Economy
Industrial Policy
Definition
Government intervention to promote specific industries or sectors through subsidies, tariffs, tax incentives, R&D funding, or procurement preferences.
Explanation
Once considered discredited in Western economics, industrial policy has made a dramatic comeback. The US CHIPS Act ($52B for semiconductors), IRA (green energy subsidies), and EU Chips Act represent a global turn toward active state intervention. East Asian economies (Japan, South Korea, China) never abandoned industrial policy.