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Main Author: Dachs, Bernhard
Format: Recurso digital
Language:English
Published: Zenodo 2025
Subjects:
Online Access:https://doi.org/10.5281/zenodo.17150301
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author Dachs, Bernhard
author_facet Dachs, Bernhard
contents <p>Industrial policy is making a comeback in many countries, with old questions about how to enhance technological sovereignty and support ‘strategic’ industries once again taking center stage.<br>This paper studies the long-term effects of industrial policy through the example of the Joint European Submicron Silicon Initiative (JESSI), launched in 1989. JESSI funded large-scale R&D with the aim of boosting the competitiveness of the European microelectronics industry.<br>The example of JESSI illustrates the complexities and uncertainties of industrial policy; technological change and market dynamics made important initial objectives obsolete. Furthermore, JESSI's goal of fostering an European alliance conflicted with the global strategies of participating multinational enterprises (MNEs) who also sought collaborations with non-European firms.<br>Despite these challenges, JESSI also yielded significant long-term benefits, some of which were unintended. It helped to establish technological trajectories still evident today and provided critical early support for ASML, now Europe's leading player in the industry.<br>The analysis demonstrates the need to align policy goals with the strategies of participating companies; financial incentives are ineffective when they contradict the intrinsic strategic objectives of MNEs. Furthermore, JESSI emphasizes the need for industrial policy to remain flexible and responsive to unforeseen changes. Positive outcomes, it seems, can sometimes emerge from the most unexpected sources.</p>
format Recurso digital
id zenodo_https___doi_org_10_5281_zenodo_17150301
institution Zenodo
language eng
publishDate 2025
publisher Zenodo
record_format zenodo
spellingShingle Trade-offs between Industrial policies and MNE strategies: the example of the JESSI initiative
Dachs, Bernhard
Industrial policy
semiconductors
European Union
<p>Industrial policy is making a comeback in many countries, with old questions about how to enhance technological sovereignty and support ‘strategic’ industries once again taking center stage.<br>This paper studies the long-term effects of industrial policy through the example of the Joint European Submicron Silicon Initiative (JESSI), launched in 1989. JESSI funded large-scale R&D with the aim of boosting the competitiveness of the European microelectronics industry.<br>The example of JESSI illustrates the complexities and uncertainties of industrial policy; technological change and market dynamics made important initial objectives obsolete. Furthermore, JESSI's goal of fostering an European alliance conflicted with the global strategies of participating multinational enterprises (MNEs) who also sought collaborations with non-European firms.<br>Despite these challenges, JESSI also yielded significant long-term benefits, some of which were unintended. It helped to establish technological trajectories still evident today and provided critical early support for ASML, now Europe's leading player in the industry.<br>The analysis demonstrates the need to align policy goals with the strategies of participating companies; financial incentives are ineffective when they contradict the intrinsic strategic objectives of MNEs. Furthermore, JESSI emphasizes the need for industrial policy to remain flexible and responsive to unforeseen changes. Positive outcomes, it seems, can sometimes emerge from the most unexpected sources.</p>
title Trade-offs between Industrial policies and MNE strategies: the example of the JESSI initiative
topic Industrial policy
semiconductors
European Union
url https://doi.org/10.5281/zenodo.17150301