IPD AI Insights

New Thinking in Industrial Policy: Perspectives from Developed and Developing Countries

11/01/2024
Policy Brief

For a long time, economic thought emphasized market efficiency over industrial policy, viewing government intervention in sectoral allocation and technology choice through industrial policy with skepticism. However, advances in economic theory and recent empirical evidence have challenged the assumption that markets are always efficient, particularly in areas affecting the pace and direction of innovation.

Overview

The conference on “New Thinking on Industrial Policy: Perspectives from Developed and Developing Countries” was held on November 1-2, 2024, at Columbia University. This second iteration of the conference followed the initial gathering in November 2023. The event was organized by Columbia University’s Initiative for Policy Dialogue (IPD), the Firms & Industrial Policy Idea Lab of the Center for Political Economy (CPE), the Center for Development Economics and Policy (CDEP), and the Institute of Global Politics (IGP).

The conference addressed the reemergence of industrial policy in policy frameworks across the United States, Europe, and various developing economies, while acknowledging the limitations in the current knowledge base guiding industrial policy implementation. Participants examined theoretical and empirical perspectives on industrial policy approaches in diverse economic environments, contributing to the ongoing scholarly discourse on this topic.