Industrial Policy in Europe, Japan and the USA: Amounts, Mechanisms and Effectiveness Book

List of Tables x

List of Figures xii

List of Acronyms xiii

Acknowledgements xvi

Introduction xvii

Part I Theory and Empirical Evidence

1 Public Support to Business: An Overview 3

1.1 Motivations 3

1.2 Types of public support to business 5

1.3 Instruments of public support to business 6

1.4 Conclusion 9

2 Cases for Public Support: Market Failures 10

2.1 Information 10

2.2 Externalities 11

2.3 Imperfect competition 16

2.4 Conclusion 18

3 Argument Against Public Support: Government Failures 20

3.1 Information 20

3.2 Conflicts with other policies 22

3.3 Political Economy 25

3.4 Conclusion 27

4 Instruments of support: Subsidies and public procurement 29

4.1 Subsides 29

4.2 Public procurement 43

4.3 Conclusion 54

5 Effectiveness of Public Support 55

5.1 Assessment issues 55

5.2 Empirical evidence on the arguments in favour of public support 57

5.3 Empirical evidence on the argument against public support 73

5.4 Conclusion 81

Part II Quantitative Assessment

6 Subsidies and state Aid 85

6.1 Public support policies in the OECD countries (1998) 89

6.2 Quantitative analysis of state aid in the EU 91

6.3 Public support policies in the EU the USA and Japan 94

6.4 Conclusion 98

7 Public procurement 101

7.1 Divergences in assessments 101

7.2 Aggregate assessment using the EU definition 102

7.3 Public procurement by function (the EU definition) 105

7.4 Conclusion 111

Part III Country Studies

8 Public support in Germany 115

8.1 Objectives of public support 116

8.2 Actors 121

8.3 Instruments 125

8.4 Industry sector and structure 127

8.5 public sector structure and public propcurement 128

8.6Evaluation and efficiency of instruments 132

8.7 Conclusion 137

9 Public Support in France 140

9.1 Objective of public support 142

9.2 Actors 145

9.3 Industry sector and structure 150

9.4 Public sector structure and public support policy 152

9.5 Evaluation and efficiency of public support policy 155

9.6 Conclusion 157

10 Public support in the united kingdom 160

10.1 Objectives of public support 160

10.2 Actors 161

10.3 Instruments 162

10.4 Outcomes of public support in the United Kingdom 167

10.5 Conclusion 169

11 Public support in the United States 170

11.1 Objectives of public support 171

11.2 Actors 172

11.3 Instruments 173

11.4 Outcomes of public support in the United States 179

11.5 Conclusion 182

12 Public Support in Japan 184

12.1 Objectives of public support 187

12.2 Actors 189

12.3 Instruments 191

12.4 Industry sector and structure 194

12.5 Public sector and public procurement 196

12.6 Evaluation and efficiency of public support policy 198

12.7 Conclusion 201

Conclusions 203

Notes 206

Bibliography 213

Index 225