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Series:   Elements in Evolutionary Economics

Industrial Policy

The Coevolution of Public and Private Sources of Finance for Important Emerging and Evolving Technologies

Published online by Cambridge University Press:  21 June 2022

Kenneth I. Carlaw  and
Richard G. Lipsey
Kenneth I. Carlaw
Affiliation:
University of British Columbia, Okanagan
Richard G. Lipsey
Affiliation:
Simon Fraser University, British Columbia

Summary

Dismissing industrial policy because 'governments cannot pick winners' is counter-productive. This Element studying selected major innovations illustrates the fact that virtually all major new technologies have been developed by a synergetic cooperation between the public and the private sectors, each doing what it can do best. By examining how R&D is financed, rather than where it takes place, the authors show that the role of the public sector is much more pronounced than is often thought. The nature of the cooperation − who does what − varies with the nature of each innovation so that simple, one-size-fits-all, rules about what each sector should do are suspect. These results are particularly important because they challenge the scepticism in the United states and elsewhere about the importance of industrial policy, a scepticism that threatens to undermine the long-term, and necessary cooperation, between the public and private sectors in promoting growth-inducing innovations.
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Keywords

industrial policycoevolutionpublic financepicking winnersinnovationtechnology
Type
Element
Information
Series: Elements in Evolutionary Economics
Online ISBN: 9781009227490
Publisher: Cambridge University Press
Print publication: 14 July 2022

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