By David Coates (eds.)
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Example text
Around the edge of the study of industrial policy therefore, we shall need to look for and identify these broader, more general characteristics of state-industry interaction. The literature on industrial policy in post-war capitalist economies suggests the existence of at least three types of such state traditions and ways of linking government to industry·- the liberal, the developmental, and the negotiated/consensual - and contrasts each with the centrally planned command economies characteristic of the Soviet bloc prior to 1989.
Indirect industrial policy is the effects on those sectors which flow from the often unanticipated impacts of more general economic and social policy concerns. These other areas of policy then shade into indirect industrial policy in so far as they help to promote (or indeed hinder) the efficiency and 24 Introduction competitiveness of particular sectors, industries and firms. This distinction parallels closely others common in the literature on industrial policy: between 'discriminatory' and 'non-discriminatory' measures, or between what D.
In the electronics industry, for example, the IRC provided finance to English Electric (EE) and Elliott Automation to facilitate their merger. The IRC then played a major role in the takeover of Associated Electrical Industries (AEI) by the General Electric Company (GEC), and subsequently supported GEC's takeover ofEE. In the case of the motor vehicle industry, the Wilson Government inherited a very difficult situation from the previous Conservative administration, which had chosen to encourage car manufacturers to locate new plants away from existing manufacturing capacity and markets in regions of higher unemployment, such as Merseyside, or Linwood in Scotland.