Some Remarks on the Resurrection of Industrial Policy: New Integrated Policy Concept or Just Old Wine in New Tubes?

Systemic Industrial and Innovation Policy as defined by Aiginger (2007, 2012, 2013) is a very well developed theoretical framework for "real world" industrial policy. SIIP differs decisively from policies of the past, and has been receiving a real-world impetus from both the EU 2020 and the EU Internal Market Strategy. It is designed as the complementary policy to globalisation, increasing its benefits and empowering potential losers. SIIP supports basic education, training and entrepreneurship in developing countries, promotes FDI and exports in catching-up economies and merges with innovation strategies, environmental protection and cluster policy and dynamic competitiveness in high income countries. Its underlying concept goes beyond combating market failures, as it builds on economic laws, comparative and competitive advantages and changing specialisation patterns. It takes into account limited knowledge on the part of both policy makers and companies, mutual learning and co-operation between firms, institutions and government.