The industrial policies of the German Länder and European integration

Abstract

The potential for any individual Land to secure benefits for itself in the field of industrial policy depends to a great extent on its willingness to engage in independent action. The freedom of manoeuvre of the Lander in this field, particularly in the area of regional and structural adjustment policies, has, however, been circumscribed as regional policy has become progressively ‘Europeanised’. The Lander have consequently devoted increasing attention to elements of ‘hidden’ industrial policy such as small business policy and research and technology policy. In this way they have to a certain extent reasserted lost autonomy while taking important steps towards ensuring their competitiveness in the post‐1992 Single Market.