International Journal of Applied International Business (ISSN: 1743-2111) Volume 1 Issue 2
Dr. Andrew L S Goh, Ph.D.
Division of Business
University of South Australia
Fierce competition has placed enormous pressure on developing nations to rethink about their approach in industrial policy-making. Conventional approaches of industrial policy, centred on the traditional macro-economic strategy of producing high-value goods and services for international trade, have propelled developing nations to embrace the imperatives of science and technology. Yet, the basic pragmatic question lingers: do these approaches of industrial policy yield the desired economic pay-offs for developing nations? Whilst the answer(s) may be multi-faceted, complex and even country-specific, several lessons may be drawn from the experience of developed nations which have enacted industrial policy to address firms’ concerns in innovation pursuits. This paper sheds light, based on an empirical study of ex post facto information collected from Singaporean firms, to put in perspective how developing economies could leverage on the strategic role of innovation-driven industry policy.
Keywords: Industrial policy, innovation, technology development, innovation-driven industrial policy, developing nations, developed world and economic competitiveness