Industrial Policy For The Manufacturing Revolution

This book offers a critical reflection on the meaning and expected impact of the fourth industrial revolution, and its implications for industrial policy. Industrial revolutions are considered not only in terms of technological progress, but also in the context of the changing relationship between market and production dynamics, and the social and political conditions enabling the development of new technologies. Industrial Policy for the Manufacturing Revolution aims to increase our capacity to anticipate and adapt to the forthcoming structural changes. A concrete illustration of this industrial policy is provided through an experience of its implementation at regional level.

World-renowned economist Klaus Schwab, Founder and Executive Chairman of the World Economic Forum, explains that we have an opportunity to shape the fourth industrial revolu­tion, which will fundamentally alter how we live and work. Schwab argues that this revolution is different in scale, scope and complexity from any that have come before. Characterized by a range of new technologies that are fusing the physical, digital and biological worlds, the developments are affecting all disciplines, economies, industries and governments, and even challenging ideas about what it means to be human. Artificial intelligence is already all around us, from supercomputers, drones and virtual assistants to 3D printing, DNA sequencing, smart thermostats, wear­able sensors and microchips smaller than a grain of sand. But this is just the beginning: nanomaterials 200 times stronger than steel and a million times thinner than a strand of hair and the first transplant of a 3D printed liver are already in development. Imagine “smart factories” in which global systems of manu­facturing are coordinated virtually, or implantable mobile phones made of biosynthetic materials. The fourth industrial revolution, says Schwab, is more significant, and its ramifications more profound, than in any prior period of human history. He outlines the key technologies driving this revolution and discusses the major impacts expected on government, business, civil society and individu­als. Schwab also offers bold ideas on how to harness these changes and shape a better future—one in which technology empowers people rather than replaces them; progress serves society rather than disrupts it; and in which innovators respect moral and ethical boundaries rather than cross them. We all have the opportunity to contribute to developing new frame­works that advance progress.

This book argues that digital globalization is inducing deep and productive transformations, making industrial policy necessary in order to reorientate development towards inclusive and more sustainable growth. The book also demonstrates that industrialization remains an important development process for emerging countries. Regarding the future of jobs, the authors show how the substitution of labour in automation is not inevitable since technology is also complementary to human capital. Policymakers should pay more attention to the new skills that will be required. A particular concern is is the rapid change in technology and business compared to institutions which take time to adapt. Territories have an important role to play in order to speed-up institutional adaptation, providing they can act coherently with the other levels of government.

Industrial policy has long been regarded as a strategy to encourage sector-, industry-, or economy-wide development by the state. It has been central to competitiveness, catching up, and structural change in both advanced and developing countries. It has also been one of the most contested perspectives, reflecting ideologically inflected debates and shifts in prevailing ideas. There has lately been a renewed interest in industrial policy in academic circles and international policy dialogues, prompted by the weak outcomes of policies pursued by many developing countries under the direction of the Washington Consensus (and its descendants), the slow economic recovery of many advanced economies after the 2008 global financial crisis, and mounting anxieties about the national consequences of globalization. The Oxford Handbook of Industrial Policy presents a comprehensive review of and a novel approach to the conceptual and theoretical foundations of industrial policy. The Handbook also presents analytical perspectives on how industrial policy connects to broader issues of development strategy, macro-economic policies, infrastructure development, human capital, and political economy. By combining historical and theoretical perspectives, and integrating conceptual issues with empirical evidence drawn from advanced, emerging, and developing countries, The Handbook offers valuable lessons and policy insights to policymakers, practitioners and researchers on developing productive transformation, technological capabilities, and international competitiveness. It addresses pressing issues including climate change, the gendered dimensions of industrial policy, global governance, and technical change. Written by leading international thinkers on the subject, the volume pulls together different perspectives and schools of thought from neo-classical to structuralist development economists to discuss and highlight the adaptation of industrial policy in an ever-changing socio-economic and political landscape.

Highlights what national governments should know to properly conduct their industrial policies under the multilateral trading system.

Industrial policy, once relegated to resource allocation, technological improvements, and the modernization of industries, should be treated as a serious component of sustainability and developmental economics. A rich set of complimentary institutions, shared behavioral norms, and public policies have sustained economic growth from Britain's industrial revolution onwards. This volume revisits the role of industrial policy in the success of these strategies and what it can offer developed and developing economies today. Featuring essays from experts invested in the expansion of industrial policies, topics discussed include the most effective use of industrial policies in learning economies, development finance, and promoting investment in regional and global contexts. Also included are in-depth case studies of Japan and India's experience with industrial policy in the banking and private sector. One essay revisits the theoretical and conceptual foundations of industrial policy from a structural economics perspective and another describes the models, packages, and transformation cycles that constitute a variety of approaches to implementation. The collection concludes with industrial strategies for facilitating quality growth, realizing more sustainable manufacturing development, and encouraging countries to industrialize around their natural resources.

This book assesses developmental experience in different countries as well as British expansion following the industrial revolution from a developmental perspective. It explains why some nations are rich and others are poor, and discusses how manufacturing made economies flourish and spur economic development. It explains how today’s governments can design and implement industrial policy, and how they can determine economically strategic sectors to break out of Low and Middle Income Traps. Closely linked to global trade and (im)balances, industrialization was never an accident. Industrialization explains how some countries experience export-led growth and others import-led slowdowns. Many confuse industrialization with the construction of factory buildings rather than a capacity and skill building process through certain stages. Industrial policy helps countries advance through those stages. Explaining technical concepts in understandable terms, the book discusses the capacity and limits of the developmental state in industrialization and in general in economic development, demonstrating how picking-the-winner type focused industrial policy has worked in different countries. It also discusses how industrial policy and science, technology and innovation policies should be sequenced for best results.

"While much has been written about the industrial revolution," writes Lawrence Peskin, "we rarely read about industrial revolutionaries." This absence, he explains, reflects the preoccupation of both classical and Marxist economics with impersonal forces rather than with individuals. In Manufacturing Revolution Peskin deviates from both dominant paradigms by closely examining the words and deeds of individual Americans who made things in their own shops, who met in small groups to promote industrialization, and who, on the local level, strove for economic independence. In speeches, petitions, books, newspaper articles, club meetings, and coffee–house conversations, they fervently discussed the need for large-scale American manufacturing a half-century before the Boston Associates built their first factory. Peskin shows how these economic pioneers launched a discourse that continued for decades, linking industrialization to the cause of independence and guiding the new nation along the path of economic ambition. Based upon extensive research in both manuscript and printed sources from the period between 1760 and 1830, this book will be of interest to historians of the early republic and economic historians as well as to students of technology, business, and industry.

This volume is the result of the 2012 International Economic Association's series of roundtables on the theme of Industrial Policy. The first, 'New Thinking on Industrial Policy,' was hosted by the World Bank in Washington, D.C, and the second, 'New Thinking on Industrial Policy: Implications for Africa,' was held in Pretoria, South Africa.

Urban re-industrialisation could be seen as a method of increasing business effectiveness in the context of a politically stimulated 'green economy'; it could also be seen as a nostalgic mutation of a creative-class concept, focused on 3D printing, 'boutique manufacturing' and crafts. These two notions place urban re-industrialisation within the context of the current neoliberal economic regime and urban development based on property and land speculation. Could urban re-industrialisation be a more radical idea? Could urban re-industrialization be imagined as a progressive socio-political and economic project, aimed at creating an inclusive and democratic society based on cooperation and a symbiosis that goes way beyond the current model of a neoliberal city?In January 2012, against the backdrop of the 2008 financial crisis, Krzysztof Nawratek published a text in opposition to the fantasy of a 'cappuccino city, ' arguing that the post-industrial city is a fiction, and that it should be replaced by 'Industrial City 2.0.' Industrial City 2.0 is an attempt to see a post-socialist and post-industrial city from another perspective, a kind of negative of the modernist industrial city. If, for logistical reasons and because of a concern for the health of residents, modernism tried to separate different functions from each other (mainly industry from residential areas), Industrial City 2.0 is based on the ideas of coexistence, proximity, and synergy. The essays collected here envision the possibilities (as well as the possible perils) of such a scheme.TABLE OF CONTENTS //Introduction: Urban Re-industrialization as a Political Project (Krzysztof Nawratek)PART 1: Why Should We Do It? / Re-industrialisation as Progressive Urbanism: Why and How? (Michael Edwards & Myfanwy Taylor) - Mechanisms of Loss (Karol Kurnicki) - The Cultural Politics of Re-industrialisation: Some Remarks on Cultural and Urban Policy in the European Union (Jonathan Vickery)PART 2: Political Considerations and Implications / 'Shrimps not whales': Building a City of Small Parts as an Alternative Vision for Post-industrial Society (Alison Hulme) - 'Der Arbeiter': (Re) Industrialisation as Universalism? (Krzysztof Nawratek) - Whose Re-industrialisation? Greening the Pit or Taking Over the Means of Production? (Malcolm Miles) - Crowdsourced Urbanism? The Maker Revolution and the Creative City 2.0. (Doreen Jakob) - Brave New World? (Tatjana Schneider) - The Political Agency of Geography and the Shrinking City (Jeffrey T. Kruth)PART 3: How Should We Do It? / Beyond the Post-Industrial City? The Third Industrial Revolution, Digital Manufacturing and the Transformation of Homes into Miniature Factories (John R. Bryson, Jennifer Clark, & Rachel Mulhall) - Conspicuous Production: Valuing the Visibility of Industry in Urban Re-industrialisation Strategies (Karl Baker) - Industri[us] (Christina Norton) - Working with the Neighbours: Co-operative Practices Delivering Sustainable Benefits (Kate Royston) - Low-carbon (Re-)industrialisation: Lessons from China (Kevin Lo & Mark Yaolin Wang