Congressional Quarterly Weekly
July 17, 2010 Saturday
Pushing for A Venture Capitol
By Joseph J. Schatz, CQ Staff
Talk of innovation and competitiveness strategies inevitably sounds to critics like a form of industrial policy -- with the government choosing which industries, and even which companies, win in the competition for scarce resources.
Clyde Prestowitz, president of the Economic Strategy Institute, argues in a new book that it was such a mercantilist strategy -- similar in some respects to how China operates today -- that helped develop U.S. economic might, until the country embraced a more free-trade, market- oriented economic model in the 1950s. It's a provocative argument.
But industrial policy is a dirty phrase among conservatives and business-friendly Democrats -- including some in the White House -- who contend that government attempts over the last 30 years to steer private industry in certain directions have produced little.
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