Industrial policy theory review in the western scientific literature

The topic of industrial policy is one of the most discussed during Ukrainian modern economic history time and even nowadays we see lack of theoretical bachground for current industrial policy decissions. The chapter was prepared using statements, journal articles, and terms from original publications acourding to the topic review in foreign European and American scientific literature. The main purpose of the article is to wrap up analytics of theory and evolutional concepts for industrial policy practice and to show the wide variety of definitions for industrial policy, its scope, objectives, instruments, and forms of intervention. Nowadays we see renewed interest to theory of industrial policy in developed countries and in Ukraine as well. Article information is followed by review terms politics/policy and effectiveness/efficiency, definitions of industrial policy, aims of industrial policy discribed in western scientific literature and core instruments. In this respect, two approaches to industrial policy have been elaborated: sectoral and horizontal, and some other classifications of industrial policy, arguments in favour and against governmental intervensions actively using instruments of industrial policy. Article in particular reviews theories – new industrial policy, knowledge-based and systemic industrial policy, factor of innovations. An extensive discussion of the consequences of a policy aimed at the improving competitiveness of domestic industry allows for the presentation of a wide range of short- and long-term effects of traditional industrial policy. So that we could come to conclusion that industrial policy-making process is highly discussed in scientific literature by researches from many countries and there is no one vision. Each country could select type and approach to policy that fit it`s tradition and further society goals.