industrial policy
Government manufacturing strategy
Industrial policy is government strategy to promote or protect specific industries, typically through subsidies, tariffs, tax incentives, or regulations.
The term often appears in debates about whether governments should actively shape economic development or let markets decide: Japan's industrial policy favored electronics and automobiles.
Critics associate it with picking winners and losers; proponents argue it builds national competitiveness.
Financial aid from government
- tariffsTaxes on imports
- tradeExchange of commodities
- protectionismShielding local producers
- comparative advantageLowest opportunity cost production
sectoral · diversification · import substitution · trade barriers · dumping · quotas · trade deficit · mercantilism
Public authority involvement
- nationalizationGovernment acquisition of industry
- privatizationState sells public assets
- central planningGovernment directs all production
- economic planningCoordinated allocation of resources
public sector · bureaucracy · lobbying · legislation · ministry · agency · implementation · stakeholders
Creating something original
- modernizationAdoption of current methods
- research and developmentSystematic innovation work
- R&DCreating new products
- commercializationProfit-driven market introduction
patents · intellectual property · clusters · upgrading · leapfrogging · catch-up · value chain · productivity
Industrial production facility
- automationSelf-operating system design
- roboticsAutomaton design field
- plantBotanical organism
- machineryCollective mechanical equipment
assembly line · reshoring · onshoring · supply chain · localization · value-added · capital goods · manufacturing hub
Detailed plan forward
- blueprintDetailed technical drawing
- frameworkUnderlying support system
- long-term planningOrganizing for future goals
- prioritizationRanking by importance
targeting · benchmarking · foresight · sequencing · phasing · conditionality · sunset clause · evaluation
subsidies
Financial aid from government
- tariffsTaxes on imports
- tradeExchange of commodities
- protectionismShielding local producers
comparative advantage · sectoral · diversification · import substitution · trade barriers · dumping · quotas · trade deficit · mercantilism · autarky
state intervention
Public authority involvement
- nationalizationGovernment acquisition of industry
- privatizationState sells public assets
- central planningGovernment directs all production
economic planning · public sector · bureaucracy · lobbying · legislation · ministry · agency · implementation · stakeholders · coordination
innovation
Creating something original
- modernizationAdoption of current methods
- research and developmentSystematic innovation work
- R&DCreating new products
commercialization · patents · intellectual property · clusters · upgrading · leapfrogging · catch-up · value chain · productivity · competitiveness
factory
Industrial production facility
- automationSelf-operating system design
- roboticsAutomaton design field
- plantBotanical organism
machinery · assembly line · reshoring · onshoring · supply chain · localization · value-added · capital goods · manufacturing hub · reindustrialization
roadmap
Detailed plan forward
- blueprintDetailed technical drawing
- frameworkUnderlying support system
- long-term planningOrganizing for future goals
prioritization · targeting · benchmarking · foresight · sequencing · phasing · conditionality · sunset clause · evaluation · monitoring
- economic policyfiscal discipline, fiscal stimulus, fiscal restraint, tariff, tax cuts
- market economicsmonopoly, oligopoly, perfect competition, duopoly, monopsony
- public policypublic administration, public affairs, think tanks, defense budget, public housing
- European Economieseconomic growth, economic reform, market economy, economic miracle, economic integration
- economic lawantitrust law, tax code, commercial law, corporate law, trade law
- GDR policiesplanned economy, state ownership, Berlin Wall, travel restrictions, collectivization
industrial policylaissez-faire
Noninterference in commerce
free market · non-interventionism · neoliberalism · deregulation · privatization
policy, industry, industrial, policies, industrialist, industrialization, policy-making, industrially, industrialism