Staatliche Unterstützung einzelner Firmen oder ganzer Branchen ist wieder salonfähig. Sei es zur Stärkung der Versorgungssicherheit, strategisch bedeutender Branchen oder zur Bewältigung des Klimawandels: Stets wird versucht, die Wirtschaft in gewünschte Bahnen zu lenken. Eine neue...

Industrial policy has returned to centre stage after decades of neglect or worse, yet its revival is deeply ambivalent. This chapter argues that effective and desirable industrial policies rests on the alignment of three mutually reinforcing conditions, namely, first, public measures shaping the...

Industrial policy interventions have surged since 2020, increasingly driven by geopolitical concerns. The New Industrial Policy Observatory reveals over 36,000 interventions globally since 2009, enabling a systematic analysis of patterns and impacts. Industrial policies can improve products'...

Industrial policies can be effective where markets fail, including in supporting green transition. Industrial policies often pursue multiple conflicting objectives that must be prioritized. To counteract discrimination against foreign interests, industrial policies should include competitive...

Semiconductor supply is subject of sizable subsidy schemes in the US, the EU, China, Japan, Korea, and India. Chip imports are concentrated in few countries, with the EU accounting for less than 5 percent of worldwide chip sales. Chips are highly heterogeneous products that serve different...

The resurgence of subsidies and industrial policies has raised concerns about their potential inefficiency and alignment with multilateral principles. Critics warn that such policies may divert resources to less efficient firms and provoke retaliatory measures from other countries, leading to a...

In proposing industrial policies to promote development-enhancing upgrading, both the Middle-Income Trap (MIT) and Global Value Chain (GVC) literatures imply a "technocratic" approach that matches a given technical challenge to the right policy instrument. This paper suggests that, apart from...

In an era of fragmented global production and domestic decentralization, middle-income countries confront the complex challenge of industrial upgrading. While national governments remain central to industrial policy design and funding, upgrading unfolds through multi-level interactions between...

Emerging economies confront unprecedented challenges mobilizing finance for green industrial transitions while maintaining development trajectories. This paper examines implementation effectiveness across India, South Africa, Brazil, and Indonesia-major economies representing diverse political...

This study examines the role of science and technology finance (S&TF) and Industry 4.0 innovations in promoting sustainable transformation in China's copper mining industry, with a focus on reducing carbon emissions. Using panel data from 30 Chinese provinces spanning 2011 to 2020, we apply...

Local content policies (LCPs) are key instruments of industrial policy used by middle-income countries (MICs) to capture segments of global value chains (GVCs). While, in principle, LCPs are very similar, in practice, they are highly diverse. What to prioritize, how to measure it, while...

Canada's strategy for its commitment to substantially increasing defence spending over the period to 2035 will face challenges; its ability to have its defence industrial base to fill that demand is impacted by Canada's existing capacity; in an innovation-intensive era defined by machine...

Using Chinese firm-level trade data combined with global anti-dumping (AD) and countervailing duty (CVD) investigations, we uncover a previously overlooked cost of industrial policy under WTO agreements. At every stage of AD/CVD investigation, subsidies significantly raise the probability of...

Space-enabled technologies underpin communications, navigation, Earth observation, and critical infrastructure, but widely cited estimates of the space economy often rely on proprietary classifications or revenue tallies that abstract from production linkages. We develop a transparent,...

This essay examines the rise of "Green Deals" as large-scale state-sponsored active industrial policies to accelerate a transition toward climate neutrality. Building on the concept of mission-oriented innovation policy (MOIP), it documents how environmental and active industrial policies have...

Germany and Europe are often said to lag behind the United States and China in the development and application of artificial intelligence technologies and other complementary technologies. Scientific, technological and ultimately economic performance in the field of this technology bundle, often...

We examine the local effects of South Korea's large-scale place-based industrial policy of constructing industrial complexes in left-behind regions. We compile a novel dataset on industrial complex designations dating back to the 1960s and link it to administrative establishment surveys. Using a...

This paper examines the trade dimensions of the policy instruments employed by the United States to secure critical minerals supply chains. Drawing on policy statements, executive orders, tariff schedules, and six bilateral critical minerals agreements announced in 2025, it assesses how US trade...

Structural transformation is widely recognized as a key driver of productivity growth and economic development, with industrial policies often playing a crucial role in this process. However, the challenge of premature deindustrialization-where economies experience a decline in manufacturing's...

ndustrial policy has returned to the centre of economic governance, particularly in the high-tech sectors where positive network externalities in demand make market dominance self-reinforcing. This paper studies the welfare effects of an industrial policy targeting a sector with network...

This paper empirically assesses Saudi Arabia’s industrial policy using data on policy announcements matched to industry-level exports and firm-level outcomes. It first provides a comprehensive overview of the country’s industrial policy landscape, documenting the scale, timing, sectoral...

Is place-based green industrial policy effective? This paper examines the Inflation Reduction Act’s Energy Community provisions, which provide spatially targeted incentives for renewable energy investment. Using a difference-in-differences design with investment and job vacancy data, it shows...

Amidst slower global growth, a shifting labor market, and rising protectionism, governments around the world are increasingly turning to a once controversial policy. Industrial policy—the range of policy tools governments use to shape what an economy produces, rather than leaving it to markets...

Amid widening gaps in innovation and productivity growth, growing geopolitical tensions, and high ambitions for green and digital transitions, industrial policy has re-emerged as a central pillar of European strategy. This paper traces its evolution from post-war sectoral interventions through...

Aufgrund stark gestiegener Stromkosten möchte die deutsche Bundesregierung ab 2026 mit dem Industriestrompreis energieintensive Branchen entlasten, indem bis zu 50 Prozent ihres Verbrauchs auf 50 Prozent des Großhandelspreises (min. 50 €/ MWh) gedeckelt werden. Dieser reiht sich in eine...

This article analyses the rise of economic security as a new organising principle of European Union economic governance and examines the extent to which this concept is transforming the traditional model of European industrial and market policy. In the context of escalating geopolitical rivalry,...

Aufgrund stark gestiegener Stromkosten möchte die deutsche Bundesregierung ab 2026 mit dem Industriestrompreis energieintensive Branchen entlasten, indem bis zu 50 Prozent ihres Verbrauchs auf 50 Prozent des Großhandelspreises (min. 50 €/ MWh) gedeckelt werden. Dieser reiht sich in eine...