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Industrial and Innovation Policy Aims of the course and definition of the subject Course web page

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1 Industrial and Innovation Policy Aims of the course and definition of the subject Course web page http://www.econ.ku.dk/okojang/

2 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

3 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

4 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”

5 Commodity and Geographical Composition of UK Trade Per cent YearExport Manu- factures Import Manu- factures Export to Europe Import from Europe 1913 1992 75.5 81.9 20.2 78.4 39.5 63.8 44.6 63.7 Source: P Krugman, Brookings Paper on Economic Activity 1:1995

6 Supertrading Economies: CountryExport, percentage of GDP, 1990 Singapore174 Hong Kong144 Malaysia78 Belgium70 Ireland64 The Netherlands52 Source: P Krugman, Brookings Paper on Economic Activity 1:1995

7 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”

8 Course Outline Spring 2008: Course web page http://www.econ.ku.dk/okojang/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

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