largest user of these tools, followed by the United States and other developed economies that are revisiting their support mechanisms. Companies are now assessing how these government actions shape their operating environments, particularly in sectors such as batteries, hydrogen, and steel, which are receiving growing public investment. For example, subsidies for battery technology in 2023 equaled nearly 30% of global battery revenue.

Business leaders are increasingly incorporating industrial policies into their strategic decisions, carefully weighing the potential benefits against risks such as local sourcing requirements, labor constraints, and export restrictions. To strengthen investment cases, companies can benchmark against competitors and assess the long-term reliability of government support programs. Firms like Intel and Micron have already leveraged regional incentives to drive expansion and innovation. While these policies present valuable opportunities, they also demand thorough analysis to avoid overdependence on uncertain government backing. Aligning strategies with industrial policies—by identifying relevant incentives, evaluating their durability, and understanding competitors’ approaches—can help reduce investment risks and uncover new paths for growth.

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