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DN Debate: Warning for the return of failed industrial policy

In a new DN Debate article, House of Innovation Affiliated Research Fellow, Professor Karl Wennberg - together with other leading innovation scholars - issue a warning regarding the return of failed industrial policy.

According to them, large-scale covert business subsidies worked poorly in the 1970s. Yet, despite the lack of scientific support, the pandemic and the war in Ukraine have led to a renaissance of state industrial policy. This is problematic because history is full of wide-ranging policy plans that have yielded unintended and sometimes disastrous results.

In the new book "Questioning the entrepreneurial state", 30 leading international researchers show that scientific support for large-scale industrial policy is weak. It risks distorting healthy competition for the economy, and is a form of disguised business support reminiscent of the 1970s.