Analyzing industrial policy portfolios

Industrial policy has regained political attention due to the challenges associated with global market integration, technological changes, and the need for sustainable transformation. However, the lack of a consistent understanding of industrial policy hampers systematic comparisons. This paper develops a novel concept of industrial policy portfolios that captures different dimensions of industrial policy outputs across countries and over time. We illustrate this approach by comparing the policy dynamics in the United States and Germany over the last four decades and show that despite similar dynamics of policy growth, the countries display pronounced variation in the areas and instruments they prioritized.