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I actually agree, somewhat, with the idea that "green" industrial policy works best where it builds upon existing industrial capacities.  It's that idea of backward and forward linkages.

I suppose that industrial policy can use the location of an anchor firm, e.g. a turbine manufacturer, in order to draw suppliers to an area.  But without a potential supplier base that seems like quite a job.

For example, a history of auto transmission plants, and the matching supplier base, links well to wind turbine gearbox production.  The former is a step down gear, the latter a step up gear. The degree of complexity and tolerances are much higher in gearboxes, but still the existing industrial capacity matters. I don't think you really disagree with this, so I'm not sure if you are maybe overstating the neo-liberal tendency in the first piece.

And I'll give my consent to any government that does not deny a man a living wage-Billy Bragg

by ManfromMiddletown (manfrommiddletown at lycos dot com) on Tue May 31st, 2011 at 11:43:35 AM EST

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