Industrial and innovation policy once evoked images of governments picking winners or protecting national champions. Today, the challenges are far more complex as climate change, digital disruption and geopolitical fragmentation demand new forms of statecraft. This chapter argues that policies of the twenty-first century must move beyond static blueprints and embrace adaptability, inclusivity and resilience. It explores how traditional tools such as subsidies, procurement and regulation are being reshaped into mission-oriented strategies that link technological progress to societal goals. At the same time, it warns of the risks of overreach, capture and widening inequalities if policies ignore institutional and systemic weaknesses. Through the lens of emerging economies, the chapter shows that rethinking policy is not only about catching up with advanced countries but about crafting development pathways that reflect local strengths while responding to global transformations.