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The core of a policy for accelerating economic growth is a combination of knowledge accumulation and diversification of the productive structure. These two dimensions are the focus of the present article, which examines industrial policy experiences during the import substitution industrialization period; highlights the policies currently being applied in Latin America and the Caribbean and offers a typology of the strategies underlying them; presents the main lines of action and policy instruments; and analyses issues of policy implementation and impact. The thesis is that, while policymaking capabilities have improved, a great deal of work is still needed on implementation and on the development of effective impact evaluation methodologies. Proper evaluation will show whether industrial policies have a role to play in the region.
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