New economic globalization, new industrial policy and late-development in the 21st century: a critical analytical review

After having been put aside for three decades, industrial policy has reappeared in the research and policy debate on economic development in the Global South. However, it has also been argued that fragmented and decentralized value chains have foreclosed the traditional role of industrial policy. The article reviews three strands of thinking, exploring to what extent and how one can align the call for new industrial policy with the expansion of global value chains? It shows how the research agenda can be moved forward by realigning contributions from global value chain scholarship with researchers who take their point of departure concerning new industrial policy in structural transformation, technological capability and innovation system thinking.