Abstract

Industrial policy in capitalist systems is complementary to the market process. Declared objectives are promoting technological innovation and structural adaption in order to increase industrial efficiency. In numerous instances, however, support or protection provided to sectors threatened by employment dislocations has the effects of preserving existing inefficiencies. Finally, in recent years the by-products of industrialization have become an additional though still less important factor. Industrial policy instruments are intended to supplement the market process by influencing the profitability of investment or operating conditions in enterprises by transferring financial costs or resources. Assimilation of industrial policies within the European Community is hampered by the different roles which its member countries give to economic concentration, competition policy and the public sector of industry.