Governments in the UK and Canada are rewriting the rules of industrial policy to tackle climate change, regional inequality, and the rise of AI—but they lack a clear, evidence-based playbook for doing so. This project addresses a critical gap: while policymakers are eager to use industrial policy for green and inclusive goals, the academic literature on how to design and govern these interventions is fragmented and often disconnected from real-world strategies. The researchers will synthesize existing academic and policy literature alongside recent industrial strategies from Canada and the UK, checking whether policy goals align with research findings. They will also examine new place-based analytical techniques used to support industrial policy. If successful, the project will produce a co-developed conceptual framework that distills this knowledge into a practical tool for policymakers, stakeholders, and researchers. This framework could help governments design more effective, adaptable industrial policies—shaping decisions about which industries to support, how to decarbonise the economy, and where to invest to reduce territorial inequalities. The work is supported by the OECD, the Transition Accelerator, and the Productivity Institute, ensuring the findings reach the people who make policy.
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Industrial policy is back in vogue among policy makers today, encompassing a broader range of goals to address critical global challenges such as economic decarbonization, territorial inequalities, securing domestic industries, and adapting to rapid technological advances in AI and digital innovation. These interventions are connected to many of the future global challenges identified by Policy Horizons Canada. This 'new' industrial policy is a potentially powerful instrument to reimagine state-government-society relations. This Knowledge Synthesis will analyse academic and policy literature alongside industrial strategies in order to identify the state of knowledge, strengths and gaps and research data (Objectives 1 and 2). The analysis and findings will inform a co-developed conceptual framework to support knowledge mobilization (Objective 3). By translating research findings into accessible frameworks, the project will support policymakers, stakeholders, and researchers in making informed, evidence-based decisions. This framework will serve as a foundational tool for future research and policymaking, essential for crafting impactful and adaptable industrial policies that meet today's complex needs. By analyzing academic and policy literature and recent industrial strategies from Canada and the UK, the research will assess whether policy goals align with academic findings. Additionally, the project will examine data collection and analytical techniques used to support industrial policy, focusing on recent advancements in place-based analysis. Our co-developed conceptual framework will distill key findings into a cohesive understanding of new industrial policy approaches, governance mechanisms, and research needs. This knowledge synthesis will assist policymakers and researchers to develop more inclusive, effective, and future-ready industrial policies. Led by Tamara Krawchenko, an internationally recognised expert in comparative public policy and regional development, and Philip McCann, a renowned spatial economist, the project benefits from their combined experience advising governments and leading high-impact research across Canada, the UK, and internationally. Their contributions are complemented by graduate research assistants who will receive hands-on training in literature review, scoping, and knowledge synthesis, actively participating in the development and presentation of the project's outputs. Knowledge mobilization for this project will be supported by the Organisation for Economic Co-operation and Development, the Transition Accelerator's Centre for Net Zero Industrial Policy (Canada) and The Productivity Institute (UK).
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