▪In a fiercely competitive global economy, it is no longer assured that the United Stateswill have needed domestic production and innovation capabilities, nor will it necessarilybe able to securely buy them at will from other nations.
▪U.S. economic and national security now depend on bolstering capacity in strategicallyimportant industries and technologies. A generic competitiveness policy will not suffice.
▪Policymakers cannot ensure the “right boats” are lifted without a strategic-industry policythat identifies key industries and technologies, continually monitors U.S. and foreigncapabilities, and implements policies to bolster targeted sectors.
▪Strategic-industry policy should not entail favoring U.S. firms over allied nations’ firmsthat produce or do research in the United States. Nor does it mean picking industries inwhich the U.S. has few capabilities or picking individual firms as “winners.”
▪It does entail identifying industries in which the U.S. must have adequate capabilities tobe secure. It means analyzing the strengths and weaknesses of each industry andimplementing the correct policy interventions to spur competitive advantage.
▪It is time to end the stale argument about free markets versus industrial policy. We needboth: market-based policy for most of the economy, and strategic industrial policy forselect sectors.
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