𝗢𝗘𝗖𝗗 𝗖𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝗼𝗻 𝗪𝗲𝗲𝗸 - 𝗝𝘂𝗻𝗲 𝟮𝟬𝟮𝟰 On 12 June 2024, #OECDcomp welcomed Diane Coyle, Chiara Criscuolo, Bill Kovacic and Nathaniel Lane to discuss the interplay between industrial and competition policy and explore the potential role of competition authorities in the design, development and/or implementation of industrial policy. ➡ Read the key findings and access now all related materials including the OECD note by Wouter Meester, speakers' notes and presentations and 15+ country notes sharing their experiences on the topic at 🌐https://oe.cd/pcip 🔎 🅚🅔🅨 𝘁𝗮𝗸𝗲𝗮𝘄𝗮𝘆𝘀 from the discussion include: 👨🏭 Although by no means a new phenomenon, industrial policy has undergone some changes in recent years, including (i) the appetite for many governments to use it, at least explicitly, (ii) the objectives that governments aim to achieve with it, as well as (iii) the way in which it is deployed and researched. 📌 Governments and competition authorities have found different ways to insert competition considerations in designing industrial policy. However, continued co-ordination between a range of different government institutions – including competition authorities – is key to make industrial policy effective and minimise market distortions. ⏳ Industrial policy is complex and good policy design of policy instruments is key. An important role to make industrial policy pro-competitive can be played by “conditionalities”, which provide obligations on recipients of government support to ensure certain behaviour and performance, and “guardrails”, which condition public support on limiting extractive corporate behaviour in order to prevent firms from prioritising shareholder value over investing in true innovation. ⚙ Competition principles should be a cornerstone of carefully designed industrial policy measures, and in this sense, competition authorities can have an important role to play in designing industrial policy to ensure competition-friendly industrial policies.
OECD Competition Law and Policy’s Post
More Relevant Posts
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💥 Industrial policy practice is as much political as it is economic - as it is stated in our new blog post written by Mónika Mercz. 🔃 A good and effective policy is not only defined by the commonly used top-down approach: 1️⃣ involvement of several stakeholders, 2️⃣ a strong bureaucratic capacity, and 3️⃣ safeguards against regulatory capture are all essential components of it. 🔎 If you want to read about the factors behind the success and failure of industrial policy, you can find out more on our website. 👇
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The T.S. Eliot remark "humankind cannot bear too much reality" is used in this article to introduce Australia's plummeting rank in the Harvard Atlas of Economic Complexity. From a commendable position of 55 in the 1990s to a concerning 93 today (of 133 countries), Australia's trajectory in diversifying and intensifying its knowledge-based exports paints a stark picture of industrial decline. This article delves into the implications of Australia's dwindling advanced industries and what we need to do to regain competitive footing in the global market.
Today in our editorial series – Towards 3% R&D – Turbocharging Australia’s Innovation Effort – we turn to the role of national industry policy. Here Roy Green points to innovation and the success of a Future Made in Australia as intertwined. "There is now broad recognition around the world that government must play an active role in building a more inclusive and dynamic knowledge-driven economy, particularly with increasingly interconnected productivity and climate challenges," he writes. "Key to addressing these challenges is the need to grow manufacturing capability. Instead of telling us why the future cannot be made in Australia, the critics might more profitably turn their minds to how it can." #manufacturing #australianmanufacturing Department of Industry, Science and Resources #auspol University of Technology Sydney ARM Hub (Advanced Robotics for Manufacturing) #innovation Australian Government #economics Productivity Commission
Towards 3% R&D - the role of industry policy by Roy Green - Australian Manufacturing Forum
https://www.aumanufacturing.com.au
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#hitelintezetiszemle / #financialandeconomicreview From our #December issue: Title: #Industrial #Policy and #Development: Time for Disciplined #Action Author: Oliver Kovacs One of the striking #developments of recent times has been the discovery of the re-launch button for an #industrialpolicy that was put on ice decades ago. The essay reviews the concepts of industrial policy in the #unitedstates and #europe, which are now in a renaissance, and presents the requirements for a #modern #version of policy. The #fourthindustrialrevolution of our time calls for a disciplined and #resilience-driven industrial policy, which considers the management of the #systemic industrial policy #paradoxes prevailing in the #socioeconomic system to be its task. https://lnkd.in/ggaRvPHA
Industrial Policy and Development: Time for Disciplined Acti
ideas.repec.org
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"The #NZIA shows that the EU remains fundamentally incapable of formulating a constructive answer to the return of industrial policy." In his new policy position first published on Verfassungsblog, Nils Redeker gives three reasons why: ▪ The EU lacks the analytical capacity and political will to formulate meaningful industrial policy priorities. ▪ It does not have the regulatory levers to support selected industries. ▪ It lacks the financial firepower to leverage the scale of the European market and reach its goals without hurting fair competition. To learn what the next European Commission needs to do to formulate a constructive answer to the global return of industrial policy, read the position here: https://lnkd.in/eiak9r5Y
Chasing Shadows: What the Net Zero Industry Act Teaches Us About EU Industrial Policy
delorscentre.eu
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USTR is opening a comment period and conducting an associated hearing regarding “objectives and strategies that advance U.S. supply chain resilience in trade negotiations, enforcement, and other initiatives.” Comments will likely be due on April 22. The notice is pointed in its critique of global supply chains, accusing supply chain diversification efforts of “undermining support for democracy itself.” It denigrates the “last several decades” of U.S. trade policy, which simply had the “goal of creating an unfettered global marketplace” and encouraged corporate outsourcing without due regard to the true costs and risks. The notice touts labor and environmental standards as necessary antidotes and accuses U.S. trade associations of historically gutting labor and environmental standards “in conjunction with Members of Congress who supported weakening domestic labor rights.” The notice poses a series of 12 questions related to the drivers of business sourcing decisions and “trade and investment policy” approaches to structuring those decisions. Several sectors are specifically called out: Aerospace and aerospace components. Agriculture, forestry, and fisheries. Automobiles and automotive parts. Call centers, business processing operations, and related services. Critical minerals, including for electric vehicle and large-scale energy storage batteries, and related recycling. Metals. Pharmaceutical and medical goods. Semiconductors, microelectronics, and inputs thereto. Renewable energy generation, transmission, and storage, including solar and wind technology and inputs thereto. Textiles, such as yarns, fabrics, apparel, and other finished goods. USTR states that it will use comments to "to inform the development of trade and investment policy initiatives that promote supply chain resilience."
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State-led industrial policy is back in fashion, perhaps nowhere more than in the GCC. But how can states intervene effectively and when should they hold back? Have a look at my new paper, written in collaboration with Strategy&, about the dos and don'ts of industrial policy in the GCC:
Potential and pitfalls in industrial policy
strategyand.pwc.com
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Economist at wiiw, Adjunct Professor of Economics at WU, Senior Fellow & Head Economy Unit at CMEG
🌍 Exciting Research Update! 📊 I'm thrilled to share our latest paper, co-authored with Andrzej Cieslik and published as a Discussion Paper by ERIA: Economic Research Institute for ASEAN and East Asia. This study delves into the intricate relationship between non-tariff measures (NTMs) and multinational enterprises' (MNEs) investment decisions across borders. 🔍 Methodological Approach: We tapped into a rich dataset on Non-Tariff Measures (NTMs) from both WTO notifications and UNCTAD. Leveraging firm-level data from the Orbis database, covering 2004–2020. Employing Poisson pseudo-maximum likelihood (PPML) estimation to analyse the data. 🔑 Findings at a Glance: Regulatory divergence in NTMs, particularly in areas like technical barriers to trade and sanitary measures, poses significant barriers to multinational enterprise (MNE) activity. Such divergence escalates trade costs, complicating MNE operations. Firms with higher productivity seem to adapt more efficiently to regulatory challenges. 🌟 Policy Implications: Our study highlights the critical need for regulatory alignment in international trade. Policymakers can use these insights to foster more conducive environments for cross-border investments, which are vital for global economic growth and development. 📈 Why It's Important: This research sheds light on the intricate dynamics between regulatory policies and international economic activities. For business leaders and policymakers, understanding these nuances is key to navigating the global market effectively and ensuring sustainable economic partnerships.
The Impact of Regulatory Divergence in NTM on the Cross-Border Investment of Multinationals
eria.org
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The role of #sustainability within #logistics and #supplychain #operations is of high importance - and therefore #research from the #consumer perspective much needed as shown in a recent IJPDLM paper by Qi Yao, Yuntong Liang, Mengying Feng and Hao Wang titled „Are consumers willing to co-create value when focal firms' suppliers are proactive in green innovation? A chain liability and green halo effect“. ⏩ #research #contribution: The study uses the perspective of multi-tier #supplychain management to examine the impact mechanism and boundary conditions of #supplier #green #innovation types on consumers' willingness to participate in #value #cocreation. Using situational experiments, 660 participants were recruited in order to verify the effect of supplier green innovation. Results show that supplier green innovation efforts are more sincere when they are substantive, thereby generating higher value co-creation intentions with customers. This study enriches the literature on #green #supplychainmanagement and consumer willingness to co-create value. 📶 #management #impact: This study provides firms with practical #guidance to improve marketing performance and #green #innovation #practices through multilevel green supply chain management. ➡ https://lnkd.in/eeVpeRzp
Are consumers willing to co-create value when focal firms' suppliers are proactive in green innovation? A chain liability and green halo effect
emerald.com
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Editor-in-Chief International Journal of Physical Distribution & Logistics Management -Full Professor of Business Logistics & Supply Chain Management at University of Verona
Follow us on International Journal of Physical Distribution and Logistics Management. Explore intriguing and influential studies shaping the future of the industry. #Logistics #SupplyChain #ResearchUpdates
The role of #sustainability within #logistics and #supplychain #operations is of high importance - and therefore #research from the #consumer perspective much needed as shown in a recent IJPDLM paper by Qi Yao, Yuntong Liang, Mengying Feng and Hao Wang titled „Are consumers willing to co-create value when focal firms' suppliers are proactive in green innovation? A chain liability and green halo effect“. ⏩ #research #contribution: The study uses the perspective of multi-tier #supplychain management to examine the impact mechanism and boundary conditions of #supplier #green #innovation types on consumers' willingness to participate in #value #cocreation. Using situational experiments, 660 participants were recruited in order to verify the effect of supplier green innovation. Results show that supplier green innovation efforts are more sincere when they are substantive, thereby generating higher value co-creation intentions with customers. This study enriches the literature on #green #supplychainmanagement and consumer willingness to co-create value. 📶 #management #impact: This study provides firms with practical #guidance to improve marketing performance and #green #innovation #practices through multilevel green supply chain management. ➡ https://lnkd.in/eeVpeRzp
Are consumers willing to co-create value when focal firms' suppliers are proactive in green innovation? A chain liability and green halo effect
emerald.com
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Continuous adjustment needed for good industrial policy. Vision and strategy are key. Implementation will change depending on how effective they are and the stage of development.
Speechwriter and Economist, experienced in policy research, implementation and communication.
Some great insights from Dani Rodrik in his interview with the FT. On the common reasons for rejecting IP: "I don’t think the evidence justifies such a broad-brush rejection of industrial policy. Industrial policy is just like any other policy. Yes, it can be inefficient. It can be captured. But that’s not unique. Education policy can be captured by powerful teachers’ unions. Macroeconomic policy can be captured by financial interests. Infrastructure or health policy can be captured by special interests. So that sort of broad-brush generalisation isn’t based on either the economics of industrial policy or the evidence. I think it’s more an ideological predisposition about the role of government." On what successful IP requires: ✅ Be clearsighted. "The more things you try to achieve, the less likely you are to get them" ✅ Cannot be top-down. "base policy on input, information, iteration and learning" ✅ Discipline. "Successful industrial policy is not about picking winners, it’s about letting the losers go" On why studies dismissing IP miss the mark: "they don’t specify an appropriate counterfactual. When an industry receives support, we want to know how that industry would’ve done in the absence of that intervention — not compared to other industries that might not have faced similar challenges." On China's industrial policies: "a lot of it takes place at the regional and provincial level. The central government articulates certain priorities, such as electric vehicles or batteries, and then the provinces go on competing in stimulating local ecosystems." https://lnkd.in/eyrNaYVT
Dani Rodrik: doing industrial policy right
ft.com
Partner, Competition Law Practice at Khaitan & Co.
2moThanks for sharing. Continued improvements in industrial and trade policies dove-tailing with the enforcement of competition law may minimise waiting periods in antitrust litigation considerably besides converging global objectives of sovereigns.