What Industrial Policy?

There is an expression that I have heard repeated ad infinitum in the business community that says if you do not set a goal you are bound to hit it. If this concept is so central to business success why is it that the government is so reluctant to establish environmental, energy and industrial policies with measurable goals to provide guidance and direction to private industry?

If the lead is left solely to the private sector will the outcome not be a fractured hodgepodge of differing and maybe incompatible standards and philosophies with no clear goals? How do we measure success without goals to guide us?

In the 1960’s President Kennedy set a goal for the nation of sending a man to the moon and returning him safely to earth by the end of that decade. That one goal set in motion a chain of events in technological development that has not been seen since. Without that goal we might not have the computer technology that enables me to write this piece today. Think about it, my little netbook has more computing power and memory than the Apollo spacecraft that went to the moon and back.

Other countries such as India, China, the European Union and to some extent Canada, have policies regarding energy production, transportation and manufacturing that are giving them the lead in environmental goals and projects.

We need national and international projects that push technology to that extent. We need goals and time targets for clean energy development and implementation. We need to set goals for sustainable manufacturing that minimizes effects to our industrial supply chain from natural disasters such as Japan’s recent earthquake. Public transport in urban areas must be better developed to cut pollution and travel costs for citizens.

Politicians in this country usually want private industry to take the lead in these areas but that philosophy has one glaring fault that never seems to be mentioned in public. Private interests will not invest on a large scale if there is not reasonable profit to be made within a date certain period of time. American business interests seldom seem to look much beyond the next year if not the next quarter and governments fail to look past the next election cycle. Both industry and government must coordinate on long term goals that will not be derailed by the fickle winds of party politics. Only long term stable policies can provide the solutions that this country needs to become the true world leader in the technologies of the future.

Governments must provide the policy goals and environments to guide private industry into a better future for all and to establish and maintain world leadership in these endeavors. The private sector lacks the inherent focus and coordination to provide the necessary vision and leadership to establish and meet the greater goals that our country and our world needs.