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Conceptualization, relationship and trends between

Innovation, Competitiveness and Development

INDUSTRIAL POLICY BEYOND THE CRISIS

Patrizio Bianchi*^ SandrineLabory*

*University of Ferrara and^Regione Emilia Romagna Government

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PATRIZIO BIANCHI SANDRINE LABORY

INDUSTRIAL POLICY AFTER CRISIS:SEIZING THE FUTURE

EDWARD ELGAR PUBLISHER

LONDON, 2011 forthcoming

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The world crisis is not only the dramatic effect of the financial collapse, but itis the structural readjustmentafter the end of Bilateral Equilibriumandstarting of Globalization

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Berlin Wall

Fall

Doha Agreement

Twin Towers Attack

LehmanBrothersFailure

Euro

Since the end of WWII, the world GNP growth was leaded by the developedcountries; after the decade of structural readjustment following the collapse of

Planned Economies, the world dynamics is leaded byother major economies

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After the political crisis of the late 1980s and the depression of the late 1990s,

China is controlling quite well the present world crisis. Brasil has a differentcrisisprofile, but it is still controlling the crisis

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The worldwide perspective of development is based on the low growth of

mature economies and on differentiated increases in the rates of growth forthe emerging economies.

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In this context it is necessary to redefinethe basic concept of development andthe instrument to support economic and

social growth

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The recent debate on developmentand the experiences of European

policy making have stressed two basicconcepts to analyse economicdynamics and structural change

INNOVATIONTERRITORY

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innovation

territory

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These two concepts are necessary but notsufficient to define the new idea of

development

We introduce the two concepts of

ENTITLEMENTS and PROVISIONS

ENTITLEMENTSPROVISIONS

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innovation

territory

entitlements provisions

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innovation

territory

entitlements provisions

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innovation

territory

entitlements provisions

Policy lines

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innovation

territory

entitlements provisions

INNOVATIONPOLICIES

STRUCTURALPOLICIES

WELFAREPOLICIES

EDUCATIONPOLICIES

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innovation

territory

entitlements provisions

INNOVATIONPOLICIES

STRUCTURAL

POLICIES

WELFARE

POLICIES

EDUCATIONPOLICIES

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innovation

territory

entitlements provisions

INNOVATIONPOLICIES

STRUCTURAL

POLICIES

WELFARE

POLICIES

EDUCATIONPOLICIES

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INNOVATION

TERRITORY

ENTITLEMENTS

PROVISIONS

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INNOVATION

TERRITORY

ENTITLEMENTS

PROVISIONS

THE CASE OFCHINA

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INNOVATION

TERRITORY

ENTITLEMENTS

PROVISIONS

THE CASE OFIRELAND

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INNOVATION

TERRITORY

ENTITLEMENTS

PROVISIONS

THE CASE OFSOUTH AFRICA

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INNOVATION

TERRITORY

ENTITLEMENTS

PROVISIONS

THE CASE OF ITALY

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INNOVATION

TERRITORY

ENTITLEMENTS

PROVISIONS

FINLAND AND BRASILCASES

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The new industrial policies is a vision of

the future

Different visions are possible, but eachchoice involves opportunities and risks

There is a coherence issue in defining thevision and in making the specific policies

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INNOVATION

TERRITORY

ENTITLEMENTS

PROVISIONS

Policymaking is

matter ofcomplexity

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INNOVATION

TERRITORY

ENTITLEMENTS

PROVISIONS

The state in theglobalization era is a

complex interactionof independentauthorities

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Coherence between policy actions andbetween policy levels

Requires policy-makers to have broad view ofthe economic system in which the particulardevelopment problem arises (holistic approach)

This in turn requires going back to the basics ofproduction organisation (to understand

complexity of the economic system and identifyappropriate gears of development)

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Regional government

National government

International bodies and

regulations

European Commission

Consistency of actions among thedifferent policy makers

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Which is the goal of policymaking?

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Which is the goal?

growth

development

Social happiness

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Rethinking industrial policies todaymeans to redefine the basic concepts ofcollective actions and to put themin a

dynamic perspective