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Development and Modern Industrial Policy in Practice

Issues and Country Experiences Edited by Jesus Felipe, Advisor in the Office of the Chief Economist, Economic Research and Regional Cooperation Department, Asian Development Bank, Manila, Philippines
Development and Modern Industrial Policy in Practice provides an up-to-date analysis of industrial policy. Modern industrial policy refers to the set of actions and strategies used to favor the more dynamic sectors of the economy. A key aspect of modern industrial policy is embedding private initiative in a framework of public action to encourage diversification, upgrading, and technological dynamism to achieve development in the twenty-first century. The book reviews key questions that policymakers ask about industrial policy, such as: who selects sectors; what is the rationale for sector selection; what are the main tools to promote sectors; what is the role of human capital; and what are the mechanisms for monitoring and evaluation? Expert contributors discuss how to undertake industrial policy effectively and examine the experiences of Australia, the EU, the Republic of Korea, Malaysia, and the US.
In Association with the Asian Development Bank
Extent: 424 pp
Hardback Price: $160.00 Web: $144.00
Publication Date: 2015
ISBN: 978 1 78471 553 3
Availability: In Stock
Paperback Price: $45.00 Web: $36.00
Publication Date: 2016
ISBN: 978 1 78471 555 7
Availability: In Stock
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  • Economics and Finance
  • Industrial Economics
  • Industrial Organisation
  • Politics and Public Policy
  • Public Policy
  • Social Policy and Sociology
  • Labour Policy
Development and Modern Industrial Policy in Practice provides an up-to-date analysis of industrial policy. Modern industrial policy refers to the set of actions and strategies used to favor the more dynamic sectors of the economy. A key aspect of modern industrial policy is embedding private initiative in a framework of public action to encourage diversification, upgrading, and technological dynamism to achieve development in the twenty-first century.

The book reviews key questions that policymakers ask about industrial policy, such as: who selects sectors; what is the rationale for sector selection; what are the main tools to promote sectors?, what is the role of human capital; and what are the mechanisms for monitoring and evaluation? Expert contributors discuss how to undertake industrial policy effectively and examine the experiences of Australia, the EU, the Republic of Korea, Malaysia, and the US.

Policymakers, multilateral development institutions, and scholars will find the discussions on industrial policy, structural transformation, economic diversification and upgrading, and capabilities to be useful and practical.
‘This superb text defines and describes modern industrial policy. For many years economists, politicians, and policymakers have worried over inward-looking and damaging industrial policies, associating them with poor economic performance and arrested industrial development. At last we have a book which identifies and analyses new forms of modern industrial policy which work effectively and are able to overcome the problems of the past. The book is replete with concrete examples and new conceptual developments, showing how modern industrial policy is able to initiate, upgrade, and transform economic activity for the benefit of all. The evidence is used to provide a new theory of industrial policy, distinguishing modern industrial policy from the practices of the past – leaving no room for doubt as to how policymakers should proceed in the twenty-first century. Essential reading for policymakers, analysts, scholars, teachers, and consultants concerned with industrial policy and modern economic development.’
– Mike Hobday, University of Brighton, UK

‘Jesus Felipe is to be congratulated for assembling a first-rate group of authors to address one of the most important policy issues of our time. Their main contention is that, to succeed, latecomer developing countries need a “modern industrial policy”. Aware of the pitfalls, they provide empirical evidence in support of their arguments. The country studies are particularly interesting. A stimulating volume that deserves to be read, including by the skeptics.’
– Hal Hill, Australian National University?
Contributors: F. Block, J.-M. Chang, K. Farla, J. Felipe, F. Guadagno, C.A. Hidalgo, M.R. Keller, M.H. Khan, K. Lee, J.Y. Lin, C. Long, W.F. Mitchell, C. Rhee, T. Siew Yean, B. Verspagen, Y. Wang, X. Zhang


Contents:

Foreword
Ha-Joon Chang

1. Modern Industrial Policy
Jesus Felipe

2. Issues in Modern Industrial Policy (I): Sector Selection, Who, How and Sector Promotion?
Jesus Felipe and Changyong Rhee

3. Issues in Modern Industrial Policy (II): Human Capital and Innovation and Monitoring and Evaluation
Jesus Felipe and Changyong Rhee

4. Capability Building and Industrial Diversification
Keun Lee

5. Industrial Policy Design and Implementation Challenges
Mushtaq H. Khan

6. Catching Up: Structural Transformation and Diversification
Justin Yifu Lin and Yan Wang

7. Economic Diversification: Implications for Kazakhstan
Jesus Felipe and Cesar A. Hidalgo

8. Industrial Diversification in the People’s Republic of China
Justin Yifu Lin, Cheryl Xiaoning Long and Xiaobo Zhang

9. Do as I Say, or As I Do? US Innovation and Industrial Policy since the 1980s
Matthew R. Keller and Fred Block

10. The Republic of Korea’s Financial Support for Small and Medium Enterprises and Venture Businesses
Jung-moh Chang

11. Industrial Policy: The Australian Experience
William Francis Mitchell

12. Diversification and Industrial Policies in Malaysia
Tham Siew Yean

13. Industrial Policy in the European Union
Kristine Farla, Francesca Guadagno and Bart Verspagen

Index