Between 2019 and 2023, average spending on industrial policies through grants and tax expenditures rose by 15%, from 1.34% to 1.55% of GDP. Growth was driven mainly by grants (0.58% to 0.74% of GDP), while tax expenditures increased more modestly (0.76% to 0.81%). Support through financial instruments (loans, guarantees, public venture capital) remained broadly stable at 0.92% of GDP.
Quantifying industrial strategies
Quantification is crucial to guide policymaking, contribute to global transparency on government support to businesses, facilitate international co-ordination, and evaluate the effectiveness and efficiency of industrial policies and strategies. In response, OECD gathers publicly available data and measures industrial strategies across OECD countries through harmonised data on industrial policy expenditures, their composition, their mode of delivery, and the characteristics of their beneficiaries.
Key messages
The vast majority (76%) of industrial policy instruments (excluding COVID-19 measures) in place in 2023 already existed in 2019. In a given year, an existing instrument faces only a 4% chance of being discontinued. Although this exit rate increased over time, industrial policy instruments are long-lived. If current trends continue, half of the instruments existing in 2023 will still be active in 2041.
On average, sectoral policies account for around 30% of industrial policy grants and tax expenditures, exceeding the shares of policies targeting fixed capital investments (20%), R&D activities (18%), and the green transition (17%). By contrast, policies targeting specific technologies and the digital transition remain limited, at approximately 5% and 3%, respectively.
In 2023, sectoral industrial policy support through grants and tax expenditures was concentrated in energy (0.17% of GDP), manufacturing (0.10%), and transport (0.08%). Some upstream non-manufacturing sectors receive large support: mining support services (14% of the sector’s value added), water transportation (12%) and energy (12%).
Country notes and QuIS data
A detailed description of each country’s industrial strategy and comparison with other participating countries. The QuIS country notes are more exhaustive and provide more policy examples.
The QuIS database gathers data on industrial policy expenditures at the policy instrument level categorised by instrument type and eligibility criteria. Industrial policy expenditures are defined as direct support extended by the public sector to businesses, aimed at promoting investment (including digitalisation and cleaner production), improving competitiveness, or supporting economic development. The eligibility criteria are the following: ‘Digital’, ‘Green’, ‘R&D’, ‘Fixed capital’, ‘Financial and other capital’, ‘Labour costs’, ‘Skills/training’, ‘Energy costs’, ‘Intermediate inputs’, ‘Output-based support’, ‘Sectoral’, ‘SMEs and young firms’, ‘Other firms’, ‘Clusters’, ‘Regional’. The eligibility criteria are not mutually exclusive, and some instruments do not fall under any of the defined categories. In addition, instruments belonging to the categories 'COVID emergency support' or 'EU support' are flagged as such.
- Download the QuIS metadata (.pdf)
- Download the QuIS database (2025 vintage) (.dta)
- Download the QuIS database (2025 vintage) (.xlsx)
Context
Sizable industrial policies
Industrial policy support is substantial and has increased in recent years, particularly through grants and tax expenditures. Support levels range from 0.5% of GDP in Latvia to 3.2% in the United Kingdom.
On average, countries use a mix of grants and tax expenditures to fund national priorities. However, some countries – notably Canada, Türkiye and the United Kingdom – rely more heavily on tax expenditures. In contrast, Czechia, Estonia and Latvia rely mostly on grants, largely thanks to significant European Union funding.
Persistence of industrial policy instruments
Industrial policy instruments are highly stable over time, with limited entry and exit between 2019 and 2023. Across 20 QuIS participating countries, among the 2 255 instruments in place in 2023, 1 748 already existed in 2019. Although exit rates have increased over time, rising from 2.4% in 2020 to 4.8% in 2023, only 330 instruments have been discontinued since 2020 (less than 15% of total recorded instruments over the 2019-2023 period). This makes the evaluation of existing instruments even more important.
Industrial policies pursue multiple objectives
Industrial policy support extends beyond traditional sectoral measures to encompass a wider range of objectives. In 2023, next to sectoral support (0.45% of GDP), grants and tax expenditures mainly targeted fixed capital investment (0.31%), R&D activities (0.28%), the green transition (0.26%), and energy costs (0.22%). Compared with 2019, sector-specific support has declined slightly, while funding for fixed capital investment, the green transition, support to energy costs, and SMEs and young firms has increased.
NB: Targets are not mutually exclusive. Policies can have multiple targets.
Main targets of sectoral policies: Energy, manufacturing, transport
Sector-specific support through grants and tax expenditures remains concentrated in a small number of sectors. In 2023, most support targeted energy (0.17% of GDP), manufacturing (0.10%), and transport (0.08%). Energy-related support – largely provided through renewable energy grants – declined temporarily during the 2022 energy crisis as higher electricity prices reduced feed-in tariff disbursements for renewable electricity, before rebounding in 2023. Manufacturing support increased in several countries, especially for energy-intensive industries and the development and adoption of new technologies. Transport support remained broadly stable, strongly driven by tax expenditures measures on fuel taxes and maritime transport.
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