Research On The Effectivity Of Industrial Policy

Industrial Policy is a public policy adopted by most of the market economy countries. However, whether the Industrial Policy is effective or not has been in dispute in economics circle for a long time. Under the historical background of economic globalization, it is necessary to take a second look and think over the Industrial Policy and its effectiveness, which has great significance to the formulation and implementation of a reasonable Industrial Policy and the promotion of the industry healthy development. In this paper, we mainly used the Enterprise Competence Theory to make a theoretical and empirical analysis of the Industrial Policy effectiveness.In this paper, we believed that the construction of the enterprise competence was the micro-foundation of the upgrade and optimization of industrial structure, the enhancement of industrial competitiveness and the realization of other Industrial Policy goals. The traditional Industry Policy was built under the premise of theoretical hypothesis of the New Classical Economics treating the enterprise as a homogeneous black box. Therefore, the design and implementation of the Industrial Policy was mainly limited to the market structural level like selecting winners and focusing on scale economy and industrial concentration, etc. It obviously neglected the investigation of micro-enterprises and their competence. As a result, the goals of the Industrial Policy became difficult to achieve and the effectiveness of the Industrial Policy had a greatly reduced quality.In this paper, we believed that, to enhance the effectiveness of the Industrial Policy, the traditional Industrial Policy should be reconstructed based on the Enterprise Competence Theory to set up a competency-oriented Industrial Policy. The industrial policy built on enterprise competence might be an effective one. At the same time, we believed that the effectiveness of the Industrial Policy was very limited. The Industrial policy provided only an external environment, not guaranteeing the success of industry, which was affected by other factors and even the occasionality rather than all the result of the Industrial Policy.In this paper, the implement of specific industrial policies at home and abroad were used as examples to make the relevant empirical studies to further reveal and verify what kinds of industrial policies played the effective roles and what kinds did not. In addition, some countermeasures and suggestions were put forward about the development of the future Industrial Policy.