Scholar 

  • Shapiro C (1999) Exclusively in network industries. George Mason Law Review 1–11

    Google Scholar 

  • Shapiro C, Varian H (1999) Information rules: a strategic guide to the new economy. Harvard Business School Press, Boston

    Google Scholar 

  • Sharma SK (2005) Socio-Economic impacts and influences of E-Commerce in a digital economy. In: Sharma SK (ed) Digital Economy: Impacts, Influences and Challenges, USA: Idea Group Inc., Chapter 1

    Google Scholar 

  • Stiglitz JE, Orszag PR, Orszag JM (2000) The role of government in the digital age. Study commissioned by the Computer & Communications Industry Association, October 2000.

    Google Scholar 

  • Toh MH (2015) Modern economic development concepts. In: Yulek M (ed) Economic planning and industrial policy: public administration, governance and globalization. Springer International Publishing, Switzerland, pp 29–38. Chapter 2

    Google Scholar 

  • Tonnelson A (2000) The race to the bottom. Westview Press, Boulder

    Google Scholar 

  • United Nations Conference on Trade and Development (UNCTAD) (2007) Manual for production of statistics on the information economy, Geneva: United Nations Publication

    Google Scholar 

  • Visionary Analytics (2016) Disruptive innovations: policy Implications. http://www.visionary.lt/disruptive-innovation-policy-implications. Accessed 27 June 2016

  • Wade R (2010) After the crisis: industrial policy and the developmental state in low-income countries. Global Pol 1(2):150–161

    Article  Google Scholar 

  • Weiss J (2011) Industrial policy in the twenty-first century, UNU-WIDER Research Paper WP2011/55. Helsinki, UN-WIDER

    Google Scholar 

  • Wissema J, Djarova JG (2015) A new look at innovation policy: twelve recommendations. In: Yulek M (ed) Economic planning and industrial policy: public administration, governance and globalization. Springer International Publishing, Switzerland, pp 269–287. Chapter 13

    Google Scholar 

  • Wolf D (2007) Prepared and resolved: The strategic agenda for growth, Performance and change, Traverse, Michigan, U.S.A: Dsb Pub

    Google Scholar 

  • Wolman H, Hincapie D (2010) Clusters and cluster-based development: a literature review and policy discussion. Working Paper, George Washington Institute of Public Policy (GWIPP), 17 Dec 2010

    Google Scholar 

  • Yi KM (2003) Can vertical specialization help explain the growth of world trade? J Polit Econ 111:52–102

    Article  Google Scholar 

  • Young S, Hood N, Peters E (1994) Multinational enterprises and regional economic development. Reg Stud 28(7):657–677

    Article  Google Scholar 

  • Yulek M (2015a) Revisiting national economic planning and industrial policy: concepts, experience and the ecosystem. In: Yulek M (ed) Economic planning and industrial policy: public administration, governance and globalization. Springer International Publishing, Switzerland, pp 3–27. Chapter 1

    Google Scholar 

  • Yulek M (ed) (2015b) Economic planning and industrial policy: public administration, governance and globalization. Springer International Publishing, Switzerland

    Google Scholar 

  • Zysman J, Newman A (2007) The state in the digital economy. In: Levy JD (ed) The state after statism. Harvard University Press, Cambridge, MA. Chapter 7

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Strategy & Policy, National University of Singapore, Mochtar Riady Building, 15 Kent Ridge Drive, 119245, Singapore, Singapore

    Mun Heng Toh

Authors
  1. Mun Heng Toh
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Mun Heng Toh .

Editor information

Editors and Affiliations

  1. Istanbul Commerce University , İstanbul, Turkey

    Murat Yülek

Rights and permissions

Reprints and permissions

Copyright information

© 2017 Springer Nature Singapore Pte Ltd.

About this entry

Cite this entry

Toh, M.H. (2017). Development Strategies and Industrial Policies Amidst the Pervasive Use of Internet. In: Yülek, M. (eds) Industrial Policy and Sustainable Growth. Sustainable Development . Springer, Singapore. https://doi.org/10.1007/978-981-10-3964-5_24-1

Download citation

  • DOI: https://doi.org/10.1007/978-981-10-3964-5_24-1

  • Received:

  • Accepted:

  • Published:

  • Publisher Name: Springer, Singapore

  • Print ISBN: 978-981-10-3964-5

  • Online ISBN: 978-981-10-3964-5

  • eBook Packages: Springer Reference Economics and FinanceReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences

Publish with us

Policies and ethics

Search

Navigation