In this paper we try to discuss why the hype of PPP has arrived at the centre of industrial and innovation policy debates and does it significantly change the discourse. Our interest is to contextualize and open-up the concept of PPP in the industrial and innovation policy research and policy discourse from a historical perspective. We show that in the history of development policies since the WW II we have in fact two explicit models of governance of industrial policy where the concept of PPP has been given the central role and expected to increase development, policy and administrative capacities of developing economies: the developmental state concept used in East Asia and the Post-Washington Consensus approach gaining ground across the developing regions. We are tackling two main questions: what are the normative and institutional characteristics of the governance models of industrial polices and how do these reflect the ideas of PPP?; how to contextualize, explain and assess the performance of these governance models from the perspective of public administration and industrial policy concerns and goals? Building on the literature of political economy, industrial policy and public administration we argue that in the context of industrial policy, as a sectoral example where PPP arrangements are seen relevant, the evaluation of governance model is fundamentally connected with sectoral policy goal – to influence the economic specialization of private sector into activities that foster structural techno-economic change and catching up. This creates the broader (macro level) institutional and normative context where the policy instruments and its’ implementation mechanisms should be assessed. The paper should also add to PPP literature as it discusses contextual-historical (technological development, diffusion and influence of fashion and ideas) political and economic features that influence the use of PPP and its outcomes. Through the comparison of East Asian and Central and Eastern European economies we discuss the reasons of this change in the PPP and policy coordination approach. We show that the neo-liberal political-economy developments have closed the window for returning to the old governance paradigms. Also, we analyze how this change affects the legitimacy of the state, evolution of state policy and administrative capacities, and criteria for assessing the effectiveness of state policy efforts.
