By Francesca Spigarelli, Lorenzo Compagnucci, and Dominique Lepore

Industrial economics has long provided essential tools for understanding how firms compete, how markets function and how innovation drives economic performance. However, the world in which these tools were developed has changed dramatically.

The COVID-19 pandemic exacerbated the fragility of global value chains. Geopolitical tensions have transformed semiconductors, energy and critical technologies into strategic assets. Climate change is forcing governments and firms to rethink production systems, while digital technologies continue to reshape industries.

These developments raise broader questions than those traditionally addressed by industrial economics. Understanding industrial transformation today is no longer simply a matter of analysing firms, markets and competition. It also requires understanding how governments shape technological trajectories, coordinate industrial ecosystems, support strategic sectors and respond to systemic challenges.

In this context, a fundamental question emerges:What can Industrial Economics learn from Industrial Policy?

The Modern Guide to Industrial Economics is built around this question. Instead of treating industrial economics and industrial policy as separate domains, the volume explores their increasingly intertwined relationship. It examines how firms, markets, institutions and policy interventions influence economic activities across countries, sectors and technological systems.

‘A Modern Guide to Industrial Economics arrives at a pivotal moment. This ambitious edited volume—spanning industrial policy theory and policy, innovation ecosystems, and geopolitical competition—masterfully bridges academic rigor and real-world application. Readers will find this to be a timely, indispensable companion to understand how economies transform.’

– Vinod K. Aggarwal, University of California, Berkeley, USA

The book reflects a broader evolution that has taken place in recent years. Industrial policy, once considered a marginal topic in many advanced economies, has returned to the centre of economic debate. Governments across the world are intervening to strengthen technological capabilities, increase resilience, support sustainability transitions and reduce strategic dependencies in critical sectors. However, the book also warns about the “enthusiastic” return of industrial policy.

This renewed prominence of industrial policy also challenges traditional approaches to industrial economics. If public policies increasingly shape industrial outcomes, then understanding contemporary industries requires analysing market forces, institutions, governance structures and policy instruments that influence them.

Theoretical discussions in the first part of the book explore these evolving foundations. In particular, contributors revisit the role of industrial policy, analyse innovation ecosystems and examine the relationship between technological change and economic development.

The second part turns to practical applications. Through country and sector-specific studies, the chapters examine how industrial policies are implemented, adapted and contested in different contexts. Topics range from digital transformation and entrepreneurship to blockchain adoption, maritime industries, agrifood systems, semiconductors and new energy vehicles.

Across these diverse cases, a common message emerges. Industrial transformation cannot be understood solely through the lens of market efficiency. It also requires attention to resilience, sustainability, technological capabilities and institutional capacity.

For policymakers, the volume offers evidence and lessons from different national experiences. For academics, it highlights emerging theoretical debates and research directions. For industry professionals, it provides a broader understanding of the forces shaping competitive advantage and industrial development. For students and anyone interested in this field, it offers a deeper understanding of the factors influencing industry dynamics and long-term development.

To conclude, what can industrial economics learn from industrial policy?

Rather than providing a definitive answer, this volume invites readers to engage with the question from multiple perspectives. By bringing together different theoretical approaches, national experiences and sectoral insights, it offers a richer understanding of how industrial transformation is shaped in an increasingly complex and uncertain world.

A Modern Guide to Industrial Economics is edited by Francesca Spigarelli, Full Professor of Applied Economics, Lorenzo Compagnucci, Associate Professor of Applied Economics, Department of Law, University of Macerata and Dominique Lepore, Assistant Professor of Applied Economics, Department of Economics, Statistics and Business, Universitas Mercatorum, Italy

A Modern Guide to Industrial Economics (publishing later in July 2026) is available to pre-order in hardback here.

The eBook version will become available to purchase once published here.