With the US Innovation and Competition Act of 2021, America is fully embracing industrial policy as the all-encompassing solution to a wide range of economic, social, and strategic problems. But all of the objectives articulated in the bill could be achieved more effectively by other means.
WASHINGTON, DC – When a government sets out to “pick winners” and support designated industries, products, or firms through subsidies, tariff protections, tax breaks, and other measures, it is pursuing an industrial policy. For advocates of this approach, the idea is that the state should step in to boost “particular industries that are considered strategically important” when it is expected that markets and the private sector will not do so on their own.
WASHINGTON, DC – When a government sets out to “pick winners” and support designated industries, products, or firms through subsidies, tariff protections, tax breaks, and other measures, it is pursuing an industrial policy. For advocates of this approach, the idea is that the state should step in to boost “particular industries that are considered strategically important” when it is expected that markets and the private sector will not do so on their own.