New Open Economy Industrial Policy : Making Choices without Picking Winners
This note starts from the premise that policy makers invariably make mistakes, both intentional and unintentional. That requires shifting the focus from one-time choice of winners (sectors, industries, firms, and other organizations) to the process...
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| Format: | Brief |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2011/09/16359423/new-open-economy-industrial-policy-making-choices-without-picking-winners http://hdl.handle.net/10986/11057 |
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okr-10986-110572021-04-23T14:02:53Z New Open Economy Industrial Policy : Making Choices without Picking Winners Kuznetsov, Yevgeny Sabel, Charles ACCOUNTING ACTIVISM BANK POLICY BENCHMARKING BIOTECHNOLOGY BUSINESS DEVELOPMENT BUSINESS PLAN BUSINESSES BUYERS CALL CENTERS CAPABILITIES CAPABILITY CAPACITY BUILDING CAPACITY-BUILDING CHECKS COLLABORATION COLLECTIVE ACTION COLLECTIVE ACTION PROBLEM COMPETITIVENESS CORPORATE PROFITS CORRUPT DEBT DEVELOPING COUNTRIES DEVELOPMENT AGENCY DEVELOPMENT BANK DIRECTED CREDIT DOMAIN DOMAINS DOMESTIC BANKS ECONOMIC ACTIVITIES ECONOMIC ACTIVITY ECONOMIC ORDER ENDOGENOUS VARIABLES ENGINEERS EQUIPMENT EXPORTS FINANCIAL MANAGEMENT FINANCIAL MARKETS FOREIGN DIRECT INVESTMENT GLOBAL SUPPLY CHAINS GOVERNMENT POLICIES INDUSTRIAL DEVELOPMENT INDUSTRIAL TECHNOLOGY INFORMATION TECHNOLOGY INITIATIVE INNOVATION INSTITUTIONAL FRAMEWORK INSTRUMENT INTERNATIONAL INVESTMENT INVESTMENT CLIMATE KICKBACKS LEARNING MARKET FAILURES MEDIUM ENTERPRISES MINISTER MINISTERS MULTINATIONAL MULTINATIONALS NETWORKS OPEN ECONOMIES OPEN ECONOMY POLITICAL ECONOMY POLITICIANS PORTFOLIO PRIVATE SECTOR PRIVATE SECTORS PROGRAMS PUBLIC FUNDS PUBLIC GOOD PUBLIC MONEY PUBLIC OFFICIALS R&D REGULATORY AUTHORITIES REGULATORY ENVIRONMENT REGULATORY REFORM RELIABILITY REMEDY RENT SEEKING RESULT RESULTS RETURNS SEARCH SEARCHES SEMICONDUCTOR SILICON STOCK EXCHANGE SUPPLY CHAIN SUPPLY NETWORKS TAX TAX EXEMPTIONS TAX INCENTIVES TECHNICAL ASSISTANCE TECHNICAL ISSUES TECHNICAL KNOWLEDGE TECHNICAL TRAINING TECHNICIANS TRAINING SYSTEMS TRANSPARENCY USERS VALUE ADDED VIRUS WEB WEB SITE This note starts from the premise that policy makers invariably make mistakes, both intentional and unintentional. That requires shifting the focus from one-time choice of winners (sectors, industries, firms, and other organizations) to the process of error detection and error correction of the choices (with corresponding attention to governance). This note shifts the debate on government activism in support of globally competitive industries from a choice of picking/dropping winners to a process of step-by-step transformation of private and public sectors. In such a process, new industrial policy creates its own context for efficient design and implementation in two ways. First, by shifting the focus of analysis and institutional design from private sector to a new public sector capable of providing customized and flexible public goods and enabling private agents to compete globally. The key concept here is heterogeneity (discretionary differences) of institutions: it is almost always possible to find some that are working. The issue is using the ones that work to improve those that don't. This hypothesis assumes that there are nearly always opportunities for development in a given economy, and that some actors, private and public, begin to take advantage of them. 2012-08-13T14:00:58Z 2012-08-13T14:00:58Z 2011-09 http://documents.worldbank.org/curated/en/2011/09/16359423/new-open-economy-industrial-policy-making-choices-without-picking-winners http://hdl.handle.net/10986/11057 English Prem Notes; No. 161 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research :: Brief Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCOUNTING ACTIVISM BANK POLICY BENCHMARKING BIOTECHNOLOGY BUSINESS DEVELOPMENT BUSINESS PLAN BUSINESSES BUYERS CALL CENTERS CAPABILITIES CAPABILITY CAPACITY BUILDING CAPACITY-BUILDING CHECKS COLLABORATION COLLECTIVE ACTION COLLECTIVE ACTION PROBLEM COMPETITIVENESS CORPORATE PROFITS CORRUPT DEBT DEVELOPING COUNTRIES DEVELOPMENT AGENCY DEVELOPMENT BANK DIRECTED CREDIT DOMAIN DOMAINS DOMESTIC BANKS ECONOMIC ACTIVITIES ECONOMIC ACTIVITY ECONOMIC ORDER ENDOGENOUS VARIABLES ENGINEERS EQUIPMENT EXPORTS FINANCIAL MANAGEMENT FINANCIAL MARKETS FOREIGN DIRECT INVESTMENT GLOBAL SUPPLY CHAINS GOVERNMENT POLICIES INDUSTRIAL DEVELOPMENT INDUSTRIAL TECHNOLOGY INFORMATION TECHNOLOGY INITIATIVE INNOVATION INSTITUTIONAL FRAMEWORK INSTRUMENT INTERNATIONAL INVESTMENT INVESTMENT CLIMATE KICKBACKS LEARNING MARKET FAILURES MEDIUM ENTERPRISES MINISTER MINISTERS MULTINATIONAL MULTINATIONALS NETWORKS OPEN ECONOMIES OPEN ECONOMY POLITICAL ECONOMY POLITICIANS PORTFOLIO PRIVATE SECTOR PRIVATE SECTORS PROGRAMS PUBLIC FUNDS PUBLIC GOOD PUBLIC MONEY PUBLIC OFFICIALS R&D REGULATORY AUTHORITIES REGULATORY ENVIRONMENT REGULATORY REFORM RELIABILITY REMEDY RENT SEEKING RESULT RESULTS RETURNS SEARCH SEARCHES SEMICONDUCTOR SILICON STOCK EXCHANGE SUPPLY CHAIN SUPPLY NETWORKS TAX TAX EXEMPTIONS TAX INCENTIVES TECHNICAL ASSISTANCE TECHNICAL ISSUES TECHNICAL KNOWLEDGE TECHNICAL TRAINING TECHNICIANS TRAINING SYSTEMS TRANSPARENCY USERS VALUE ADDED VIRUS WEB WEB SITE |
| spellingShingle |
ACCOUNTING ACTIVISM BANK POLICY BENCHMARKING BIOTECHNOLOGY BUSINESS DEVELOPMENT BUSINESS PLAN BUSINESSES BUYERS CALL CENTERS CAPABILITIES CAPABILITY CAPACITY BUILDING CAPACITY-BUILDING CHECKS COLLABORATION COLLECTIVE ACTION COLLECTIVE ACTION PROBLEM COMPETITIVENESS CORPORATE PROFITS CORRUPT DEBT DEVELOPING COUNTRIES DEVELOPMENT AGENCY DEVELOPMENT BANK DIRECTED CREDIT DOMAIN DOMAINS DOMESTIC BANKS ECONOMIC ACTIVITIES ECONOMIC ACTIVITY ECONOMIC ORDER ENDOGENOUS VARIABLES ENGINEERS EQUIPMENT EXPORTS FINANCIAL MANAGEMENT FINANCIAL MARKETS FOREIGN DIRECT INVESTMENT GLOBAL SUPPLY CHAINS GOVERNMENT POLICIES INDUSTRIAL DEVELOPMENT INDUSTRIAL TECHNOLOGY INFORMATION TECHNOLOGY INITIATIVE INNOVATION INSTITUTIONAL FRAMEWORK INSTRUMENT INTERNATIONAL INVESTMENT INVESTMENT CLIMATE KICKBACKS LEARNING MARKET FAILURES MEDIUM ENTERPRISES MINISTER MINISTERS MULTINATIONAL MULTINATIONALS NETWORKS OPEN ECONOMIES OPEN ECONOMY POLITICAL ECONOMY POLITICIANS PORTFOLIO PRIVATE SECTOR PRIVATE SECTORS PROGRAMS PUBLIC FUNDS PUBLIC GOOD PUBLIC MONEY PUBLIC OFFICIALS R&D REGULATORY AUTHORITIES REGULATORY ENVIRONMENT REGULATORY REFORM RELIABILITY REMEDY RENT SEEKING RESULT RESULTS RETURNS SEARCH SEARCHES SEMICONDUCTOR SILICON STOCK EXCHANGE SUPPLY CHAIN SUPPLY NETWORKS TAX TAX EXEMPTIONS TAX INCENTIVES TECHNICAL ASSISTANCE TECHNICAL ISSUES TECHNICAL KNOWLEDGE TECHNICAL TRAINING TECHNICIANS TRAINING SYSTEMS TRANSPARENCY USERS VALUE ADDED VIRUS WEB WEB SITE Kuznetsov, Yevgeny Sabel, Charles New Open Economy Industrial Policy : Making Choices without Picking Winners |
| relation |
Prem Notes; No. 161 |
| description |
This note starts from the premise that
policy makers invariably make mistakes, both intentional and
unintentional. That requires shifting the focus from
one-time choice of winners (sectors, industries, firms, and
other organizations) to the process of error detection and
error correction of the choices (with corresponding
attention to governance). This note shifts the debate on
government activism in support of globally competitive
industries from a choice of picking/dropping winners to a
process of step-by-step transformation of private and public
sectors. In such a process, new industrial policy creates
its own context for efficient design and implementation in
two ways. First, by shifting the focus of analysis and
institutional design from private sector to a new public
sector capable of providing customized and flexible public
goods and enabling private agents to compete globally. The
key concept here is heterogeneity (discretionary
differences) of institutions: it is almost always possible
to find some that are working. The issue is using the ones
that work to improve those that don't. This hypothesis
assumes that there are nearly always opportunities for
development in a given economy, and that some actors,
private and public, begin to take advantage of them. |
| format |
Publications & Research :: Brief |
| author |
Kuznetsov, Yevgeny Sabel, Charles |
| author_facet |
Kuznetsov, Yevgeny Sabel, Charles |
| author_sort |
Kuznetsov, Yevgeny |
| title |
New Open Economy Industrial Policy : Making Choices without Picking Winners |
| title_short |
New Open Economy Industrial Policy : Making Choices without Picking Winners |
| title_full |
New Open Economy Industrial Policy : Making Choices without Picking Winners |
| title_fullStr |
New Open Economy Industrial Policy : Making Choices without Picking Winners |
| title_full_unstemmed |
New Open Economy Industrial Policy : Making Choices without Picking Winners |
| title_sort |
new open economy industrial policy : making choices without picking winners |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2011/09/16359423/new-open-economy-industrial-policy-making-choices-without-picking-winners http://hdl.handle.net/10986/11057 |
| _version_ |
1764415364139057152 |