Employment Conditions, Structural Change, and Industrial Policy in Neoliberal India: An Enterprise-level Analysis of Employment Status, 2004–2024

In conclusion, the prevalence of industrial policies in the world is noted, not only for catch-up by late-industrialisers but also developed economies responding to the challenges of the covid epidemic, global warming, wealth inequality and low productivity growth, and geo-strategic rivalries. But the successful implementation of industrial policy is difficult and requires a number of conditions that this case-study of Turkey highlights. The most important is the institutional context. Enhanced state capacity, rule of law, political ownership, and a responsive business sector are needed to avoid ‘state capture’ or ‘market capture’ of industrial policies. Favourable global conditions and macroeconomic stability are the other two factors supporting industrial policy effectiveness. In the case of Turkey – as in other middle-income economies such as Brazil, macroeconomic instability and uncertainty undermined the long-term investments for tech-upgrade, with the role of incentives and other industrial policy measures reduced to Keynesian counter-crisis policies. Finally, there is a warning on protectionism in many recent industrial policies – especially in advanced economies, and a reminder that a major factor in the successful post-WWII industrialisation of Asian economies such as South Korea was their combination of elements of (temporary) protectionism with export orientation.

Traditional Japanese industrial policies have, since the 1990s, evolved towards knowledge-based industrial policies. In this chapter, we first explain the salient features of both the traditional and knowledge-based industrial policies and compare them from the perspective of the role of the government. Knowledge-based industrial policies emphasize the role of the government as a facilitator and coordinator rather than a guide. Accordingly, the policy instruments differ as well. The changing global economic environment in the era of the knowledge economy and the emergence of new regional rivals, Korea and China, also led to significant changes in policy design and corporate governance styles as well. On the other hand, we argue that there is still an influence of the developmental state practices in policy-making. To present a full account of the recent industrial policies in Japan, we present the recent changes in the policy-making process as well as the economic mindset with reference to the official documents on industrial policies.

Industrial policies has been viewed as one of the fundamental and the most significant factor in promoting the development of entrepreneurship in any economy. Therefore, this study is aimed at achieving the nexus between industrial policies and entrepreneurial development in Nigeria, with emphasis on some selected north eastern part of the country which consist of Adamawa state, Gombe state and Taraba state. Using a primary source of generating data and chi square, distributive and percentages methods of analysis were employed among others. From the findings however implies that there is positive response from quite number of respondent that some of the government industrial policies aid at improving entrepreneurial activities in the region if proper implementation is considered. The policy implications of the study suggests that the current industrial policies plays an important role in creating a modern way of setting up a standard business and there is greater motivation towards effectiveness on the recent industrial policies within the region

After a long period of high economic growth and industrialization, the Chinese economy has recently entered a period of relatively low economic growth. Behind the past remarkable performance lies the government’s ambitious and interventionist industrial policies. To ensure a swift transition and avoid falling into the middle-income trap, the Chinese government has recently devised a new industrial policy called “Made in China 2025.” This strategy envisages that China will join the ranks of industrialized countries through a structural change toward high-tech industries and by nurturing domestic production and absorption of “smart manufacturing” technologies. This new strategy favors domestic firms against foreign competitors and imposes strict domestic content requirements. In the past, these were essential characteristics of traditional industrial policies in East Asia (such as in Japan, Korea, and Taiwan). But the scale of the Chinese economy ensures that such a policy will have a significant impact on the world economy. This chapter overviews and evaluates contemporary industrial policies in China in conjunction with criticism from some advanced countries, which recently led to trade frictions. It sets up a theoretical and analytical framework to analyze industrial policies and apply it to the Chinese case.

In this article we ask a series of related research questions concerning China's recent industrial policies, particularly the 10th and 11th five‐year economic policy plans. Our questions go to the nature of China's long‐term competitiveness of its national champions, and to what extent Chinese government policies are evolving to domestic protectionism that adversely affects foreign invested enterprises' (FIEs) competitive position in the Chinese economy. We thus evaluate the nature of the five‐year economic policy plans, their adverse impact on FIEs operating in China, and the rise of designated Chinese national champions (in the 11th five‐year economic policy plan) to compete with major FIEs on a global scale. However, we suggest that the role of the Chinese government's recent industrial policy, when compared to Michael Porter's “Diamond of National Competitive Advantage” recommended government policy approaches, may not augur well in the long‐term for China's national champions. © 2013 Wiley Periodicals, Inc.

This study examines recent industrial policies in Brazil, especially regarding the use of public procurement to stimulate the growth of domestic industries. It adds to the literature on development studies by presenting data on the recent Brazilian policy of offering margins of preference to domestic firms in public tenders and by conducting an initial analysis of the outcomes and prospects of such a policy. In addition, this paper explores the pattern of Japanese state intervention in the post-war period, which resulted in high levels of industrial and economic growth, in order to make a comparison with current Brazilian efforts to promote industrial development. This study identifies the lack of a clear focus on strategic industrial sectors and the absence of sector-specific measures for these industries as major constraints in recent Brazilian industrial policies. On top of that, it argues that the level of information exchange between the government and private firms in Brazil is insufficient to promote steady industrial growth and transformation in the long run.

In the context of the UK economy’s slow and unbalanced growth, this paper discusses the degree to which recent Conservative Governments in the UK have moved towards the adoption of a strategic and coherent set of industrial policies to enhance economic performance across the country. It starts by outlining the priorities and principles of new forms of industrial strategy which emphasises the importance of cross-sectoral goals, intensive dialogue between government and the private sector, co-ordination between different policies and levels of government, directions to address societal and environmental challenges and the role of place-based policy making. The paper discusses the degree to which these principles have shaped, or been largely absent from, recent industrial policy development in the UK and particularly the interface between industrial and regional policies. It discusses the May Government’s move to set up an Industrial Strategy with a place ‘pillar’ and the influence of a mission approach. It then reviews the Johnson’s Government’s ‘Plan for Growth’ industrial policy agenda, focussing on the recent Levelling Up White Paper and examines how far and in what ways it has embedded these reforming principles. It finds that despite reflecting some of these principles in its rhetoric, the current government programme has substituted innovation and infrastructure policies for an actual industrial strategy, and continues to rely mainly on a top-down and technologically driven type of approach. The agenda lacks the capacity to deliver its levelling up goals due to inadequate funding, an incomplete devolution agenda and insufficiently developed place-based capacities and policies. Future development needs to move the principles from rhetoric into industrial policy direction and design, and to remedy the continuing lack of local and regional collaboration and co-ordination.

O artigo analisa de forma pioneira o grau de incerteza dos projetos do setor farmacêutico que receberam recursos de subvenção econômica da FINEP entre 2007 e 2014. Foram analisados 87 projetos de 60 empresas contemplados em 8 editais de subvenção. Os dados indicam um aumento do valor médio por projeto, bem como oscilações ao longo do período no aporte de recursos para projetos deste setor, ainda que seja um setor sistematicamente contemplado pelas recentes políticas industriais. A partir da taxonomia de incerteza e tipos de inovação de Freeman e Soete,52 projetos do setor farmacêutico foram classificados, caracterizando-se como um estudo multicaso. Esta análise permitiu inferir que, na média, os projetos apoiados envolvem incerteza moderada, apontando para a importância de políticas industriais sistêmicas que incentivem que as empresas brasileiras farmacêuticas avancem no desenvolvimento de atividades de inovação com maior grau de incerteza.

This paper focuses on recent industrial policy changes in the Chinese rare earth industry, and attempts to show how the Chinese central government is shifting strategies for this important resource industry. Since the late 2000s, the Chinese central government has pursued consolidation of the highly fragmented rare earth industry into one dominated by large state-owned enterprise (SOE) groups under the control of the central government. This is far from liberalization and marketization as most media coverage and scholars have suggested. The Chinese central government is pursuing the centralization of the industry through nation-wide consolidation, which can make its intervention more effective and enhance the predominance of large SOEs under the name of efficiency.

Recent changes in trade policies in developed countries are sparking new interest in industrial policy programs. Among developing countries, failures against expected outcomes of structural adjustment programs in Latin America and Africa versus the perceived development successes of East Asia generate lessons about how different configurations of industrial policy can be more effective. This overview paper presents a definition of industrial policy and surveys the arguments for and against industrial policy. In the Philippine context, the consideration of industrial policy is a contravention of the state project since the 1980s to rely on an open trade regime as a key pillar of a development strategy. In the last decade, however, numerous legislative initiatives have sprung up to support industrial policy interventions. The papers in this volume represent updated thinking about industrial policy challenges and opportunities as they apply to the Philippine situation

Since the global financial crisis, industrial policy is back on the agenda in developing economies after a long break. The renewed interest in the industrial policy manifested itself in the discussions on the new directions for policymaking. A crucial aspect of the recent industrial policies is technology policies, in which the developing policies face the trade-off between imitation and innovation. In this study, we examine the association between industrial policy and state capacity based on a theoretical model. We elaborate on the successful interventionist industrial policies of the East Asian economies in the past in conjunction with state capacity and technology policies. As evidence from Korea, Singapore and Taiwan shows simultaneous implementation of imitation and innovation policies is possible. Recent experience in China further supports this conclusion. The results indicate that state capacity has played an important role in the success of East Asian industrial policies.

ABSTRACTConditionality was a central concern in the development literature of the 1990s. With the significant expansion of targeted public support to private firms since the Great Financial Crisis, the issue of conditionality has once again become a focal point in industrial policy debates. Despite the growing interest in the concept, the existing literature lacks a systematic conceptualization of conditionality within the context of industrial policy and does not outline the political factors that enable state actors to introduce it. This article addresses this gap by critically reviewing the existing literature and providing a systematic political economy of conditionality. We offer an overview of the literature on conditionality, examining different industries, historical periods, and national contexts. In doing so, we make three key contributions to the debate on industrial policy and regulatory instruments more broadly. First, we distinguish between two broad approaches to encoding conditionality in industrial policy: hard‐coding and soft‐coding. Next, we map the coalitional, institutional, ideational, and global contextual factors that facilitate conditionality. Finally, we present two vignettes of recent industrial policy initiatives in the European Union and the United States as illustrative cases. This conceptual exercise, intended to lay the foundation for future causal research on conditionality, demonstrates that the presence of conditionality is not merely a technical matter of political design but is instead shaped by configurations of political economy factors.

Проблема гармонизации промышленной и торговой политики является актуальной для каждой из стран, в особенности для стран, экономическое положение которых зависит от добычи нефти. Усилия Исламской Республики Иран в большей степени направлены на нефтяную промышленность, что препятствует формированию благоприятной среды для функционирования экономических субъектов, задействованных, например, в отраслях машиностроения, текстильной промышленности и торговле. Таким образом, на основе выполненного анализа научных работ, нормативно-правовых и иных документов Ирана выявлена необходимость формирования концептуальной модели гармонизации промышленности и торговли в Республике. Целью исследования является разработка концептуальной модели гармонизации отраслевых интересов в государственной политике Ирана (на примере торговой и промышленной политики). Объектом исследования является социально-экономическая система Ирана. Источниками информации послужили официальные документы и отчеты, опубликованные Министерством промышленности, горнодобывающей промышленности и торговли Ирана, Всемирным банком, Статистическим центром Ирана и Организацией планирования и бюджета Ирана. Анализ статистических данных позволил выявить дихотомию на промышленных предприятиях Республики, а также сильную зависимость экономики от нефтяных доходов страны. Раскрыты основные тенденции развития промышленного сектора на основе Протокола заседания коллегии Министерства промышленности, горнодобывающей промышленности и торговли Ирана в 2019 г. В результате исследования предложена концептуальная модель гармонизации, в состав которой входят базовые элементы, влияющие на формирование и реализацию торговой и промышленной политики, а также предопределяющие набор и содержание элементов других уровней модели; цель, компоненты и условия, обусловливающие эффективное функционирование модели. Сделан вывод: достижение гармонизации на примере промышленности и торговли осуществимо в условиях применения концептуального подхода, подразумевающего тесную взаимосвязь объектов (организации в сфере промышленности и торговли), принципов (отражающих менталитет населения Ирана и его государственную идеологию), компонентов (содержательный, методический, организационный, оценочно-результативный) и условий (внутренние и внешние) модели. Установлено, что частный сектор не принимает участия в формировании промышленной политики Республики. Выявлена нецелесообразность современной торговой политики, направленной на реализацию нефтяной базы. Таким образом, необходима трансформация действующих промышленных и торговых программ развития. The problem of harmonization of industrial and trade policies is relevant for each country, especially for countries whose economic situation depends on oil production. The efforts of the State of Iran are more focused on the oil industry, which prevents the formation of a favorable environment for the functioning of economic entities in other spheres, for example, in the fields of mechanical engineering, textile industry and trade. Thus, on the basis of the analysis of scientific works, regulatory and other documents of the Islamic Republic of Iran, the need for the formation of a conceptual model for the harmonization of industry and trade in the Republic is revealed. The aim of the study is to develop a conceptual model of harmonization of sectoral interests in the state policy of Iran (on the example of trade and industrial policy). The object of the study is the socio-economic system of Iran. The sources of information were official documents and reports published by the Ministry of Industry, Mining and Trade of Iran, the World Bank, the Statistical Center of Iran and the Planning and Budget Organization of Iran. The analysis of statistical data revealed a dichotomy in the industrial enterprises of the Republic, as well as a strong dependence of the economy on the country’s oil revenues. The main trends in the development of the industrial sector are revealed on the basis of the Minutes of the meeting of the Board of the Ministry of Industry, Mining and Trade of Iran in 2019. As a result of the study, a conceptual model of harmonization is proposed, which includes basic elements that affect the formation and implementation of trade and industrial policy, as well as determining the set and content of elements of other levels of the model; the goal, components and conditions that determine the effective functioning of the model. It is concluded that achieving harmonization on the example of industry and trade is feasible in the context of applying a conceptual approach that implies a close relationship between objects (organizations in the field of industry and trade), principles (reflecting the mentality of the Iranian population and its state ideology), components (content, methodological, organizational, evaluative and effective) and conditions (internal and external) of the model. It is established that the private sector does not take part in the formation of the industrial policy of the Republic. The inexpediency of the modern trade policy aimed at the implementation of the oil base is revealed. Thus, it is necessary to transform the existing industrial and trade development programs.

The unbalanced development within the Chinese industries may bring the imbalance of income among different groups. What kind of role does industrial policy play, namely whether the implementation of China industrial policy brings the wage gap between enterprises? This paper considers subsidies as the breakthrough point, introduces industrial policy factor into a heterogeneous enterprise model, and theoretically decomposes the impact of industrial policy on enterprise wages into two mechanisms, namely subsidy transfer effect and competition effect. And it puts forward the following hypotheses: the enterprises spend part of policy subsidies on production, and now more wages paid are equivalent to direct fiscal subsidies; at the same time, enterprise wage level also depends on enterprise production efficiency, and industrial policy changes enterprise efficiency through promoting or inhibiting industrial competition, thereby having an indirect influence on enterprise wage level, namely competition effect. Next, this paper empirically checks above theoretical hypotheses by using the data of Chinese industrial enterprises above designated size from 1998 to 2007. Specifically, the control variables are gradually added, and the variable reflecting subsidy policy has always been a negative relationship with enterprise wage level. After controlling total factor productivity of enterprises, this relationship between subsidy policy and enterprise wage level becomes positive, while the impact of subsidies on total factor productivity of enterprises is negative. Then we can conclude that: negative competition effect resulting from China-style industrial policy through inhibiting enterprise efficiency exceeds positive subsidy transfer effect, finally leading to a reduction in enterprise wage level. This paper further explores the issue of a competition-friendly industrial policy based on Aghion et al.（2015）that shows the dispersion of government industrial policy coverage. Once industrial policy target is more extensive, the competitive effect of policy on enterprise wages will turn positive, and enterprise wage level will increase accordingly. These research conclusions help to understand the impact of industry policy on enterprise wages in the process of economic reform, enrich the related research of enterprise wages, and have enlightenment for deepening the reform: the unreasonable implementation of industrial policy has hindered the reform of basic wage system reform in China, and we can not bring some enterprises’ revenues to subsidize the other; the fairness of this behavior is questionable, and how to give priority to efficiency as well as equity needs to be weighed carefully and repeatedly by policy formulators. Subsidies for some enterprises can be converted into wage subsidies for skilled workers, which on the one hand, attract talents to enterprises and help enterprises to improve efficiency and on the other hand, avoid the negative effects resulting from direct subsidies for enterprises.

The article aims to discuss the practical problems and inconsistencies of industrial policy in Russia since 2000, to analyze positive and negative experiences, and to draw up some lessons which are essential for a new technology-industrial policy. The evolution of approaches to industrial policy in Russia is considered, which results particularly in convergence between innovation and industrial policies. Basic state interest groups are revealed, whose interaction determines the industrial policy design. The authors compare two recent significant industrial policies: in automotive industry and nanoindustry. On this basis, we highlight some prerequisites for successful policies. The following main lessons are drawn: First, global experience shows that the requirements for industrial policy and its opportunities change significantly with time. Such policies in any given country and at any particular point of time need new ideas and solutions; it is extremely difficult to replicate the success of different countries’ industrial policies. Second, examples of successful industrial policy typically aim to enter a foreign market, become globally competitive, and attract foreign investment. The implementation of industrial policy without definite and sufficient conditions for the free entry and exit of major players and without the participation of foreign partners is doomed to merely simulate progress, to have strong informational asymmetry, and to create antagonist images of what is actually happening in the economy in the eyes of the society and the public authorities. Third, the problem of correctly assessing the scientific and technological potential is of great importance for implementing technological-industrial policy. Numerous assessments appear to be unreliable since they do not take into account changes in business demand for technology. The tendency to use the legacy of past decades sometimes becomes a political problem, blocking new approaches and the development of international technology co-operation. Fourth, a negative attitude towards particular policies should not be regarded as a ‘taboo’ against studying related issues. Due to the fact that for a long time in Russia it has been as if ‘there were no kind of industrial policy’, the country now has a low quality of both industrial policy and research.