Rationales for Industrial Policy Based on Industry Maturity

This paper proposes a framework for thinking about industrial policy based on the maturity of a given industry in a country contrasted to the maturity of the industry in a global sense. Existing models for industrial policy tend to be based on the issues faced by emerging economies. By providing a coherent framework for rationales for industrial policy that spans both developed and developing economies, we can assess various industries and discuss the merits of providing support on a comparable basis. The paper provides examples of using the framework to discuss how it can be used and how it could be developed as a strategic tool for policy makers in leading economies.