The industrial policy of competitiveness: A review of recent developments in the UK

The article reviews the recent developments in UK competitiveness policy, and explores its relationship with industrial policy, including regional industrial policy. It argues that competitiveness is virtually synonymous with productivity growth, but that while four Competitiveness White Papers of the 1990s potentially broadened the scope of UK industrial policy, the shift from 'sectoral' to 'horizontal' measures has in fact helped much reduce the content of this policy. The article reviews current industrial policy and expenditure, distinguishing between the areas of science and technology, small firms and regional policy. It argues that industrial policy is now a part of competitiveness policy, being closely aligned to the efficiency role of government. It finds that while policy has converged on a narrower set of measures, the traditional boundaries between the science and technology, small firm and regional policy components have become much less clear-cut.