Industrial Policy and Economic Development

Industrial policy, which involves government actions and investments to shape the economy, is a significant shift in focus from neoliberalism to actively determine the growth of industries and job creation. The Biden administration is leading this shift, emphasizing the need for government intervention to influence industry composition. This approach aims to boost certain industries while phasing out others, focusing on sectors like clean energy and semiconductors. By aligning government policy with the intention to modify industry compositions, industrial policy becomes a key tool in economic development.