industrial policy


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industrial policy,

government-sponsored economic program in which the public and private sectors coordinate their efforts to develop new technologies and industries. Government provides the financial support and capital to the private sector by direct subsidies, tax credits, or government-run developmental banks. Industrial policy emphasizes cooperation between government, banks, private enterprise, and employees to strengthen the national economy. In the 1980s and 90s, industrial policies enjoyed some success in Germany and Japan. In the United States, such direct government involvement in business planning has traditionally been viewed with suspicion. However, the Advanced Technology Program, begun in 1990, has been instrumental in the research and development of promising, high-risk technologies. U.S. government subsidies can also be found in such areas as defense, energy, transportation, and home construction.

Bibliography

See R. Reich, The Work of Nations (1991).

References in periodicals archive ?
We are modernising our existing industry and new industrial policy will be announced in next few weeks," Prabhu added.
India's Commerce and Industry Minister Suresh Prabhu said a new industrial policy is being framed after 25 years and it is "being designed" to equip Indian industry for the future.
This is the 'helping hand' aspect of industrial policy, and it is particularly relevant to countries at the early stages of industrial development.
In this context, industrial policy was actively discouraged if not straight-up prohibited.
Policy-based finance, tax relief and subsidies for RandD have been employed as the major industrial policy tools up to the present.
More recently, the failures of President Obama's stimulus bill, including the bankruptcies of favored companies like the solar-panel manufacturer Solyndra, have shown how hard it is to get industrial policy right.
The meeting thoroughly discussed the establishment of Sainik Colonies, separate townships for the Kashmiri Pandits, induction of the New Industrial Policy, construction of shelters for the non- state labourers.
Both the US and the EU have adopted new industrial policies in recent years, and even in Canada industrial policy "need not be taboo," according to a public policy think tank.
Authors Altenburg and LEtkenhorst provide readers with an in-depth assessment of the positive and negative repercussions of designing and implementing industrial policy in beginning-stage developing countries.
In Australia, as elsewhere, the experience of industrial policy has been controversial: over much of the twentieth century industrial policies eased balance of payment problems and generated significant employment, yet ultimately low productivity and weak competitiveness endangered the sustainability of state-supported industries (Conley and van Acker 2011).
The interest for the industrial policy comes from the following factors:
Tajik President Emomali Rahmon instructed on Wednesday the Ministry of Industry and New Technologies of Tajikistan to develop a unified program of industrial policy.

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