An excellent book on the sunject of Industrial Strategy is Michael Porter’s “The Competitiveness of Nations”, sort of a seqaul to Adam Smith’s “The Wealth of Nations”. Porter, a prof at MIT, describes the premise that each country has some natural talent and specific natural resources to become leader in their niche fields.
For instance, Sweden has water power, forests and iron ore. This, with a lot of great inventors (Nobel,de Laval, Ericsson, etc.) allowed it to become a leader in pulp and paper manufacturing and also producing the equipment for it. It also became a world leader in high quality steels, and metallurgical processes. Sweden branched out in other manufacturing, with high quality always setting the tune. With only 8 million people you can’t become a mass production world supplier.
Sweden’s social political system also allowed it to become a leader in automotive safety,and environmentally friendly products.
Other countries examples of specialization are:
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Finland: forest products and forest products engineering, arctic Ice Breakers (they even built the Russian ice breakers), large diesel engines for marine and power generation, cross country skis, Nokia phones (the only “odd product”)
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Netherlands (Holland); a long time world trading and colonizing nation. Banking (Dutch bankers financed both sides during the Amercian Revolution), Insurance, shipbuilding, agricultural products(flowers, cheese, meat producs, etc.) and agricultural engineering, hydraulic engineering (1/3 of country below sea level), oil exploration and production (Shell)
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Japan; no resources, but very disciplined and precision focused work force. Imports all materials and energy. Electronics, high quality hardware and appliance, tools, shipbuilding, quality food addtives (Ajinomoto), recycling paper, steel, etc., cars, small tractors, motor cycles, power plants, etc.
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Canada; abundant resources of ALL kinds. Small population, close to US. Can basically live off producing and upgrading resources, but because of British heritage, became manufacturer and banker/insurance country as well.
Current strengths are Pulp & Paper engineerign & construction, mining engineering, power plant and hydraulic enginering, oil, gas & chemical plant engineeirng, nuclear power plants eng.& construction. Consumer products include snowwmobiles, cars (2.8 million /year), high tech products such as Blackberry, telephone switching systems.
Aerospace grew out of long distances and communication needs with the Alouette satellite being one of first communcation satellites in the seventies. NASA uses many Canadian components in the shuttle program.
Industrial pruducts mostly in aerospace, railway equipment, oil & gas production and processing equipment. All these actvities allow Canada to import low tech and consumer electronics, sporting goods, tropical fruits and vegetables, etc. and still run a substantial trade surplus, while exporting oil, gas, uranium, nickel, lead, zinc, cars (1000,000/year), airplanes, trailway equipment, oil and gas equipment and engieerign services. Canadian compnies are constantly shifting production up the tech. ladder and devolving low tech activities overseas.
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