What is new in the new industrial policy? A manufacturing systems perspective

Abstract

This paper explores the recent evolution of manufacturing-related policies in leading OECD economies—Germany, Japan, the United Kingdom, and the United States. A novel framework, the industrial policy matrix, is introduced and then used to illustrate and compare policy approaches in terms of factor inputs, intervention levels, and degrees of coordination. While approaches adopted in different countries vary, reflecting their respective contexts, there is some evidence of a convergence on the effectiveness of particular programmes and organizations as well as on the characteristics that support the competitiveness of national manufacturing systems, including coordination and alignment of related policies, partnerships with industry, and longer-term investment and planning.

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