In search of a third way in industrial development policy making

Document Type : Original research



If the common models of “planning” are the failed solutions for countries to achieve evolutionary strategies (you can refer to other publications of this journal) then what should we do and what are the other solutions that policy makers should face? The article aims to answer these questions. The most principle ideas of this article are based on the popular and authoritative research of Rodrik (2008) which contains precise statistical proofs and reasoning. The research brings about a novel approach especially in the field of industrial strategy for policy makers in developing countries. Rodrik emphasizes that the main strategists in a country are the pioneer entrepreneurs of that country who develop new ways for moving from traditional performances to modern ones through learning, trial and error procedures which result in economic growth. In this regard, the policy makers’ main responsibility is not to develop complicated interference tools, but to create a collaborative network with other entrepreneurs to resolve the oncoming obstacles. Herein, we map the importance of strategic networks through case studies: Poland economic Ketchup; German chemical industry Ketchup; and the most modern technological developments in American Darpa.