In the developed economies, industrial growth and international competitiveness usually depend on access to new technologies and the capacity of different countries to sustain their lead in innovation and technological development. Since the early 1950s much of the discussion on technological capacity-building and competitiveness has therefore centred around the impact of policy, namely whether or not an active policy is necessary to achieve technological leadership and improve the competitiveness of national companies.
Although many developed countries have used industrial policy at one point or another, either to protect/preserve old industries or as a response to new industrial problems, only a few have used it consistently. In recent years, however, the loss of competitiveness arising from new technologies has forced most developed countries to focus on to a set of principles that broadly favour strategic policy intervention in key sectors. In the case of developing countries, on the other hand, the industrial policy debate has revolved around the infant-industry argument and in particular the question of how and for how long emerging industries should be protected.