The Resurgence of Industrial Policy and What it Means for Canada

For several decades now, the idea that governments should direct industrial policy interventions to specific sectors of the economy has been viewed with more than healthy skepticism. However, the consensus against industrial policy stands in stark contrast to pervasive government practices. While the rationales and approaches have varied across countries and over time, the reality is that governments have long targeted industry- and region-specific measures to promote their economies. The truth is that everyone uses industrial policy – some more successfully and some more openly than others. The goal of this article is to examine these global trends in industrial policy and what they mean for Canada. We find that Canada has a long history of industrial policy interventions, and we conclude that having policy that is truly neutral across sectors is inconsistent with the highly heterogeneous nature and policy requirements of different sectors