Innovation and Industrial Policy Program

The ability to develop, produce, and commercialize advanced technologies has become a decisive factor in determining a country’s position in the global economy. Innovation is no longer viewed merely as the outcome of private-sector activity or scientific advancement; it has evolved into a strategic issue shaped by institutional capacity, public policy, human capital, and industrial capabilities.

The Innovation and Industrial Policy Program examines how innovation ecosystems are created and how governments contribute to strengthening technological and industrial capabilities. The program focuses on how states can design effective policies to transform scientific knowledge and research capacity into economic, industrial, and strategic advantages.

In recent years, the renewed emphasis on industrial policy among many advanced economies reflects a significant shift in the way governments approach technological development. Competition in sectors such as semiconductors, clean energy, artificial intelligence, and advanced manufacturing demonstrates that markets alone may not always generate the long-term technological capabilities required for strategic competitiveness. As a result, governments are increasingly seeking more active roles in shaping innovation trajectories.

This program analyzes major instruments of industrial policy, including research and development support, public investment, production incentives, workforce development, domestic value chain creation, and collaboration among governments, universities, and private-sector actors. It also examines different models of innovation and industrial policy across major economies.

A central challenge in this field is finding the right balance between state support and market dynamism. Effective industrial policy should build competitive capabilities rather than replace market-driven innovation processes with government control. Therefore, studying countries that have successfully combined public investment, economic competition, and technological development represents a key component of this program’s research agenda.

This program seeks to address a fundamental question: in an era where technology has become a foundation of economic and geopolitical power, what determines whether a country remains merely a consumer of technology or becomes an influential actor capable of producing and shaping the technologies of the future?