The rise and fall of De Lorean Motor Cars Limited (DMCL) has been traditionally interpreted as the result either of John De Loreanś psychological flaws or as confirming the supposedly inherent weaknesses in activist industrial policy. However, when the episode is examined in more detail,...

This paper aims to redefine the term competitiveness to enhance its usefulness for the evaluation of country performance and for policy conclusions. We attempt to establish a definition that is adequate if economic policy strives for a new growth path that is more dynamic, socially inclusive and...

Most of the time the budget constraints in the socialist economies were harder than in developing countries and no less hard than in developed countries. The soft budget constraints (SBC) in socialist economies were not pervasive, as most authors believe, but selective, i.e. involved...

In this paper we propose a novel sectoral taxonomy integrating three different attributes of sectors, namely i) the strategic dimension reflected into their belonging to different classes of the Pavitt taxonomy, ii) the capacity to create jobs both internally and externally with respect to their...

This article elaborates a dynamic rationale of industrial policy, focusing on how to strengthen the socio-economic system's ability to evolve, i.e. how to achieve high real income together with qualitative change. It highlights that the ubiquitous rationalities of failure, be it of markets,...

Green industrial policy is normally conceived as measures to foster the development of new green sectors. This chapter explores the ways in which such sectors can be fostered by disrupting existing polluting sectors. It explores several case studies of this dynamic in action, including fossil...

A national-champions-related industrial policy has become (again) en vogue among European politicians. Against this background, our work orders different types of national champions along the industry lifecycle. Different types of locally bound externalities appear along the lifecycle. In a...

Industrial policy is tainted with bad reputation among policymakers and academics and is often viewed as the road to perdition for developing economies. Yet the success of the Asian Miracles with industrial policy stands as an uncomfortable story that many ignore or claim it cannot be...

Much of the theoretical and empirical research regarding the impact of policy shifts on the economies of developing countries has tended to focus on macro-level aggregates, without adequate attention to sectoral-level dynamics. In the literature where such dynamics are emphasized, the focus has...