Industrial policy refers to government strategies aimed at promoting specific sectors or industries within the economy. This can involve providing financial support, tax incentives, or regulatory changes to encourage growth and competitiveness. The goal is to enhance productivity, create jobs, and foster innovation in key areas. Governments may implement industrial policy to address market failures or to support emerging technologies, such as renewable energy or artificial intelligence. By focusing on particular industries, policymakers hope to stimulate economic development and improve the overall standard of living for citizens.