Abstract

The aim of this paper is to critically assess extant perspectives on industrial policy in general and for the European Union in particular. We claim that non-neo-classical, evolutionary and resource-based views of industrial policy, which emphasise intertemporal efficiency through innovation, are currently very influential in EU circles. This we welcome. However, more needs to be done, in particular, in developing a framework for sustainable value creation and anchoring industrial policy within this general framework. We provide such a framework in this paper and explore its implications on European industrial policy.