Industrial policy is back – it’s currently central to the agendas of both the EU and the UK. This resurgence comes amid a polycrisis marked by climate breakdown, social inequality, energy insecurity and geopolitical instability. And it reflects a wider shift. Governments across G20 countries are stepping in more actively to shape their economies, moving away from the idea that markets should be left to run themselves.
This is an important development. But current frameworks for industrial policy risk deepening the crises they are meant to solve.
