1887

OECD Science, Technology and Industry Policy Papers

The OECD Directorate for Science, Technology and Innovation (STI) develops evidence-based policy advice on the contribution of science, technology and industry to well-being 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.

English

An industrial policy framework for OECD countries

Old debates, new perspectives

The debate on industrial policy has made a comeback in both academic and policy circles. Yet, no consensus exists on an industrial policy paradigm and the absence of a common reference framework unduly obfuscates the debate – even which interventions are to be considered “industrial policy” is not clear-cut. Against this background, this paper proposes a coherent framework for analysing the formulation of industrial policy, relying on a purposefully broad definition of the latter. Leveraging the proposed framework and a companion paper which synthetises the available empirical evidence, this paper stresses the complementarities between policy instruments, thereby justifying the use of industrial strategies, acknowledges the role of targeted industrial strategies, which can direct technological change and growth, and of demand-side instruments, which can contribute to transformative industrial change, but calls for a stronger emphasis on evaluation and the regular re-assessment of targeted industrial strategies.

English

Keywords: industrial strategies, industrial policy
JEL: Q58: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Environmental Economics: Government Policy; O38: Economic Development, Innovation, Technological Change, and Growth / Innovation; Research and Development; Technological Change; Intellectual Property Rights / Technological Change: Government Policy; O25: Economic Development, Innovation, Technological Change, and Growth / Development Planning and Policy / Industrial Policy; L52: Industrial Organization / Regulation and Industrial Policy / Industrial Policy; Sectoral Planning Methods; L53: Industrial Organization / Regulation and Industrial Policy / Enterprise Policy
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