State intervention is back
Industrial strategy needs more than just innovation
Saskia Abdoh
Britain has an industrial strategy. State intervention is back. Incentivising R&D and skills training have always been accepted as part of the government’s remit. On the other hand, government support of specific sectors— typified by Labour’s failed industrial strategies of the 1970s—has fallen out of favour.
However, if we are to hold the state accountable for its failures, we should also recognise its successes. For example, without substantial government support, it is highly unlikely that successful UK industries, such as pharmaceuticals, would have grown to their current scale.