Industry and Policy

Industrial policy has been the victim of various definitions reflecting different views about the role, extent and appropriate form of state intervention in the economy. At the one extreme, interventionists favour an active role with governments intervening throughout the economy at the industry and, ultimately, the firm level. The other extreme takes a laissez-faire approach leaving everything to market forces. In the UK, these alternative views about industrial policy have been reflected in continuing controversy between the major political parties.