A new age of industrial policy is at hand. Governments have been increasingly intervening in the private sector as they have struggled to cope with the pandemic, rising geopolitical tensions, evolving economies, and climate change.For businesses, government policies are creating new costs and forcing them to rethink where they conduct research, make products, and source components and materials.
in the private sector through industrial policies designed to help domestic sectors reach goals that markets alone are unlikely to achieve. As a result, companies in targeted sectors—such as automakers, energy companies, and semiconductor manufacturers—may experience dramatic changes in their operating environments. The policies could create new costs or deliver financial incentives to shift R&D or manufacturing investments.