This Handbook is designed as a practical resource for policymakers involved in the design and implementation of industrial strategies and industrial policy instruments. It is organised into two complementary parts.
Industrial Policy Handbook
From Strategy Design to Implementation
In this Handbook, an industrial strategy is defined as a consistent and articulated group of industrial policy instruments aimed at achieving specific policy objectives. These objectives may be national, sectoral, mission‑oriented, or focused on particular technologies, and be flexible enough to respond to rapidly global challenges. The first part introduces the four core phases of designing an effective industrial strategy, the overarching framework that guides industrial policy:
1. Set the strategic orientation by setting specific goals to strengthen the legitimacy of the strategy and the policy interventions aimed at achieving them.
2. Coordinate across the economy and sectors to ensure that the industrial strategy is coherent with existing strategies across ministries and sectors to improve policy coordination.
3. Ensure effective delivery by putting in place robust governance, operational capacity and implementation mechanisms.
4. Evaluate the strategy during and after implementation and, if needed, adapt the strategy and the individual policy instruments that contribute to it.
The second part focuses on industrial policy instruments used to implement an industrial strategy. In this Handbook, industrial policy refers to public interventions intended to structurally improve the performance of the domestic business sector. These instruments translate strategic priorities into concrete actions without distorting markets. A key challenge for policymakers is choosing the most appropriate instrument to address a specific policy problem. Part II breaks the selection and design process into five practical phases:
1. Rationale - Identify the market failure and select the instrument best suited to address it.
2. Scope - Define the breadth of the intervention, including which firms to target and assessing whether it is additional.
3. Shape - Specify the form and extent of support
4. Selection - Set criteria for choosing projects or beneficiaries to ensure transparency and alignment with objectives.
5. Evaluation – Assess the effectiveness, whether the instrument is working as intended and adjust when necessary.
Throughout the Handbook, each phase in Part I and Part II includes a checklist, actions and peer examples. Each of these elements are modular, and policymakers can use them selectively. At the end of the Handbook, readers will find a “Learn” section with additional materials and databases.
