Industrial policy has risen to prominence on the national agenda in the U.S. and other advanced industrial economies. This marks a significant departure from recent economic trends and has reignited a longstanding debate in which we were both actively engaged over three decades ago. In the U.S., the CHIPS and Science Act, the Inflation Reduction Act (IRA), and the Bipartisan Infrastructure Act have established noteworthy national security and climate objectives. Each of these acts utilizes subsidies, tax credits, loan guarantees, …