Industrial Policy is defined as the strategic effort by the state to encourage the development and growth of a sector of the economy. It refers to “any type of selective intervention or government policy that attempts to alter the structure of production toward sectors that are expected to offer better prospects for economic growth than would occur in the absence of such intervention” (Pack and Saggi, 2006).
This page brings together Industrial Policy debates, guidance, and country experience. Key take-aways include:
- There is an ongoing debate over which sectors, if any, Industrial Policy should target. Not all industries are equally useful for development; some can be good for mass employment, but allow little technological learning.
- Industrial Policy is a relatively demanding approach. To be effective, its design and implementation needs to take into account both a government’s capabilities and political will.
DCED publication
Introductory video
A Synthesis Note summarising current key issues and debates in Industrial Policy.
A two-minute video introducing the potential of Industrial Policy in Africa.
A summary of recent industrialisation trends in developing economies.
- The Entrepreneurial State: Debunking Public vs. Private Sector Myths, Mazzucato, 2018
- Strategic industrial policy and business environment reform: are they compatible?, DCED Working Paper, 2013
- Should industrial policy in developing countries conform to comparative advantage or defy it? A debate between Justin Lin and Ha-Joon Chang, 2009
- Course and teaching materials on green industrial policy, PAGE 2020
- Free advanced online training course on Industrial Policy, UNU-WIDER/ SDG Academy
- Enhancing the Quality of Industrial Policies (EQuIP), BMZ/GIZ/UNIDO, 2017
- Directing structural change: from tools to policy, German Development Institute, 2016
- Public and Private Sector Collaboration for Economic Transformation, ODI, 2016
- Global experiences with Special Economic Zones: Focus on China and Africa. World Bank, 2015
- The rise of the robot reserve army: automation and the future of economic development, work, and wages in developing countries, Center for Global Development, 2018
- Digitalisation and the Future of Manufacturing in Africa, SET/ODI, 2018
- DFID Innovation and Growth, Tilburg University, 2017
- The Changing Structure of Africa’s Economies, World Bank, 2017
- Industrial Competitiveness and Jobs. An Evaluation of World Bank Group Industry-Specific Support to Promote Industrial Competitiveness and Its Implications for Jobs, IEG, 2016

Africa
- Ethiopia:
- A natural experiment in industrial policy. Floriculture and the metal and engineering industries in Ethiopia, UNU-WIDER, 2014
- The Economic Implications of a Comprehensive Approach to Learning on Industrialisation (Policy and Managerial Capability Learning): The Case of Ethiopia, Go Shimada, 2013
- Structural transformation in Ethiopia: Evidence from cereal markets, IFPRI and EDRI, 2012
- Industrial Policy in Ethiopia. Discussion Paper, DIE, 2010
- Experimentation and Co-ordination as Industrial Policy: Examples from Ethiopia and Chile, UNU-WIDER, 2010
- Kenya: Scoping paper on Kenyan manufacturing, UNU-WIDER, 2014
- Mozambique: Economic transformation and job creation in Mozambique, ODI, 2017
- Nigeria: Industrial Development and Growth in Nigeria. Lessons and Challenges, UNU-WIDER, 2014
- Rwanda:
- Senegal: Scoping paper of industry in Senegal, UNU-WIDER, 2014
- Tanzania: The performance of the manufacturing sector in Tanzania, UNU-WIDER, 2014
- Tunisia: The perils of industrial policy. Evidence from Tunisia, Rijkers et al., 2014
- Uganda: Industrial Policy for Economic Transformation in Uganda, KAS, 2020.
Asia
- Bangladesh: Enhancing productivity in Bangladesh’s garment sector. Current policy and research debates, DFID, 2014
- China:
- Biting the bullet: China sets its sights on dominating sunrise industries, The Economist, 2017
- Global experiences with Special Economic Zones: Focus on China and Africa, World Bank, 2015
- India: The Implementation of Industrial Parks: Some lessons learnt in India, World Bank, 2014
- Mongolia: Strategic Directions in Industrial Policy in Mongolia, UNIDO, 2011
- Myanmar: Foreign Direct Investment and Economic Transformation in Myanmar, DFID/ODI, 2017
- Nepal: Structural transformation in Nepal. A diagnostic study submitted to DFID Nepal, ODI, 2014
- South Korea:
- Lessons for South Asia from the Industrial Cluster Development Experience in South Korea, ADB, 2015
- Korea’s export-oriented industrialisation. Trade and Industrial Policy, KDI School of Public Policy and Management, 2015
- Vietnam:
Photo credits: Rob Rickman/Rampant Fiji Limited