კონფერენცია

∘ Lali Khurtsia ∘
IMPORTANCE OF INDUSTRIAL ECONOMIC POLICY IN DEVELOPED ECONOMIES

Summary

Industrial policy is a strategic effort of the state to encourage economic transformations, to create appropriate incentives, the purpose of which is to increase productivity and economic activities both within sectors or within them. In other words, industrial policy is any selective state intervention that seeks to change the structure of production to increase the efficiency of those sectors that will contribute to the country's economic growth in the future, and which would not have happened if there were no encouraging steps taken by the state.

At present, there is a debate in the economic opinion about which industrial sectors can go under the attention of the state industrial policy. The promotion of all industries by the state is not equally useful for development; Some industries may be good for mass employment but less conducive to technological development. In addition, industrial policy is a relatively demanding approach. For government policy to be effective, its design and implementation must take into account both government capacity and political will.

Below we review the works of various researchers and scientists on the formulation and development of industrial policy and industrial strategy. The review combines both academic papers and historical examples of various countries that have succeeded in economic development through the implementation of successful industrial policies.

Ivane Javakhishvili Tbilisi State University Paata Gugushvili Institute of Economics International Scientific C O N F E R E N C E S "ECONOMY – XXI CENTURY"

E ISSN 2587 - 4691	∘ Lali Khurtsia ∘ IMPORTANCE OF INDUSTRIAL ECONOMIC POLICY IN DEVELOPED ECONOMIES Summary Industrial policy is a strategic effort of the state to encourage economic transformations, to create appropriate incentives, the purpose of which is to increase productivity and economic activities both within sectors or within them. In other words, industrial policy is any selective state intervention that seeks to change the structure of production to increase the efficiency of those sectors that will contribute to the country's economic growth in the future, and which would not have happened if there were no encouraging steps taken by the state. At present, there is a debate in the economic opinion about which industrial sectors can go under the attention of the state industrial policy. The promotion of all industries by the state is not equally useful for development; Some industries may be good for mass employment but less conducive to technological development. In addition, industrial policy is a relatively demanding approach. For government policy to be effective, its design and implementation must take into account both government capacity and political will. Below we review the works of various researchers and scientists on the formulation and development of industrial policy and industrial strategy. The review combines both academic papers and historical examples of various countries that have succeeded in economic development through the implementation of successful industrial policies.