Abstract This introductory chapter lays out the premise for the rest of the book and suggests that industrial policies have been a fundamental ingredient of all development processes. The notion of “industrial policy” is understood here in a quite expansive manner. It comprises policies affecting “infant industry” support of various kinds, but also trade policies, science and technology policies, public procurement, policies affecting foreign direct investments, intellectual property rights, and the allocation of financial resources. The contributions to this book analyze from different angles the role played by industrial policies, in the foregoing broad sense, and by institution building within that great transformation leading from traditional, mostly rural, economies to economies driven by industrial activities (and nowadays also advanced services), able to learn systematically how to implement and eventually how to generate new ways of producing existing and new products under conditions of dynamic increasing returns. The preface pulls together the major threads linking the various chapters of the book, addressing on the grounds of different national and regional experiences the patterns of knowledge accumulation, its political economy, the related distribution of rents, the role of trade, competition and IPR policies; the impact of institutions supporting technological learning, and the interaction between macro policies and corporate behaviors.
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