As economists and policymakers increasingly question longstanding neoliberal orthodoxy, and with geopolitical tensions generating new threats to economic security, efforts by governments to take a proactive role in shaping the economy by intervening in selected industries has been gaining steam. But industrial policy’s record is mixed, particularly in the West, raising questions about whether – and in what form – it is useful.
As economists and policymakers increasingly question longstanding neoliberal orthodoxy, and with geopolitical tensions generating new threats to economic security, efforts by governments to take a proactive role in shaping the economy by intervening in selected industries has been gaining steam. But industrial policy’s record is mixed, particularly in the West, raising questions about whether – and in what form – it is useful.