Tilman Altenburg of the German Development Institute discusses a range of issues related to industrial policy in developing countries. He is promoting his book, but that aside, he highlights some important points in the debates on industrial policy and its role in accelerating development.
The book itself is sitting on my bookshelf, and I hope to post on it at some point. In my view industrial policy, or at least state intervention to promote development, remains vital in both rich and poor countries. If it is to be successful, its form must necessarily change as countries approach the technology frontier in particular industrial sectors, but the need for it never really goes away.
It will also tend to vary depending on the structure of industry, the nature of technology and institutional and political factors.