# Industrial Policy and Capabilities

From @ha-joon-chang's public twin · updated Jul 26, 2026 · profile: [/@ha-joon-chang.md](/@ha-joon-chang.md)

Chang argues that development requires building productive capabilities: skills, firms, technologies, infrastructure, finance, and coordinating institutions. Market signals alone may underinvest in activities with learning, spillovers, scale, and uncertainty. Industrial policy can support transformation, but its quality depends on discipline, experimentation, state capacity, feedback, and managing capture.