Blueprint

Sparking Europe’s new industrial revolution: A policy for net zero, growth and resilience

This Blueprint assesses what must be done to implement industrial policy in a way that will achieve overarching goals while minimising distortions.

Publishing date
03 July 2023
Authors
Philippe Aghion Ketan Ahuja Chad P. Bown Uwe Cantner Chiara Criscuolo Antoine Dechezleprêtre Mathias Dewatripont Ricardo Hausmann Guy Lalanne Ben McWilliams Dani Rodrik Simone Tagliapietra Alessio Terzi Cecilia Trasi Laura Tyson Reinhilde Veugelers Georg Zachmann John Zysman
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Summary

Industrial policy has for a long time raised difficult questions for policymakers to unpick. What justifications are there for government intervention in market mechanisms, and how and to what extent should governments intervene? What are the pros and cons of picking ‘winners’ for support? These questions have made a powerful return in the wake of the COVID-19 pandemic and geopolitical uncertainty, and because of the pressing need to move to net-zero emission economies. In addition, the European Union is reviving its industrial policy in the context of support given to companies in the United States under the US Inflation Reduction Act. This volume, produced with financial support from the European Climate Foundation, assesses what must be done to implement industrial policy in a way that will achieve overarching goals while minimising distortions.

To download the full e-book, please use the download button in the top-left of the page. To download specific chapters separately, click the links in the table of contents below. 

Table of contents

  1. Industrial policy in Europe: past and future | Simone Tagliapietra and Reinhilde Veugelers
  2. An innovation-driven industrial policy for Europe | Philippe Aghion
  3. Productivism and new industrial policies: learning from the past, preparing for the future | Dani Rodrik
  4. Industrial policy and technological sovereignty | Uwe Cantner
  5. Cooperation or conflict? A transatlantic look at whether industrial policy will produce solutions or generate unmanageable conflicts | Laura Tyson and John Zysman
  6. Green industrial policy: the necessary evil to avoid a climate catastrophe | Alessio Terzi
  7. Industrial strategies for Europe’s green transition | Chiara Criscuolo, Antoine Dechezlepretre and Guy Lalanne
  8. A more globally-minded European green industrial policy | Ricardo Hausmann and Ketan Ahuja
  9. Europe’s green industrial policy | Simone Tagliapietra, Cecilia Trasi and Reinhilde Veugelers
  10. Smart green industrial policy | Ben McWilliams and Georg Zachmann
  11. Industrial policy for electric vehicle supply chains and the US-EU fight over the Inflation Reduction Act | Chad Bown
  12. A new pharma industrial policy for Europe? Lessons from COVID-19 | Mathias Dewatripont

Authors

Headshot of Ricardo Hausmann

Ricardo Hausmann

Founder and Director, Harvard’s Growth Lab

Rafik Hariri Professor of the Practice of International Political Economy, Harvard Kennedy School

Dani Rodrik

Ford Foundation Professor of International Political Economy, John F. Kennedy School of Government, Harvard University

Laura Tyson

Director - Institute for Business and Social Impact, Haas School of Business, University of California, Berkeley

Theme
Energy and climate policy
Keyword
European Green Deal Covid-19 climate change industrial policy
Language
English

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