Revisiting the nexus between industrial policy and regional economic resilience in an era of grand societal challenges

Orkestra Basque Institute of Competitiveness

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2022
Edurne Magro
Hacienda Pública Española-Review of Public Economics

Keywords: Regional resilience, industrial policy, policy-mixes, grand societal challenges.

JEL Codes: 025, 038, R11, R58.

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Abstract

In this paper, we adopt an evolutionary approach to understand the role of industrial policies in developing regional short-and long-term resilience. We take an in-depth look at the different type of policy instruments tocategorise the different place-based approaches and industrial policy mixes and explore their role in addressing grand societal challenges. To do so the paper examines the Basque Country region in Spain, which not only has implemented a long-term industrial policy over the last 40 years but has also demonstratedto be a resilient regionduring previous crises.

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