The Economics of National Champions

"During the last decades we have observed what many would characterise as globalisation, or, more precisely, an increase in globalisation. One important element in this development is the transition from national towards international markets. In Europe the establishment of the internal market in 1992 gradually changed many markets from national to European markets. Domestic firms are therefore less protected in their home market than we observed, for example, in the first decades after World War II. This raises numerous policy questions. I have chosen to focus on one particular question that has been debated in many European countries in recent years: should each nation actively promote own national champions?"