Beyond the 'magic of the market'. The slow return of industrial policy (but not yet in Italy)

The historical emergence of industrial and technological capabilities in major countries has in most cases been associated with a strong industrial policy by governments. In the last decades policies of advanced countries—Italy included—have relied on the ‘magic of the market’, abandoning any driving role of public action and resulting in a serious weakening of Italy’s industrial base. In order to reverse this decline, a return to industrial policies, written large—including technology policies, ambitious “mission oriented” programs, and direct State intervention -, is needed in Italy and Europe.