Perilous Evolutionary Paths of Industrial Policy in a Developmental Context: Evidence from the Chinese Medical Industry

• DOI: 10.1111/tesg.12621
• Publication Date: 2024-03-15T09:42:20Z
• Authors: Wei Zhang; Canfei He
• Keywords: Industrial Policy

Abstract Industrial policy, as one of the most potent weapons employed by governments, is recommended to adhere principles high relatedness and economic complexity, which can minimize risks maximize returns. However, this approach may not be optimal in developing countries with poor industrial bases, limited innovative capabilities weak institutional frameworks. Based on study illustrates evolution paths policy China identifies underlying influencing factors deciding patterns policymaking. Different from developed countries, it takes several steps for reach final target, smart specialization approach, instead one‐step jumping. Moreover, always panacea, effects vary depending local contexts. In sum, extends research towards complex co‐evolution process industries provides more insights