The U.S. is losing the competition for good jobs and high-value industries because most of Washington believes trade should be free, the dollar should float, and that innovation comes exclusively from the private sector. In this book, the authors make the bold case that these laissez-faire ideas have failed and that a robust industrial policy is the only way for America to remain prosperous and secure. Trump and Biden have enacted some of its elements, but it needs to be made systematic and comprehensive, including tariffs to protect key industries, a competitive exchange rate, and federal support for commercialization—not just invention—of new technologies. Timely, meticulously researched, and bipartisan, this impressive analysis replaces misunderstandings about industrial policy with lucid explanations of its underlying economic theory, the tools that implement it, and its successes (and failures) in America and abroad. It examines key industries of the past and future – steel, automobiles, television, semiconductors, space, aviation, robotics, and nanotechnology. It concludes with a realistic, actionable policy roadmap. A work of rigor and ambition, Industrial Policy for the United States is essential reading.

‘The authors provide enormous background, case studies, and analysis about how to implement strong trade and industrial policies to restore America’s leadership in innovation and manufacturing – and the good jobs that come with it. This should be required reading for any policymaker working to increase America’s productive capacity and strengthen our supply chains.’

Earl Blumenauer (D-OR) - Ranking Member, Subcommittee on Trade, House Ways and Means Committee

‘Truly impressive. While readers may disagree with some of its recommendations, almost all will find its documentation of the practice over the last three centuries a source of valuable historical perspective. And its assessments of past successes and failures – overseas and in the US – will be helpful to policymakers in a world where industrial policy is likely to become de rigueur.’

Willy Shih - Harvard Business School

‘This is an indispensable guide for CEOs – of multinationals on down – for understanding and taking advantage of America’s return to industrial policy. It rebuts the ‘leave everything to the market’ argument, quantifying the horrific damage done to America’s businesses, workers, and national security by pursuit of the free trade mirage. Its comprehensive, well-thought-out, and coherent policy recommendations should be required reading for every policymaker.’

Dan DiMicco - Former Chairman and CEO, Nucor

‘There has been a global trend of policymakers drifting away from laissez faire and free trade, because of various reasons. And that story has not been explained rigorously enough by most books and research papers that exist today. This in-depth treatise on Industrial Policy fills in this huge gap in a scintillating manner with references and explanations from across the world. The book provides the readers with intellectual ammunition needed to contrast and compare various policy pathways and their potential impact on industries.'

Badri Narayanan - Former Head, Trade and Commerce, NITI Aayog, Lead Trade Advisor to PM Narendra Modi

‘State ownership and control of industry have failed, as has leaving everything to the market. Instead, governments need judicious and evidence based industrial policies. This book makes a brilliant case for same, combining strategic guidance by the state with the innovative potential of competitive enterprise. Everyone who cares about our economic future should read this.'

Geoffrey M. Hodgson - Emeritus Professor of Economics, Loughborough University, Editor in Chief, Journal of Institutional Economics

‘If America and its democratic allies are to recover the economic and strategic bulk lost over the last four decades, elected officials and policymakers will need a plan. No longer can they blindly put their hopes in the abstractions of free-market ideology. They must have industrial policy tethered to the reality of strategic competition. Our strategic rivals are embracing industrial policy to our detriment; we must respond. This excellent book lights the way ahead.'

Andrew Hastie - Member of Parliament, Commonwealth of Australia and Shadow Minister for Defence

‘A well-written, well-reasoned, and remarkably thorough case for a much more vigorous and targeted industrial policy. It correctly argues that markets alone will not optimize output from the most valuable industries because of significant market failures. Its detailed, well-articulated proposal for a specific ‘Industrial Policy for the United States' should give free-market acolytes pause and progressives ammunition in the battle for an industrial revival.'

Jeffrey Fuhrer - Non-Resident Fellow, Brookings Institution, Foundation Fellow at the Eastern Bank Foundation

‘So much economic analysis and controversy misses the real heart of our current crisis – America's industries, especially manufacturing – and why they keep losing ground to foreign competitors. This book finally gives a complete picture of what went wrong and what we can do about it. I especially appreciated the discussion of how the development and deployment of innovations depends on not only the private sector, but also on crucial, under-appreciated programs like the Manufacturing Extension Partnership and Manufacturing USA. If American industry is to convincingly recover its formerly world-leading position, this country will need to support every step of the innovation pipeline, not just pure science and defense-oriented technologies, across the entire industrial spectrum.'

Carroll Thomas - Former Director, Manufacturing Extension Partnership

‘The fight to control tomorrow's strategic industries will not be determined by market forces but by industrial policy. This superb and timely book explains why and how America must act if it is to be a major player in the world's industrial future.'

Stewar Paterson - Author, China, Trade and Power: Why the West's Economic Engagement Has Failed

‘Without a doubt this is the most definitive analysis of industrial policy ever written. For anyone interested in industrial policy and its implications for the economy, this is the perfect source and a real triumph!’

Barry Bluestone - Northeastern University

‘Research, discussion, and policy initiatives advocating industrial policy for the US is spreading in wake of the failure of neoliberal doctrines to deliver inclusive growth and technological leadership. Fasteau and Fletcher's seminal contribution advances this agenda and paves the way for a proactive commonsensical set of industrial policies.'

John Komlos - Professor Emeritus of Economics and Economic History, University of Munich

‘This book illuminates the path through the complexities and escalating costs of industry and advanced manufacturing, where current US policy is insufficient. Presenting a detailed plan and advocating for a whole-of-government industrial policy, it offers essential guidance for students and policymakers to navigate and shape the future of American industry.'

David Bourne - Principal Scientist, Robotics, Carnegie Mellon Associate Director, Manufacturing Futures Institute