Sustainable human development, capabilities and the new trajectories of industrial policy

The twin digital and green transitions are driving the structural transformation of economies and societies across the world, opening new trajectories of industrial development and new rationales for government intervention. These refer not only to pursue the Fourth Industrial Revolution, but also to tackle societal challenges such as climate change and rising inequalities. In this scenario, this chapter aims at better framing the current and future role of industrial policy towards Sustainable Human Development in a context characterized by both deep and complex transformations as well as multiple and interrelated challenges and crises. In particular, we discuss how the four pillars of Sustainable Human Development provide a new lens to analyse the practice of industrial policy across the world – i.e., China, United States of America, European Union and India – in order to shed lights on the nexus between industrial development, human capabilities and sustainability.