ABSTRACT
Continuous structural transformation, industrial upgrading and technological innovation are key features of economic development. Industrial policy can be a critical component of a strategy aimed at allowing countries to develop in line with their comparative advantage. This chapter discusses the recent experiences of the Former Yugoslav Republic of Macedonia and Malaysia in implementing industrial policy with a view to identifying guiding principles going forward. Key lessons include the importance of systematic and institutionalised dialogue between the public and the private sector in the design and implementation of industrial policy, as well as the need to select prioritised sectors and the associated strategic reforms.
