European Competition and Industrial Policy: An Assessment and a New Framework

Abstract

This chapter discusses alternative perspectives on private–public interactions and supply-side competition and industrial policies in theory and in practice. It also critically assesses recent European policies in this context. It then develops a new framework that emphasises the sustainability of value creation at the firm, meso and national levels, and explores its policy implications. It views current EU policies as a step in the right direction, but argues that they need to pay more attention to the issue of economic sustainability, the link between corporate, public and global governance, and the impact of different power structures and hierarchies of agencies on industrial policies for sustainable value creation. The limitations of self-monitoring and diversity suggest the need for a global competition and regulatory policy regime that place sustainability at the core of its Agenda.