ABSTRACT
Industrial policy has a pivotal influence over the development of the European business environment through establishing the framework within which other policies influence the performance of enterprise. The internationalisation of economies means that this framework is increasingly market oriented with emphasis away from direct state involvement in the economy towards one of state passivity. This chapter begins by examining the role of industrial policy within integrating and internationalising economies
national competitiveness. Thereafter, the role of globalisation in increasing the prominence of supranational policy and the shift in the form and nature of the policy actions are explored. Finally, the policy measures used to promote the international positioning of European-based enterprises are examined.
