Industrial Policy (U.S.)

industrial policy

industrial policy, government-sponsored economic program in which the public and private sectors coordinate their efforts to develop new technologies and industries. Government provides the financial support and capital to the private sector by direct subsidies, tax credits, or government-run developmental banks. Industrial policy emphasizes cooperation between government, banks, private enterprise, and employees to strengthen the national economy. In the 1980s and 90s, industrial policies enjoyed some success in Germany and Japan. In the United States, such direct government involvement in business planning has traditionally been viewed with suspicion. However, the Advanced Technology Program, begun in 1990, has been instrumental in the research and development of promising, high-risk technologies. U.S. government subsidies can also be found in such areas as defense, energy, transportation, and home construction.

See R. Reich, The Work of Nations (1991).

The Columbia Encyclopedia, 6th ed. Copyright© 2014, The Columbia University Press.

Selected full-text books and articles on this topic

Industrial Policy American Style: From Hamilton to HDTV
Richard D. Bingham.
M.E. Sharpe, 1998
The Rise of the Corporate Commonwealth: U.S. Business and Public Policy in the Twentieth Century
Louis Galambos; Joseph Pratt.
Basic Books, 1988
Incentives and Political Economy
Jean-Jacques Laffont.
Oxford University Press, 2001
Librarian’s tip: Chap. 5 "Political Economy and Industrial Policy"
Revitalizing Antitrust in Its Second Century: Essays on Legal, Economic, and Political Policy
Harry First; Eleanor M. Fox; Robert Pitofsky.
Quorum Books, 1991
Librarian’s tip: Part V "Tempering Antitrust with Industrial Policy?"
Can America Compete?
Robert Z. Lawrence.
Brookings Institution, 1984
Librarian’s tip: Chap. Five "The Questionable Case for Selective Industrial Policies"
To Market, to Market, with What? Some Observations on Labor Market Rationales for Industrial Policy
Thomas, Celia; Friberg, Emil.
Journal of Economic Issues, Vol. 28, No. 2, June 1994
Readings on the Relation of Government to Property and Industry
Samuel P. Orth.
Arno Press, 1973
Balancing Acts: Technology, Finance, and the American Future
James K. Galbraith.
Basic Books, 1990
Military Spending and Industrial Decline: A Study of the American Machine Tool Industry
Anthony DiFilippo.
Greenwood Press, 1986
Responding to Defense Dependence: Policy Ideas and the American Defense Industrial Base
Erik R. Pages.
Praeger, 1996
Handbook of Global Economic Policy
Stuart S. Nagel.
Marcel Dekker, 2000
Librarian’s tip: Chap. 26 "U. S. Public Policy toward a Dynamic Increasing-Returns Industry"
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