Abstract:

The formulation of industrial policy is a process of public choice. Industrial policy effectiveness is influenced by the relationship between policy supply and policy demand and depends on the interaction of policy supply factors and policy audience factors. Based on the data analysis of Industrial Policy Survey in Pudong New Area, this paper studies the influential factors of industrial policy effectiveness. The results show that when the actual perception of industrial policy effectiveness is higher than the expectation of it, industrial policy partly fails, while short-term effectiveness is more pronounced than long-term effectiveness; and when the actual benefits of long-term effectiveness is lower than expected returns, this unbalanced relationship will incentivize industry players to promote policy innovation. In the process of formulating industrial policy, the government has a greater influence on subjective preferences, and the degree of fit between industrial policy and corporate needs is low, which weakens the effectiveness of industrial policy; the stability of industrial policy and the diversity of promotion channels help to improve industrial policy effectiveness. Enterprises that make greater contributions to the development of local economies are more likely to gain industrial policy tilts and support, and those with higher levels of development feedback higher industrial policy effectiveness. Therefore, in order to further optimize regional industrial policy and improve the effectiveness, decision makers should pay more attention to the laws of market, making subdivision policy, combining the long-term and phased nature of policy, optimizing information distribution and management, and improving the implementation and evaluation of policy.

Key words: industrial policy, policy effectiveness, public choice, Pudong District of Shanghai