Industrial Policy after the Crisis
Show Less

Industrial Policy after the Crisis

Seizing the Future

Patrizio Bianchi and Sandrine Labory

Industrial Policy after the Crisis provides a fresh and insightful study on the lessons that can be drawn from the global financial crisis for the analysis, definition and implementation of industrial policy. The authors utilize a political economy framework for the analysis of industrial development post-crisis, centred on the organisation of production and stressing its importance for the wealth of nations, meaning not only rising income but also ‘justice and happiness’.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 3: Division of Labour and Industrial Development

Patrizio Bianchi and Sandrine Labory


In this chapter, we start presenting a framework for the definition of industrial development policy. We have shown, in the previous chapter, the importance of the analysis of production organisation in the study of the determinants of industrial development and the wealth of nations (viewed as wider than economic wealth, and intending social and environmental sustainability). Production organisation has changed dramatically, with the unbundling of the various phases of the production process and the creation of global value chains. Parts of the production process can be carried out by suppliers spatially separated, even in different countries. Production organisation was analysed by Adam Smith as the division of labour, giving rise to the modern firm. We extend the analysis of labour division to the evolution of production organisation in the twentieth century and up to today. We do not pretend to re-interpret Smith or to provide an exhaustive account of his ideas; rather, we use some of his ideas to provide the foundations of our framework for the definition of industrial policy. Note that Bianchi (1981) already used a framework based on the work of Adam Smith to explain the dramatic changes in production organisation that arose in the 1970s and 1980s, especially in the automobile sector. We extend it to explain changes arising since then. In our view, the essence of the firm is the division of labour, namely the coordination of specialised skills and competencies of different individuals, in a dynamic and complementary manner, since skills and competencies are...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.