The Impact of Industrial Policy on Advancing Technological Innovation

Varsha V. and Dr. V. T. Dhanaraj
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Varsha V.: Rathinam College of Arts and Science, Coimbatore, India
Dr. V. T. Dhanaraj: Rathinam College of Arts and Science, Coimbatore, India

African Journal of Commercial Studies, 2025, vol. 6, issue 5

Abstract: Industrial policy plays a central role in fostering technological innovation by supporting strategic industries, promoting research and development, and addressing market failures. Drawing on historical examples from countries such as the United States, Japan, and Germany, this paper explores how targeted industrial policies have contributed to the growth of advanced technological sectors including artificial intelligence, biotechnology, and renewable energy. The study also discusses potential risks associated with industrial policy such as inefficiency and rent-seeking, emphasizing the need for strong institutional frameworks and adaptive policy design to support long-term innovation-driven economic growth.

Keywords: Market Failures; State Intervention; Collaborative Partnerships; National Innovation Systems; Economic Growth (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:cwk:ajocsk:2025-97

DOI: 10.59413/ajocs/v6.i5.4

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