STRENGTHENING OF A FIRM COMPETITIVENESS THROUGH INDUSTRIAL POLICY: A LITERATURE REVIEW

The aim of this paper is evaluation different studies related to the industrial policy and its capabilities to increase competitive power of domestic companies, highlighting factors that affect results of such policy and performance of firms. This paper contributes to the theory analysis of old studies and recent research results. Overview of too different studies on the topic gives multidimensional results and the paper contains synthesis of various studies from the field. If in some topics it is observed general tendency in developing concepts and compromise theories by economists, theory of industrial organization experience uncertainty in how industrial policy should be organized. Realization of industrial policy can eventually give nothing as a result of small financial resources attracted for conducting of the policy as concept of “big push” claims or another reasons. Part of empirical studies state for vertical realization of industrial initiatives by supporting of defined sectors of economy when others suggest cluster approach to assist conglomerate of interdependent producers from distinctive industries. Nevertheless, all share the view that the goal of industrial policy is increasing of competitiveness of local companies. And the study highlights the sign of such competitive odds by appearance of so-called “hits” in export