Development and Modern Industrial Policy in Practice provides an up-to-date analysis of industrial policy. Modern industrial policy refers to the set of actions and strategies used to favor the more dynamic sectors of the economy. A key aspect of modern industrial policy is embedding private initiative in a framework of public action to encourage diversification, upgrading, and technological dynamism to achieve development in the twenty-first century.

The book reviews key questions that policymakers ask about industrial policy, such as: who selects sectors; what is the rationale for sector selection; what are the main tools to promote sectors?, what is the role of human capital; and what are the mechanisms for monitoring and evaluation? Expert contributors discuss how to undertake industrial policy effectively and examine the experiences of Australia, the EU, the Republic of Korea, Malaysia, and the US.

Policymakers, multilateral development institutions, and scholars will find the discussions on industrial policy, structural transformation, economic diversification and upgrading, and capabilities to be useful and practical.

Contributors F. Block, J.-M. Chang, K. Farla, J. Felipe, F. Guadagno, C.A. Hidalgo, M.R. Keller, M.H. Khan, K. Lee, J.Y. Lin, C. Long, W.F. Mitchell, C. Rhee, T. Siew Yean, B. Verspagen, Y. Wang, X. Zhang

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Edited by Jesus Felipe, Advisor in the Office of the Chief Economist, Economic Research and Regional Cooperation Department, Asian Development Bank, Manila, Philippines

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