Regional economic strategy for the East Midlands 2006-2009 - 'a flourishing region' technical paper number 2

This paper introduces the concept of market failure and applies the concept to each of the priority actions set out in the new RES. The purpose of this paper is to satisfy a requirement of the Department of Trade & Industry and HM Treasury when assessing public policy interventions1. Following the articulation of market failure the paper sets out the framework for intervention that underpins the new RES. This framework is evidence based, assesses market failure, and allows for a consideration of options before arriving at final RES policy