concept

industrial policy

Also known as: strategic industrial policy, industrial policies, modern industrial policy

Entities (2)

European Union

European Union

The European Union is actively redefining its industrial policy to prioritize competitiveness, sovereignty, and technology gap closure, as evidenced by its strategic shift from competition-focused regulation to more interventionist frameworks [1], [2], and [3]. This evolution is documented through historical shifts in policy subordination [4], [5], and recent institutional reports like the 2024 Draghi Report [6], [3]. — 13 supporting facts

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European Commission

European Commission

The European Commission is the primary governing body responsible for shaping and implementing the European Union's industrial policy, as evidenced by its prioritization of the topic under Ursula von der Leyen [1], [2]. Furthermore, the Commission's regulatory authority and historical approach to industrial policy are central to how this policy is managed within the EU framework [3], [4]. — 4 supporting facts

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Facts (20)

Sources

The EU's Open Strategic Autonomy and the challenge of ... globalpolicyjournal.com Eugenia Baroncelli · Global Policy Journal Aug 27, 2025 8 facts

claimGermany shifted towards tighter integration of European Union industrial policy following a series of Chinese acquisitions that culminated in the 2016 takeover of Kuka, a major German robotics company.

referenceThe European Union has developed a consensus on pursuing more assertive trade and industrial policies, characterized by competitiveness, drastic simplification, targeted support for innovative EU partnerships, and protection from unfair foreign competition, as outlined in the 2024 Draghi Report, the 2025 Competitiveness Compass, and the 2025 Clean Industrial Deal.

claimHistorically, the European Union's industrial policy has been subordinated to its competition policy, despite the European Commission's vocal support for competitiveness.

referenceThe 2009 Lisbon Treaty established that EU industrial policy decisions must be made by the European Parliament and the Council using the co-decision procedure.

claimEuropean Union competitiveness is defined as being at the crossroads of domestic industrial policy and foreign trade policy, and has been used as a synonym for growth-productivity or as an equivalent of trade performance, such as revealed comparative advantage and market shares.

accountFrom the 1980s until the mid-2010s, the subordination of industrial policy to competition policy led the European Economic Community (EEC) and later the EU to prioritize a level playing field over interventionist support for industrial champions.

claimEU industrial policy is regulated through shared competence between the European Union and Member States via the co-decision procedure, whereas EU competition policy is based on exclusive EU competence, granting the European Commission greater maneuverability over Member States.

claimThe 'China shock' (Autor et al. 2013), the 2016 Brexit vote, and the policy shifts of the United States during Donald Trump's first presidential term pressured the European Union to redefine its trade and industrial policies.

Strategic Rivalry between United States and China swp-berlin.org SWP 4 facts

claimThe European Union views cooperation, competition, and self-protection through a modern industrial policy designed to close the technology gap as legitimate modes for a policy of self-assertion.

claimIndustrial policy, market access, and data security are high on the agenda of the European Commission under the leadership of Ursula von der Leyen.

perspectiveThe European Union views cooperation and competition as legitimate modes for a policy of self-assertion, alongside self-protection through a modern industrial policy designed to close the technology gap.

claimThe European Commission, led by Ursula von der Leyen, prioritizes industrial policy, market access, and data security as key agenda items.

The United States and China's complex cooperation and rivalry ... eastasiaforum.org East Asia Forum Feb 1, 2024 1 fact

claimChinese policymakers plan to utilize industrial policies to ascend the value chain and sustain economic growth, while Beijing adopts an active fiscal policy involving increased government expenditure on major initiatives.

Open Source Impact Study - OpenForum Europe openforumeurope.org OpenForum Europe 1 fact

claimThe Register reported on 13/09/2021 that the EU open source study highlights economic benefits but suggests the Union is 'on the back foot' with industrial policy.

The EU's Evolving Approach to Open Strategic Autonomy: a Critical ... celis.institute Professor Sergio Mariotti · Celis Institute Feb 25, 2025 1 fact

claimOpen Strategic Autonomy has emerged as a defining concept in European Union policy, characterized by two key dimensions: the central role of industrial policy and the integration of competitiveness with sovereignty and security concerns.

Transatlantic Trade, the Trump Disruption and the World ... - ECPS populismstudies.org Kent Jones · European Center for Populism Studies Jan 20, 2026 1 fact

referenceBernard Hoekman, Betül K. O. Taş, and Rohit Ticku authored a 2025 working paper regarding plurilateral approaches to managing cross-border industrial policy-related spillovers.

The European Union's Strategic Autonomy, Transatlantic Shifts and ... frictions.europeamerica.de Oleksandr Kandyuk · Frictions Oct 1, 2025 1 fact

claimMario Draghi, in his 2024 report on EU competitiveness, emphasized the necessity of overcoming single market fragmentation and implementing a coherent industrial policy.

The price of protectionism: Understanding the economic tradeoffs of ... statestreet.com Ramu Thiagarajan, Jennifer Bender, Michael Metcalfe · State Street 1 fact

claimWhen tariffs are combined with strategic industrial policy—such as investment in technology, education, and infrastructure—they may serve as catalysts for long-term economic transformation.

Research & Publications – Home - MIT Sites sites.mit.edu Michael Mehling · MIT 1 fact

claimThe European Union's Carbon Border Adjustment Mechanism is unlikely to be the only Border Carbon Adjustment, as various jurisdictions are contemplating similar measures to support ambitious climate change mitigation policies, national security, and industrial policy.

U.S. tariff outcomes dependent on trading partner responses dallasfed.org Federal Reserve Bank of Dallas May 13, 2025 1 fact

perspectiveSome economists advocate for increasing tariffs beyond the 25 percent consumption-maximizing level and the 70 percent revenue-maximizing level, arguing that higher tariffs serve as an industrial policy to bolster domestic manufacturing through import substitution.