Economic structure, power and institutions: A conceptual framework for analysing the historical transformation of US industrial strategy

Abstract

An industrial strategy emerges from possibilities for structural change, that depend on material constraints and opportunities afforded by economic structure, the distribution of power in society and the institutional arrangements organized at the political level. Building on a structural political economy perspective, this article develops a structure–power–institutions conceptual framework to describe how economic structure, the distribution of power, and institutions interact through a ‘circular process,’ which is useful for analysing the historical transformation of industrial strategy. In this framework, an industrial strategy refers to the institutional arrangements through which the government manages emerging conflicts or agreements between different powers and influences structural change. As an illustrative case study, the structure–power–institutions framework is applied to analyse the historical transformation of US industrial strategy from the era of Alexander Hamilton to that of Donald Trump.