Transcript Aims of the
Industrial and Innovation Policy Aims of the course and definition of the subject Course web page http://www.econ.ku.dk/okojang/ Perspectives on industrial policy Precisely defined production factors and techniques. Instead: Human capital the most important factor, i.e. production factors and techniques are created and changes Benevolent maximizer of social welfare Instead: A pluralistic model of politics Illustrative examples of types of Industrial Policy: Japan and Korea • Infant Industries • Picking the Winners Germany • Infrastructure • Education and labour market USA • Mission-oriented policy The European Union • The Lisbon Strategy Method for analysing industrial policies Audretsch (1993) “/Industrial policy/….The initiation and coordination of governmental activities to leverage upward the productivity and competitiveness of the whole economy and of particular industries….. Industrial Policy ….is the logical outgrowth of the changing concept of comparative advantage” Commodity and Geographical Composition of UK Trade Per cent Year Export Manufactures Import Manufactures Export to Europe Import from Europe 1913 75.5 20.2 39.5 44.6 1992 81.9 78.4 63.8 63.7 Source: P Krugman, Brookings Paper on Economic Activity 1:1995 Supertrading Economies: Country Export, percentage of GDP, 1990 Singapore 174 Hong Kong 144 Malaysia 78 Belgium 70 Ireland 64 The Netherlands 52 Source: P Krugman, Brookings Paper on Economic Activity 1:1995 Premises of the course: • Policies that give leverage to the competitiveness of the whole economy or of particular sectors • Evolutionary Economics: Schumpeterian competition and bounded rationality (routine and institutions) • Political Economy: institutions for negotiations and lobbyism linking markets and politics • European integration: “multi-level governance” Course Outline Spring 2008: Course web page http://www.econ.ku.dk/okojang/ Absalon: Upload your seminar papers here Section 1: Introduction and background 6.1 Aims of the course and definition of the subject. Audretsch (1993) . . 7.2 Seminar: State and market: University-industry partnerships. Section 2: Industrial economics and implications for policy Section 3: Innovation and Industrial Evolution Section 4: Innovation Policy