Virtual Library File - Industrial Policy and the Energy Union, Institute for Advanced Studies
This presentation highlights that Europe's industry has many advantages in the global competitiveness race and that the de-industrialisation trend is not limited to the EU. It argues that Europe needs a broader understanding of manufacturing and of the goals of industrial policy, which should target innovation in advanced manufacturing. Industrial policy should be seen as an institutional process based on the principles of embeddedness, discipline and accountability. Rodrik argues that it is important not to exaggerate what industrial policy can accomplish (e.g., it cannot reverse inevitable de-industrialisation). Industrial policy is in fact a process and a frame of mind - it is not a set of policy tools and sectoral priorities. Finally, to achieve a strong industrial policy, the quality of government-business dialog is critical.
