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 ?
CM Usman Buzdar, in his statement, said that the implementation of the new industrial policy will create employment for 1.2 million citizens.
'The existing industrial policy was adopted in 1972.
The new industrial policy envisages an enormous financial concessions, attractive investment incentives, infrastructural and services facilities as well as measures for equipping manpower with the required skills and promoting trade and industries.
He spoke at length about the proposed industrial policy and its impact to encourage exports from the country.
He said that a comprehensive industrial policy will create an enabling environment for broad-based industrialisation and encourage innovation in a wide range of sectors.
He said that PTI government has laid the foundation of stable industrial revolution by introducing multi-dimension industrial policy after 20 years.
The stakeholders, who spoke at the launch of an industrial policy book, titled: 'Study report on industrial policy and state of industrialisation in Nigeria,' stressed the urgent need by the Nigeria government to come up with a clear ideology on her idustrialisation.
As Dani Rodrik wrote in a 2008 World Bank working paper (https://siteresources.worldbank.org/EXTPREMNET/Resources/489960-1338997241035/Growth_Commission_Working_Paper_3_Normalizing_Industrial_Policy.pdf), the economics profession has been reluctant to 'normalize' industrial policy as a legitimate part of the economist's tool kit for supporting structural change in low-income countries.
But each of them has also used industrial policy to encourage exports, manage the financial industry and acquire foreign technology -- strategies that are noticeably absent from the standard economics playbook.
As per a report in the Economic Times, government will launch the new industrial policy in two weeks.

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