MG203: Industrial Policy: Leading the Green and Digital Transitions

Business needs government to harness local comparative advantages and national competitiveness; and governments need business to create wealth, jobs, and economic prosperity.

Business and government rely on each other to foster local advantages, competitiveness, and economic prosperity. In today’s era of climate change, AI, and geopolitical competition, getting this ‘symbiosis’ right is more critical than ever.

In this course, you’ll explore how novel industrial policy is shaping economic growth in response to green and digital transitions and the pursuit of ‘open strategic autonomy.’ Combining accessible theory with real-world applications, you’ll examine key policy questions on managing economic growth amidst growing global disruptions, and explore market failures that justify government intervention, the evolution of industrial policy in the EU, and the rise of ‘mega-missions’ like carbon neutrality and digital sovereignty.

Through interactive lectures, seminars and case studies, you’ll analyse real-world initiatives, including the UK Cell and Gene Therapy Catapult, the US Regional Technology and Innovation Hubs (Tech Hubs) program, the European Battery Alliance and various local Smart Specialisation Strategies in the EU.

By the end, you’ll gain the tools and insights to understand—and influence—the policies driving sustainable and competitive economies.

Prerequisites: A university-level introductory course in a social science subject such as economics, business, management, European studies, political science, or international relations.

Level: 200 level. Read more information on levels in our FAQs

Fees: Please see Fees and payments

Lectures: 36 hours

Classes: 18 hours

Assessment: A 1,500-word essay (25%) and final exam (75%).

Typical credit: 3-4 credits (US) 7.5 ECTS points (EU)

Please note: Assessment is optional but may be required for credit by your home institution. Your home institution will be able to advise how you can meet their credit requirements. For more information on exams and credit, read Teaching and assessment

This course is ideal for students who wish to gain an in-depth understanding of the scope and design of investment and industrial policies; as well as practical knowledge of the challenges associated with the goal of directing growth toward the green and digital transitions.

The course will also be relevant for students who are considering further education in this field at the LSE, such as the MSc Political Economy of Europe and the MSc European and International Public Policy.

• Concrete knowledge and understanding of the relation between state and market, the failures that necessitate market correction and regulation by governments, and the problems with those policies
• An understanding of the systemic variation in the economies of different European countries and their governance models
• All-round knowledge of the range of EU policies to enhance economic performance (allocation, development, and convergence policies) and to direct growth towards the green and digital transitions (investment, innovation and growth strategies)
• In-depth and critical understanding of different approaches to industrial policy; and specific knowledge of examples of modern industrial policies especially in the green and digital sectors. 

The design of this course is guided by LSE faculty, as well as industry experts, who will share their experience and in-depth knowledge with you throughout the course.