Our biggest economic problems — poverty, inequality, exclusion, and insecurity — have many roots. But they are continually reproduced and reinforced in the production process, as a consequence of employment, investment, and innovation patterns.
Industrial policy explicitly targets these aspects of economic activity — transforming them to achieve public goals. It stimulates innovation, productivity, and economic growth by changing incentives of private-sector actors. While industrial policy has traditionally focused on promoting manufacturing industries, its tools are increasingly being directed towards a wide variety of industries connected to the energy transition, creating good jobs, and addressing regional disparities.
The old economics of industrial policy was pessimistic, believing that government intervention would interfere with the efficiency of markets. Reimagining the Economy focuses on the new economics of industrial policy. We study the ways in which both governments and markets play a role in a successful economy.
What we're doing
- Conducting research: Investigating the ways industrial policy is being implemented and transforming economic activity around the world.
- Convening experts: Bringing together academic experts and experienced policymakers from around the world to take stock of the range of experiences in industrial and productive development policies.
- Working with practitioners: Including industrial policy practitioners in our team as research fellows and practitioners in residence.