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| The Common Task Improvement of Regional Economic Structureʺ is one of the most important instruments for the Reconstruction Eastʺ. Herein the federal states have an extensive flexibility to define their own kind of industrial policy. Due to their structural deficits this paper is focused on the federal states in East-Germany. A decrease in the budget constrains the governments to improve efficiency of subsidies. However there is one way to solve this problem: change unselective government aid to regional as well as sectoral government aid. This paper shows that there is only one federal state which has applied this kind of policy: the federal state of Brandenburg. -- common task improvement of regional economic structure ; investment assistance ; economic structure |
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