Industrial Policies for Learning, Innovation, and Transformation: Insights from Japan and Selected Countries

This chapter aims to obtain insights into an appropriate industrial policy package for today’s developing countries by examining the industrialization process and industrial policies in five countries (Japan, Korea, Malaysia, Brazil, and Chile). To provide a comparative perspective, the chapter first reviews major typologies and essential aspects of industrial policies and their instruments, with special reference to learning. In each of the cases of selected industries, both horizontal and vertical industrial policies have been implemented. What matters for industrial development is the combination of industrial policy instruments that are appropriate in different circumstances, given sector-specific characteristics and challenges, and how these policies are formulated and implemented. As for the formulation and implementation of industrial policies, public–private partnerships have been extremely important. The case studies provide valuable insights into the concept of ‘translative adaptation and effective local learning,’ discussed in Chap. 1 . Generally, in the process of developing the above-mentioned industries, such adaptation and learning has taken place. Public–private collaborations, through partnerships between the government, firms, their associations, research institutions, and other stakeholders, have been essential in learning, adaptation, and innovation. Many indigenous adaptation and innovation initiatives have been carried out to address the distinct challenges that each country has faced.