Industrial policy matters from "summary" of The Industrial Policy Revolution II by J. Esteban,J. Stiglitz,Justin Lin Yifu
Industrial policy matters because it is essential for shaping the economy in a way that promotes sustainable and inclusive growth. By guiding the allocation of resources, industrial policy can influence the development of key sectors and technologies that are crucial for long-term prosperity. This policy tool plays a critical role in addressing market failures and ensuring that the benefits of economic growth are shared more equitably across society. Moreover, industrial policy is not just about picking winners and losers in the market. It is about creating an enabling environment that encourages innovation, entrepreneurship, and investment. By providing targeted support to strategic industries and fostering the conditions for them to thrive, industrial policy can help drive productivity gains and enhance the competitiveness of the economy as a whole. At the same time, industrial policy ...
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