Competition in the Global Marketplace – Hands-off or Hands-on Industrial Policy?

Should governments be involved in strategical support for key sectors or industries? The “Made in China 2025” initiative as well as the recent “National Industrial Strategy 2030” put forward by the German Federal Minister for Economic Affairs are prominent examples for the debate on the appropriate role of governments in shaping or accompanying structural change. Given the rapid technological progress of our time, how do we ensure that domestic firms remain globally competitive and capable in handling cutting-edge technologies? Do path dependencies and externalities require a more active role of the government, or is it sufficient to rely on competition policies and market forces? What is the right policy response to more intense global competition and the rise of China as a new economic super power? Do we need new National or European Champions to sustain our level of prosperity? The 100th KKG discusses the “Dos and Don’ts” of industrial strategies in the 21st century.