Working Paper No . 2011 / 80 Entrepreneurship , Stages of Development , and Industrialization Zoltan

Unlike in the past where industrial policy was either focused on creation and growth of state-owned firms or alternatively consisted merely of broadly functional policies without consideration for firm or entrepreneurial specifics, the requirement now is that future industrial policy ought to be a nuanced partnership between entrepreneurs and the state. In this paperwe outline some considerations for such an industrial policy where the entrepreneur–state nexus is paramount. Moreover, we argue that such an industrial policy will need to take into consideration that the entrepreneur–state nexus is evolving, and that it depends on the stage of development of a particular country.