Dani Rodrik discusses the end of the manufacturing escalator – and what comes next.

To promote economic growth and inclusion, the tools of industrial policy must be oriented towards micro-, small- and medium-sized enterprises by targeting firms with high-productivity potential and addressing their growth constraints.

What have economists learnt about using industrial policy to promote economic development?

Creating well-paying and secure jobs for the future must require a holistic, collaborative strategy that addresses the structural deficiencies in the labour market

Low-income countries are disadvantaged by the introduction of new technologies due to being unable to access skilled employment opportunities

Research on industrial policy has taken off, leading to a better understanding of when such policies effectively harness economic development