Industrial policy is becoming more popular for critical technologies. Semiconductors, quantum computing, and AI are three prominent digital targets. Choose Semiconductors as a specific technology and country/region (U.S.). Discuss one key proposal for Semiconductor industrial policy. Evaluate the feasibility of the success of the policy. This should include a discussion of the international costs and benefits of the policy.
Requirement:
This paper cannot simply repeat the argument of basic content. It must expand the analysis in some significant way (for example, by doing deeper research on one or more of the “policy steps” in policy analysis).
Six-step Outline:
Clearly define “what is the problem?”
To what extent will society or the market resolve or change the nature of the problem over time? How will these changes influence the options for policy?
Can this particular policy intervention provide a superior outcome? (a causal theory)
Theory: Market failure and insufficient market
Policy: How does industrial policy address problems in the market, involving different instruments?
Do social benefits outweigh the social costs?
Examine the fiscal expenditure data pertaining to industrial policies within the semiconductor industry across various countries from 1980 onwards.
Compare the total value of the semiconductor industry by country over time.
How is the US planning on implementing this policy? Is it feasible? (Political, legal & administrative feasibility)
What will be the societal reaction to the policy—local, national, and global?
