The return of industrial policies
Policy considerations in the current context
The paper contributes to renewed debates about industrial policy in the context of
recent initiatives in several OECD economies. It discusses the pros and cons of industrial
policies motivated by environmental, national security and place-based/inclusiveness
objectives. The paper also considers implementation and design issues, and how to
respond to industrial policies in other countries. There are well-grounded economic,
social and environmental justifications for some industrial policies. However, there
are legitimate concerns that the benefits of such policies could be limited and the
costs high. This mainly relates to measures curbing domestic and international competition
and the practical and political challenges in designing and implementing effective
measures. Thus, while governments may want to experiment with future and welfare-oriented
industrial policies, they should exert moderation in scope, exercise caution in design
and implementation, and be mindful of possible negative international implications.
Published on May 31, 2024
In series:OECD Economic Policy Papersview more titles