Diamonds are forever?
Countries that actively adopt national champion policy are France and Germany. Anglo-Saxon countries with their traditionally more liberal approach to economic development seem to pursue less stimulation policies aimed at specific companies. That is not to say that Anglo-Saxon countries do not create circumstances that are beneficial for local companies. For instance, although the Dutch government is not leading when it comes to fostering national champions, it does use national champion policy instruments, like golden shares (KPN), and state aid (state guarantees for shipbuilding yards). Does the fact that the Dutch government is relatively nonactive towards national champions compared to neighbouring countries imply a welfare loss for the Dutch economy? Conversely, does the fact that other countries are more actively fostering companies generate welfare gains for those countries, and a welfare loss for us? These questions are addressed in this report.
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