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Publication: Industrial Policy and Development: Time for Disciplined Action

Kovács, O. (2023): Industrial Policy and Development: Time for Disciplined Action. Financial and Economic Review, Vol. 22 Issue 4, December 2023, 5–30. DOI: https://doi.org/10.25201/HSZ.22.4.5

This essay seeks to answer one of the key paradoxes of the fourth industrial revolution (Industry 4.0) that has been unfolding since 2011: Despite the multitude of dedicated industrial policy strategies and policy interventions put in place since then, why have we not seen spectacular success? Using the US and EU industrial policy landscape, I argue that, although it will take time for the effects of Industry 4.0 to materialise, the strategy of “patience is a virtue” (respice finem) cannot be sustained indefinitely, i.e. until certain systematic industrial policy paradoxes are resolved, because only a systemic and primarily resilience-driven industrial policy can be expected to yield results.
Date: December 20, 2023