You are right. But let us also remember that countries like South Korea, Taiwan, and Singapore started very poor but managed to use industrial policy to move to the top ranks of technology.
I felt like Work: The Last 1,000 Years did a good job showing that the development of capitalism and the development of a powerful central government were self-reinforcing systems. On the one hand, since I believed so until a few years ago, I can understand why so many people view politics and economics as separate realms. On the other hand, knowing what I know now it seems like a hugely oversimplified view of things and I wish I knew how to make other people see that.
Industrial policy to achieve semiconductor capital goods self-sufficiency is the preserve of only capital rich nations since this type of industrial policy entails heavy long-term capital investment and major R&D expenses. So, only dedicated long-term minded capital rich nations can pursue such industrial policy.
On the other hand, if a nation successfully pursues such industrial policy , then that nation will be rewarded with plethora of high value added high productivity tradable manufacturing and service jobs along with substantial expansion of capital goods manufacturing base as well as substantial improvement in current account balance.
You are right. But let us also remember that countries like South Korea, Taiwan, and Singapore started very poor but managed to use industrial policy to move to the top ranks of technology.
Too true
I felt like Work: The Last 1,000 Years did a good job showing that the development of capitalism and the development of a powerful central government were self-reinforcing systems. On the one hand, since I believed so until a few years ago, I can understand why so many people view politics and economics as separate realms. On the other hand, knowing what I know now it seems like a hugely oversimplified view of things and I wish I knew how to make other people see that.
Industrial policy to achieve semiconductor capital goods self-sufficiency is the preserve of only capital rich nations since this type of industrial policy entails heavy long-term capital investment and major R&D expenses. So, only dedicated long-term minded capital rich nations can pursue such industrial policy.
On the other hand, if a nation successfully pursues such industrial policy , then that nation will be rewarded with plethora of high value added high productivity tradable manufacturing and service jobs along with substantial expansion of capital goods manufacturing base as well as substantial improvement in current account balance.
Clyde: 'déjà vu.' all over again.
Regis