THE INDUSTRIAL POLICY DEBATE AND ITS IMPLICATIONS FOR STRATEGIC MANAGEMENT

In recent times the term “industrial policy” has sparked a lively American debate. The apparent decline of America's competitive position in the world economy, widespread concern over the deterioration of such basic industries as steel and automobiles (also called “Rust belt industries”), and increasing concern about the potential of U.S. to main‐tain its lead in high technology have led to renewed reap‐praisal of government's role in economic life.