Suchergebnisse

The Australian debate over industry policy centers on arguments about tariffs, micro-economic reform, corporate welfare and tax incentives. It is not surprising then that our understanding of industry development is relatively poor. The key point missed by the standard economic models is that industries do not develop in isolation. This paper examines the complex social, political and economic relationships associated with the emergence of the Australian magnesium metal industry. The purpose of the paper is to show that 'networks' play an important part in industry development. They enable a company to cope with either technological uncertainty, lack of knowledge, skills or funding. The study illustrates the process of networking as a development strategy for a small company. Finally, it is argued that 'innovation networks' could be a means of policy reorientation. This approach recognises how essential it is to involve potential users in industry development. The case study shows the need of an activist industry policy in order to pick industry winners.