A Theoretical Concept of a Modern Industrial Policy

There is no definition of a modern industrial policy. However, since the crisis period a wide-ranging discussion has been underway among politicians, entrepreneurs and researchers on the concept of industrial policy. Some are in favour of a traditional approach to it. Nonetheless, due to the globalisation process, servitization, outsourcing, offshoring and changes in the global value chain, there is a need for further research into a new concept of a modern industrial policy. Therefore this chapter reviews and analyses the best practices of those government interventions aimed at improving the conditions for economic activities in the market while ensuring a fair and undisturbed workable competition. Moreover, on the basis of an analysis of the ‘smile curve’ concept we found that a modern industrial policy should focus on research and development activities, as well as innovation, which could be applied in both the pre- and post-fabrication stages. In order to meet the objective of the chapter, which is to conduct a review of the literature and to identify and define a modern industrial policy, we analysed many articles, chapters in books and scientific papers. The chapter has been prepared using original statements, phrases and combinations of words from over 40 original publications, supplemented by some of the author’s own critical remarks and opinions.