Applied Economy

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- Contemporary explanations

- National Innovation System (Lundwall/Freeman)

It is the flow of technology and information among people, enterprises and institutions which is key to the innovative process on the national level. According to innovation system theory, innovation and technology development are results of a complex set of relationships among actors in the system, which includes enterprises, universities and government research institutes.

It is the example for example in Germany, they have institutions which have to create the link between universities and firms. (Fraun Hoffer Institute)

- Public Private Partnerships

It can helps to have different views of the economy. Moreover, it can helps the private sector too.

- New geographical economy(Krugman)

If trade is largely shaped by economies of scale, as Krugman’s trade theory argues, then those economic regions with most production will be more profitable and will therefore attract even more production. That is, NTT implies that instead of spreading out evenly around the world, production will tend to concentrate in a few countries, regions, or cities, which will become densely populated but will have higher levels of income.

- Clustering (Marshall, Porter)

Industrial district was initially introduced as a term to describe an area where workers of a monolithic heavy industry (ship-building, coal mining, steel, ceramics, etc.) live within walking-distance of their places of work.

- Objectives and tools of the IP

Objectives Situations

Phase 1: 1945-1974: Active intervention towards sectors/Post war rebuilding activity

Phase2: 1974-1984: Strategic choices into competitive sectors/Economic crisis

Phase3: 1984-2000: Deregulation, more free economy/market liberalisation

Phase4: 2000-2015: Favour innovation/deindustrialisation

- Phase1: Instruments: nationalisations of banks and in decisive sectors (energy, transports, raw

Material…)

National champions’ policy in sectors such as defense…

- Phase2: “Niche policy” technological and industrial projects: to be more competitive

“Chains policy” vertical integration to master supply chain.