Generating policy capacity in emerging green industries: The development of organic farming in Denmark and Australia

In many cases, when governments commit themselves to green policy targets, they also imply the development of 'green' industries to reach those targets. But, how do governments foster the development of such industries? This is particularly relevant because such industries are often in a very early stage of their evolution. Taking the case of organic farming, we argue that the state's ability to foster 'policy capacity' is critical to the emerging development trajectories of such industries. Focussing on the state's ability to generate policy capacity in the Danish and Australian organic food sector, this article suggests that policy capacity develops as a result of high levels of state and associative capacity and the ability to create conditions favourable for corporatist deliberation. The comparative study undertaken demonstrates that these conditions are met in the Danish case, resulting in a high level of policy capacity. By contrast, Australia suffers from a low level of policy capacity as a result of low state and associative capacity and lack of corporatist deliberation.