In Europe and North America there are increasing calls for an industrial policy that would foster innovation and technological development. The advocates of industrial policy warn that without active government support national firms will succumb to unfair foreign competition and that there will...

The period from 1950 to 1974 was one of exceptional economic progress, particularly in manufacturing. This article examines how some of these developments have altered the objectives and methods of formulating industrial policy in western countries. Following a brief discussion of sector-wide...