Introduction 5

Institutions for Industrial Policy 10

Hardware: The Institutional Structure 10

Sector Targeting and Coordination 11

A Leading Agency as the House of Knowledge or “Metis” 15

The Political Economy of the Leading Agency 19

The Role of the Leading Agencies in the Asian Miracles 20

Mandates 22

The Long Run Focus 23

Economy-wide Goals 24

Structural Transformation 25

Internal Organizational Structure 25

Political Economy Challenges 29

Software: The 4As Model of Institutional Features for Effective Action 31

Ambition-Agency 31

Autonomy 36

Accountability 40

Adaptability 44

Case Studies 48

Building a Silicon Dragon: Taiwan Province of China’s Semiconductor Industry 48

Ambition-Agency 49

Autonomy 51

Accountability 51

Adaptability 52

Competing in Sophisticated Sectors on a Global Stage: Korea’s Automotive Industry 54

Ambition-Agency 54

Autonomy 55

Accountability 56

Adaptability 57

Conclusion 60

References 62