Government Role in FosteringEmerging Technological Industries: ANew Perspective for Industrial PolicyResearch

He Jun*

Institute of Industrial Economics (IIE), Chinese Academy of Social Sciences (CASS), Beijing, China

Abstract: Mainstream industrial policy research cannot fully explain how governmentinterventions have helped China’s mobile communications industry catch up with andovertake those of advanced nations. China’s mobile communications industry madebreakthroughs in 3G, caught up with advanced nations in 4G, and gained a leadershipposition in 5G due to the implementation and improvement of a strategy of industrialcompetition that accommodates mainstream standards and prioritizes the mid-bandspectrum based on the integrated “technology, standard and industry” deployment systemand swift decision-making. The introduction of a perspective of a strategy of industrialcompetition may supplement industrial policy research in the following ways: First, whenthe concerted actions of numerous innovators are important for industrial competitionperformance, an effective strategy of industrial competition can be devised and overallcoordinated by the government provided that is compatible with the catch-up developmentof emerging technological industries. Second, an industrial policy becomes effective whenit is complementary with the strategic factors for long-term industrial performance suchas the strategy of industrial competition and avoids serious disruptions to market-basedmechanisms.

Keywords: Government intervention, strategy of industrial competition, overall

JEL Classification Code: L52

DOI: 10.19602/j.chinaeconomist.2023.09.02