Abstract
This chapter considers the support and viability of government conducting industrial policy in the digital age. The accessibility and pervasive use of the internet by companies and consumers has diminished the power of the government in having an advantage in information and data availability to justify its intervention in economic planning and resource allocation. Nonetheless, the public goods characteristics of information and knowledge together with ICT-enabled networks and platforms for social economic transactions has given rise to a disruptive innovation. New business models, new products, and new production and delivery system have provided new scope and justification for new form of government industrial policy. Many scholars have recommended that government to act more like a venture capitalist to place bets rather than picking winners. Network economies and winner-take-all phenomenon necessitate the government to take on “soft” industrial policy, whose goal is “to enable closer co-ordination between individual economic agents and to allow for experimentation in the economy.”
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Toh, M.H. (2017). Development Strategies and Industrial Policies Amidst the Pervasive Use of Internet. In: Yülek, M. (eds) Industrial Policy and Sustainable Growth. Sustainable Development . Springer, Singapore. https://doi.org/10.1007/978-981-10-3964-5_24-1
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