Rethinking Productive Development

1. Front Matter

   Pages i-xxix

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2. The Role of Productive Development Policies

   1. Front Matter

      Pages 1-1

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   2. Rethinking Productive Development

      • Gustavo Crespi, Eduardo Fernández-Arias, Ernesto Stein

      Pages 3-31

   3. A Conceptual Framework for Productive Development Policies

      • Gustavo Crespi, Eduardo Fernández-Arias, Ernesto Stein

      Pages 33-58

3. Sound Policies in Key Areas of Application

   1. Front Matter

      Pages 59-59

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   2. Investing in Ideas: Policies to Foster Innovation

      • Gustavo Crespi, Eduardo Fernández-Arias, Ernesto Stein

      Pages 61-106

   3. The Start-Up and Scale-Up of High-Productivity Firms

      • Gustavo Crespi, Eduardo Fernández-Arias, Ernesto Stein

      Pages 107-143

   4. Beyond the Classroom: Preparing People to Produce

      • Gustavo Crespi, Eduardo Fernández-Arias, Ernesto Stein

      Pages 145-174

   5. Giving Credit to Productivity

      • Gustavo Crespi, Eduardo Fernández-Arias, Ernesto Stein

      Pages 175-202

   6. More Than the Sum of Its Parts: Cluster-Based Policies

      • Gustavo Crespi, Eduardo Fernández-Arias, Ernesto Stein

      Pages 203-232

   7. A World of Possibilities: Internationalization for Productive Development

      • Gustavo Crespi, Eduardo Fernández-Arias, Ernesto Stein

      Pages 233-278

   8. Selecting Priority Sectors for Productive Transformation: An Elephant in the Room?

      • Gustavo Crespi, Eduardo Fernández-Arias, Ernesto Stein

      Pages 279-317

4. Institutions for Successful Policies

   1. Front Matter

      Pages 319-319

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   2. The Hard Part: Building Public Sector Capabilities

      • Gustavo Crespi, Eduardo Fernández-Arias, Ernesto Stein

      Pages 321-358

   3. Two to Tango: Public-Private Collaboration

      • Gustavo Crespi, Eduardo Fernández-Arias, Ernesto Stein

      Pages 359-389

5. Back Matter

   Pages 391-461

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Productive transformation requires seizing the opportunities available and opening new ones in a competitive world. Rethinking Productive Development examines the market failures impeding transformation and the government failures that may make the policy remedies worse than the market illness. To address market failures, the authors propose a simple conceptual framework based on the scope and nature of the policy approach. They then systematically analyze country policies through this lens in key areas such as innovation, new firms, financing, human capital, and internationalization to show the power of this way of thinking. Still, the book warns that policymakers cannot be sure what the right policy interventions are and must set up a process to discover them that calls for public-private collaboration. Recognizing that the risk of capture needs to be checked and that even the best policies will fail without the technical, organizational, and political capacity to implement them, thebook concludes with ideas on how to design institutions fostering the right incentives and how to grow public sector capabilities over time.

• Latin America
• Growth
• Productive Development
• Innovation
• Industrial Policy
• Productivity
• development
• internationalization
• Start-up

“A rich set of commissioned case studies grounded in a generous reading of the academic literature, the editors do a beautiful job of presenting the work in a single, reader-friendly voice. … Rethinking Productive Development is … well adapted, it could transform the institutions guiding and inhibiting growth in Latin America.” (Patrice Franko, Latin American Research Review, Vol. 54 (1), 2019)

"The Washington Consensus its name notwithstanding was invented in Latin America. However, as this useful report shows, inadequate productivity growth since its adoption has forced the region's policymakers to reconsider whether the wholesale rejection of industrial policy was appropriate. The Inter-American Development Bank has long been at the forefront of this rethinking. The authors do a masterful job of not only surveying what is known about 'productive development policies,' but also laying out a policy agenda. Admirable in its analytical exposition, empirical detail, and policy discussion, this is a must-read for development economists and practitioners alike." - Dani Rodrik, Albert O. Hirschman Professor of Economics, Institute for Advanced Study, USA

"Once the commodities boom is over, Latin America will have to discover new sources of economic growth. Tired orthodoxies will not do the trick, but the fresh thinking contained in this volume just might. It explains what went wrong with industrial policies in the 1960s, and what countries have to do differently this time around. First-rate. Should be required reading for policymakers around the region." - Andrés Velasco, Former Finance Minister, Chile

"This book is a must-read for policymakers and practitioners in the elusive world of effective industrial policies. A useful toolbox to think about a topic that is central to any government today." - Mauricio Cárdenas, Minister of Finance and Public Credit, Colombia

• Economic Growth and International Trade, University of Chile, UK

  Gustavo Crespi

• Science and Technology Policies, Sussex University, UK

  Gustavo Crespi

• Economics and a Masters in Statistics, University of California, Berkeley, USA

  Eduardo Fernández-Arias

• Economics, University of California, Berkeley, USA

  Ernesto Stein

Manuel Agosin Mariana Bassi Juan Blyde Gabriel Casaburi Jorge Cornick Gustavo Crespi Fernando De Olloqui Eduardo Fernández-Arias Alessandro Maffioli Christian Volpe Martincus Ugo Panizza Carlo Pietrobelli Alejandro Rasteletti Graciana Rucci Ernesto Stein Alberto Trejos Sergio Urzua Rodrigo Wagner

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