What Can Industrial Policy Do? Evidence from Singapore

This article explores the limits of central industrial planning through a case study of the developmental state of Singapore. While previous scholars argued that successful industrial planning is impossible, this paper takes a different and modest position. Singapore’s industrial policy is acknowledged to have - to an extent - contributed to genuine economic development but its state-heavy approach, by crowding out local enterprises, led to unintended consequences in the form of poor productivity, innovation and entrepreneurship performance. This paper is relevant to contemporary discussions about mission-oriented industrial policy and the entrepreneurial state.

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What Can Industrial Policy Do? Evidence from Singapore

This article explores the limits of central industrial planning through a case study of the developmental state of Singapore. While previous scholars argued that successful industrial planning is impossible, this paper takes a different and modest position. Singapore’s industrial policy is acknowledged to have - to an extent - contributed to genuine economic development but its state-heavy approach, by crowding out local enterprises, led to unintended consequences in the form of poor productivity, innovation and entrepreneurship performance. This paper is relevant to contemporary discussions about mission-oriented industrial policy and the entrepreneurial state.

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