Both views are incorrect. Either, followed to its
logical outcome, would lead to the permanent erosion of a country‘s competitive capabilities.
On one hand, advocates of government help for industry frequently propose policies that would actually hurt companies in the long run and only create the demand for more helping.
On the other hand, advocates of a diminished government presence ignore the
legitimate role that government plays in shaping
the context and institutional structure surrounding
companies and in creating an environment that stimulates companies to gain competitive advantage