Industrial Policy

Industrial policy is a form of government influence on business sectors and firms within an economy. Industrial policy has been both distinguished from and closely associated with other forms of government planning and intervention in the marketplace, such as a nation's competition policy, its trade policy, or its macroeconomic policy. Definitions of industrial policy vary. Many traditional definitions have been fairly narrow ones, such as the selective and strategic targeting of certain business sectors and/or firms over others to receive greater government support to improve or take advantage of their productivity and competitiveness. Definitions of industrial policy have also shifted somewhat in recent decades, and industrial policy often has been more broadly described as government interventions to support multiple or particular economic goals, such as ...