The new era of industrial policy: Evidence and implications

Industrial policy interventions have surged since 2020, increasingly driven by geopolitical concerns. The New Industrial Policy Observatory reveals over 36,000 interventions globally since 2009, enabling a systematic analysis of patterns and impacts. Industrial policies can improve products' competitiveness in some cases, but the impact is short-lived and there is no evidence of self-sustaining virtuous cycles. Effective industrial policy requires careful design, strong governance, and multilateral cooperation to manage spillover effects.