How to do industrial strategy

This paper sets out a practical approach to industrial strategy in the UK, focused on boosting private investment and productivity. It offers a comprehensive framework for policymakers seeking to boost private sector investment and productivity, drawing on decades of past experience and new analysis of what works. The paper considers the case for sectoral, technological and place-based approaches to industrial strategy, and proposes twenty concrete policy tools to help governments design and deliver effective interventions.

It proposes twenty policy tools spanning sectors, technologies, places, funding and state capability, with a clear roadmap for policymakers. Key proposals include sector deals for high-potential service industries, reform of planning rules to unlock urban productivity, and greater use of ‘Catapults’ and Challenge Funds to support emerging technologies. The paper also argues for better coordination of public funding for innovation, new roles for business schools, and smarter ways to scale up high-growth firms. Importantly, it addresses the growing overlap between industrial policy and national security concerns, proposing a new approach to evaluating interventions that combines economic and strategic considerations. As the UK looks to raise investment and tackle regional inequalities, this research offers a clear roadmap for turning the rhetoric of industrial strategy into results.