Conceptual Principles of State Regulation of Industry on the Basis of New Industrial Policy

Abstract

It is proved that for effective state regulation of industry it is necessary to pursue a clear, high-quality and purposeful state industrial policy. To do this, we should use the full range of available mechanisms and tools. In the course of the research it was established that industrial policy means a set of measures of state regulation of economic processes at the sectoral and corporate levels, aimed at stimulating innovation activity, structural adjustment of the economy and economic growth. The necessity of pursuing the new industrial policy, which can be defined as a policy of maintaining competitiveness, is substantiated. It is determined that the process of state regulation of industry is a set of actions of the state as an institution used to influence the activities of economic entities (enterprises, corporations, entrepreneurs, etc.), as well as certain aspects of this activity related to acquisition of factors of production, organization of production, distribution and sale of goods and services in all phases of the life cycle of the business entity and the life cycle of its products. State regulation based on industrial policy has both positive and critical statements, the essence of which depends on the subject under discussion, namely, policy as a set of state measures and policy as a means to achieve political goals. It is proposed to allocate a list of new conditions for the implementation of effective state regulation of industry on the basis of state industrial policy, which form the conceptual basis of the new industrial policy. The main (basic) characteristics of state regulation of industry on the basis of traditional and new industrial policy are given, where the scenarios of traditional (vertical) policy and new (horizontal) policy are based. Based on the analysis of the practice of state regulation of industry in the European Union, priority areas of regulation have been identified, namely: increasing competitiveness through the development of new markets; strengthening of innovative activity, development of knowledge-intensive businesses; accelerating the process of restructuring companies and industries; improving the institutional and legislative environment; protection of intellectual and property rights; improving the quality and skills of the workforce.