Global state-owned enterprises in the 21st century: Rethinking their contribution to structural change, innovation, and public policy

Abstract

In the 21st century, State-Owned Enterprises (SOEs) reemerged as key players in strategic sectors, showing a renewed intention to contribute to relevant economic and societal objectives, including structural economic change, innovation, internationalisation, and industrialisation. This special issue explores the revival of SOEs in the last two decades, by identifying their specificities as compared to traditional SOEs of the 20th century. It finds that the new political-economic context has changed the mission, mandate, governance, ownership structure of SOEs. The 21st century has witnessed the rise of some emerging economies as major industrial competitors, and a process of increasing market globalisation. In addition, the transition from a unipolar to a multipolar international order is increasing political rivalry among States, which is reflected in the increasing competition in strategic sectors such as natural resources, high technologies, and control of infrastructure and trade routes. SOEs have evolved in the 21st century to suit these challenges by becoming policy-driven but also efficient and competitive. In fact, they are increasingly investing in strategic sectors, while at the same time relying on models of corporate governance that ensure operational efficiency. This model has allowed the presence of private shareholders alongside the State, and the need for SOEs’ industrial strategies to reconcile both public and private objectives. To address this theme, the special issue has selected studies on contemporary SOEs of both advanced and emerging economies – including China, Indonesia, Italy, Singapore, Vietnam – operating in strategic sectors – such as energy, transport, infrastructure and logistics, banking and high-tech. The special issue comprises both quantitative and qualitative studies that shed light on the nexus between changes in corporate governance and industrial strategies at different stages of economic development and political contexts.