Productive Policy

: 17

Learn, Research, Do, Buy Tools !!!

Productive Policy: \(E_{s1} \rightarrow E_{s2}\); For this we need to have a useful characterization of the economy / and a database of productive policies; and a model of the economic vanguard. E means economy.

Catch-up is a dynamic evolutionary process, considered as a long-run process of closing the gap in capabilities by promoting learning and innovation in interaction with innovation systems (national, sectorial or regional).

A Technological Frontier productive policy aims to push the boundaries of innovation and productivity by strategically investing in research, development, and adoption of cutting-edge technologies; but also promoting button up innovation (aka democratizing innovation) (here venture capital + a large base of entrepreneurs) is key !!!

Leap-Frogging describes the phenomenon where developing economies bypass traditional stages of development, often by embracing advanced technologies or innovative solutions, to achieve rapid progress and competitiveness.

Whoever bets on nature - disassociated with intelligence → goes down. You cannot send rocks and receive all the products of human ingenuity and think that you are going to guarantee quality of life for everyone. Pounds of rock are worth less than pounds of transformed materials.

The Problem of Development Reduce To: So the question is how to supply an increasing amount and variety of new consumer goods with a finite labor force without jeopardizing food security?

Policy: Context (Use The Economic Vanguard Model) + Measures.

Countries: …

Index

What is a productive structure?

Why does what you export matter?

What public goods facilitate growth?

How can a country improve its industry?

How do we quantify technological upgrading?

How does the production matrix change over time?

How does an economy acquire productive capacities?

How do production networks amplify economic growth?

What percentage of local components are needed to be competitive?

How does globalization impact economic growth, inequality, and stability?

Which productive network is required to make an industry X competitive?

How do we measure the impact of technology on productivity and economic growth?

¿How does path dependency affect diversification? ¿Why do some different paths (create new capabilities) accelerate and converge with the technological frontier?

Some elements are ‘cluster policy’ / more dynamic R&D Model, quality control (Metrology), and Applying Research.

Structure of Industrial Policy Toolset

Policy Tools - Economy Sectors / Scope Co-determination: Depending on the sectors/scope will determine the policy tools at hands in practice.

Sectorial Policy is crucial because of our limited resources; specific sectors require targeted 'positive' policy tools to encourage convergence with the state of the art, as without these measures, some sectors may lag behind in reaching the technological frontier, necessitating prioritization of certain sectors.

¿Can we get the economic vanguard without applying ‘positive’ policy tools?

Note that we have a mineral industry (with back linkages/technology for processing, discovery, …); then we have a knowledge export; we need to look at the value chain, not the final good per se.

Nurture new industries; improve competitiveness in an existing industry.

Learn (Learn how to solve problems and export solutions) / Catch-Up.

Research (Research the solutions to problems and export solutions) / Move-Foward.

Growth policy encompasses a set of economic strategies and interventions aimed at achieving sustainable and inclusive economic expansion, typically through measures that stimulate investment, innovation, and productivity.

Industrial policy refers to a government's strategic approach and interventions aimed at fostering the growth, development, and competitiveness of industries within its economy.

A taxonomy of productive policy can be structured around different objectives, mechanisms, and sectors targeted for productivity enhancement.

Economic Vanguards

Economic Vanguard X: Productive Model + Research Model; where x is any economic sector or activity.

Sector / Aspects: Technology, productivity, industry, public service, infra-structure, R&D System, …

An economy is something that research, innovate, produce, … !!!

Category	Description	State of the Art	Examples
Economic Vanguard X	Productive and Research Models integrated for any economic sector or activity.	Productive Model + Research Model	Tech Sector: Advanced manufacturing integrated with cutting-edge R&D.
Sector / Aspects	Focus areas that are relevant for economic vanguards.	Technology, Productivity, Industry, Public Service, Infrastructure, R&D System	Technology Sector, Public Infrastructure Development, R&D Initiatives
State of the Art Productive Models in Firms	Advanced practices and technologies in film production.	Productive Knowledge, Absorptive Capacity, Innovation Capacity, Technological Capabilities, Processes, Management, R&D Models	Lean Manufacturing, Agile Management, Advanced R&D Labs
State-of-the-Art NIS	Advanced systems and frameworks supporting national innovation.	Integrated Innovation Policies, Support for Research Institutions	Government R&D Programs, Innovation Ecosystems
State-of-the-Art Local Supply Chains	Advanced development and efficiency of local supply chains.	Core Technology Mastery	Specialized Regional Supply Networks, Technology Hubs
State-of-the-Art Basic Research	Leading practices in foundational research.	State-of-the-Art Research Universities	Top-Ranked Research Institutions, Cutting-Edge Research Facilities
State of the Art Human Capacity	Advanced development of human resources and skills.	Technical Education, Research Universities, Migration Policies	Leading Technical Colleges, Progressive Migration Policies
State of the Art Complementary Goods	Essential infrastructure and support systems for economic sectors.	Competitive Tributary Structure, Finance, Physical & Digital Infrastructure, Energy, Stable Macroeconomics, Stable & Predictable Policy Environment	Efficient Financial Systems, Modern Infrastructure Projects, Reliable Energy Sources
Complex / High Value-Added Export Matrix	…	…	..

Industrial Policy

…

Collaboration-based Industrial Policy

Public-Private Partnerships (PPPs): Encouraging collaboration between the public and private sectors can leverage the strengths of both. Governments can provide funding, infrastructure, and regulatory support, while businesses contribute expertise, resources, and market insights.
Industry-Academia Collaboration: Facilitating partnerships between industry players and academic institutions promotes knowledge exchange, research, and talent development. This collaboration can lead to the creation of innovative technologies, products, and processes.
Cluster Development: Supporting the formation of industry clusters—geographic concentrations of interconnected businesses, suppliers, and support organizations—can stimulate innovation, knowledge spillovers, and economies of scale. Clusters often foster collaboration through shared infrastructure, specialized labor pools, and networking opportunities.
Technology and Innovation Consortia: Establishing consortia or alliances focused on specific technological domains encourages joint research, development, and commercialization efforts. These partnerships pool resources, mitigate risks, and accelerate innovation in areas such as advanced manufacturing, clean energy, or biotechnology.
Supply Chain Coordination: Strengthening collaboration along the supply chain enhances efficiency, resilience, and competitiveness. Governments can facilitate supplier development programs, industry standards, and information-sharing platforms to foster closer collaboration among suppliers, manufacturers, and distributors.
Cross-Sector Collaboration: Promoting collaboration across different industries or sectors can facilitate technology transfer, diversification, and the emergence of new markets. Cross-sector partnerships enable knowledge spillovers, synergistic innovation, and the application of complementary expertise.
International Collaboration: Engaging in international partnerships and networks enables access to global markets, talent, and technology. Collaborating with other countries on research projects, standardization efforts, or trade agreements can enhance competitiveness and foster innovation-led growth.

References

ChatGPT’s Lessons for Economic Development
¿Es la política industrial como la vitamina C o la penicilina?
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