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Title page
Contents
Foreword 3
1. Introduction 6
2. Industrial policy, competition policy and their objectives 8
2.1. Industrial policy's definition and rationale 10
2.1.1. The definition of industrial policy 10
2.1.2. Types of industrial policy 10
2.1.3. The rationale, objectives and potential risks of industrial policy 12
2.2. Contemporary industrial policy 15
2.2.1. Empirical evidence is increasing 17
2.2.2. Industrial policy to fulfil a crucial co-ordination role 19
2.3. Objectives of competition policy 20
3. Interplay between industrial policy and competition policy 22
3.1. Industrial policy affecting competition 23
3.1.1. Industrial policy can create or increase competition 23
3.1.2. Industrial policy supportive of competition 28
3.1.3. Industrial policy to address market failures 31
3.2. Competition policy affecting industrial policy 34
3.2.1. Merger control 34
3.2.2. Efficiencies 37
3.2.3. Potential competition and the timeframe of assessment 38
3.2.4. Co-operation agreements and abuse of dominance 39
3.2.5. State Aid 41
4. The Role for Competition Authorities in Promoting Pro-Competitive Industrial Policies 43
4.1. Authorities as competition advisor 43
4.2. Ensuring competitive markets through enforcement 44
5. Conclusion 45
References 47
Table 3.1. Examples of potential competition effects of subsidies 33
Figure 2.1. Taxonomy of industry policy instruments 11
Boxes
Box 2.1. Industrial policy and the East Asian Miracle 9
Box 2.2. Examples of contemporary industrial policy 16
Box 2.3. Operation Warp Speed 20
Box 3.1. The US meat-packing rescue package to foster competition 25
Box 3.2. Facilitating entry of new competitors through public procurement 27
Box 3.3. Conditionalities and guardrails in the United States 29
Box 3.4. Foreign Subsidies Regulation 36
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