MINDSETMonths to result

Subsidy Framework

Government support for emerging industries

Problem it solves

limiting beliefs

Best for

Emerging industries with high growth potential

Not ideal for

Mature industries with low growth potential

Overview

Why this framework exists

The Subsidy Framework describes the phenomenon of government support for emerging industries, such as subsidies, tax incentives, and grants. This framework highlights the importance of government support in driving growth and development in emerging industries.

Core principles

3 total
  1. Government support can drive growth and development in emerging industries
  2. Subsidies can be awarded directly to firms or indirectly through tax incentives or grants
  3. Subsidies can add instability to an industry, making it dependent on political decisions

Steps

3 steps
  1. Identify opportunities for government support
    Develop a strategy to identify opportunities for government support, such as subsidies, tax incentives, or grants
    Pro tipUse lobbying and advocacy to influence government policy and secure support
    WarningBe aware of the risks of dependence on government support and the potential for instability
  2. Secure government support
    Develop a strategy to secure government support, such as applying for grants or tax incentives
    Pro tipUse data and research to demonstrate the potential benefits of government support
    WarningBe prepared to address concerns and objections from government officials and other stakeholders
  3. Manage the risks of government support
    Develop a strategy to manage the risks of government support, such as dependence on political decisions
    Pro tipUse scenario planning to anticipate and prepare for potential future scenarios
    WarningBe prepared to pivot or adjust course in response to changing government policies or priorities

Checklist

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Examples

2 cases
Solar energy industry

The solar energy industry has received significant government support, highlighting the importance of subsidies in driving growth and development

OutcomeThe industry's growth and development have been driven in part by government support, but also raise concerns about dependence and instability
Digital watches industry

The digital watches industry has received significant government support, highlighting the importance of subsidies in driving growth and development

OutcomeThe industry's growth and development have been driven in part by government support, but also raise concerns about dependence and instability

Common mistakes

3 traps
Overreliance on government support
Overreliance on government support can lead to dependence and instability
Lack of lobbying and advocacy
Failing to lobby and advocate for government support can lead to a lack of access to resources and opportunities
Failure to manage risks
Failing to manage the risks of government support can lead to instability and dependence

Origin story

How this framework came to be

The concept of subsidies has been observed in various industries, including the solar energy industry, where government support has played a crucial role in driving growth and development.

Source

Traced to primary
Source · BOOK
Competitive Strategy
Michael E. Porter · 1980
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