Dani Rodrik has a nice summary of the recent revival of Industrial Policy (aka Infant Industry Protection in Chapter 7) across industrial and developed nations. Much of Paul Krugman's work on "Strategic Trade" for his Nobel Prize emphasizes the role of industrial policy. Economists have never really warmed up to the term and its implications, since everyone agrees that its near impossible to pick winners. Now Rodrik has a new mantra: "the standard rap against industrial policy is that governments cannot pick winners. Of course they can’t, but that is largely irrelevant. What determines success in industrial policy is not the ability to pick winners, but the capacity to let the losers go – a much less demanding requirement."