ABSTRACT
Industrial policy has a pivotal influence over the development of the European business environment by setting the framework within which other policies will seek to influence the performance of enterprise. The internationalisation of economies means that this framework is increasingly market orientated and is shifting the policy emphasis away from direct state involvement in the economy towards one of passivity. Initially this chapter seeks to examine the role of industrial policy within integrating and internationalising economies in terms of achieving the core policy goal of international competitiveness. Thereafter, the impact of European integration upon national industrial policies and how globalisation is increasing the prominence of supranational policy are explored. Finally, the policy measures intended to promote the international positioning of European-based enterprises are examined.
