Emerging issues in implementing industrial policy in developing economies

This chapter sketches out some of the major issues that developing economies face in implementing industrial policy in the new global economic landscape. It highlights that: i) empowered institutions and performance-based incentives help to deal with the risks of capture ii) promotion of innovation, start-ups and cluster development are increasingly used as mechanisms to support production upgrading and transformation iii) empowering regions increases the effectiveness of industrial policy iv) sustainable development opens opportunities for developing countries, but specific policy measures are needed v) monitoring and evaluation mechanisms need to be in place to improve policy implementation and design.