Under the right circumstances

Under the right circumstances, industrial policy can deliver tangible economic gains and strengthen economic resilience. By being focused on addressing market failures—such as by fostering innovation in sectors with knowledge spillovers (think of green technology) or enabling regional clustering (think of Silicon Valley)—it can boost productivity and incomes However, even the best-intentioned policies can backfire if poorly coordinated. Powerful interventions, such as subsidies or tax breaks, that expand production and lower costs in a particular sector in one country will have the opposite effect in another, undermining comparative advantages and creating inefficiencies. สล็อต