Institutions and Policies Shaping Industrial Development: An Introductory Note
Mario Cimoli,Giovanni Dosi,Richard R. Nelson,Joseph E. Stiglitz +3 more
- pp 19-38
TLDR
In this paper, the authors argue that even when one encounters a prevailing market form of governance of economic interactions, the latter are embedded in a rich thread of non-market institutions, and they build on the fundamental institutional embeddedness of such processes of technological learning in both developed and catching-up countries and identify some quite robust policy ingredients which have historically accompanied the coevolution between technological capabilities, forms of corporate organisations and incentive structures.Abstract:
In this work, meant as an introduction to the contributions of the task force on Industrial Policies and Development, Initiative for Policy Dialogue, Columbia University, New York, the authors discuss the role of institutions and policies in the process of development. They begin by arguing how misleading the "market failure" language can be in order to assess the necessity of public policies in that it evaluates it against a yardstick that is hardly met by any observed market set-up. Much nearer to the empirical evidence the authors argue that even when one encounters a prevailing market form of governance of economic interactions, the latter are embedded in a rich thread of non-market institutions. This applies in general and is particularly so with respect to the production and use of information and technological knowledge. In this work they build on the fundamental institutional embeddedness of such processes of technological learning in both developed and catching-up countries and we try to identify some quite robust policy ingredients which have historically accompanied the co-evolution between technological capabilities, forms of corporate organisations and incentive structures. All experiences of successful catching-up and sometimes overtaking the incumbent economic leaders – starting with the USA vis-a-vis Britain – have involved “institution building” and policy measures affecting technological imitation, the organisations of industries, trade patterns and intellectual property rights. This is likely to apply today, too, – also in the context of a “globalised” world economy.read more
Citations
More filters
Journal Article
The rise of 'the rest' : Challenges to the west from late-industrializing economies.
Journal ArticleDOI
Breakthrough? China's and India's Transition from Production to Innovation
TL;DR: In this article, a combination of approaches (innovation systems, global value chains and professional networks) is used to analyze four of the most dynamic industries in China and India to find that mounting innovation efforts only rarely materialized in cutting-edge innovations but suggest that if capital accumulation proceeds at the current pace, innovation capabilities will rapidly be built up in China.
Journal ArticleDOI
New Varieties of State Capitalism: Strategic and Governance Implications
TL;DR: In this paper, the authors analyze the new varieties of state capitalism in the 21st century and explore their implications in terms of both strategic and governance outcomes, and discuss how the current theoretical perspectives conceptualize state-owned enterprises' strategic behavior.
Report SeriesDOI
Beyond industrial policy Emerging issues and new trends
TL;DR: In this article, a broad and inclusive definition of industrial policy is proposed, and a new typology based on the orientation of policy and the policy domain is adopted, with a focus on interventions that help build systems, create networks, develop institutions and align strategic priorities.
Journal ArticleDOI
Leviathan as a Minority Shareholder: Firm-Level Implications of State Equity Purchases
TL;DR: In this paper, the authors examined the effect of minority state ownership on firms' returns on assets and on the capital expenditures of financially constrained firms with investment opportunities, finding that minority stakes are less affected by the "agency distortions" commonly found for full-fledged state ownership.
References
More filters
Book ChapterDOI
Economic Welfare and the Allocation of Resources for Invention
TL;DR: In this article, the determination of optimal resource allocation for invention will depend on the technological characteristics of the invention process and the nature of the market for knowledge, which is interpreted broadly as the production of knowledge.
Posted Content
Economic Welfare and the Allocation of Resources for Invention
TL;DR: In this paper, the determination of optimal resource allocation for invention will depend on the technological characteristics of the invention process and the nature of the market for knowledge, which is interpreted broadly as the production of knowledge.
Posted Content
Sources, Procedures, and Microeconomic Effects of Innovation
Giovanni Dosi,Fabio Arcangeli,Paul A. David,Frank Engelman,Christopher Freeman,Massimo Moggi,Richard R. Nelson,Luigi Orsenigo,Nathan Rosenberg +8 more
TL;DR: In this paper, Arcangeli, Paul David, Frank Engelman, Christopher Freeman, Massimo Moggi, Richard Nelson, Luigi Orsenigo, Nathan Rosenberg, Michele Salvati, G. N. von Tunzelman, two anonymous referees, and the participants at the meeting of the Committee on Distribution, Growth, and Technical Progress of the Italian National Research Council (CNR), Rome, November 16, 1985, have helped with various redraftings.