The authors discuss the controversial area of industrial policy which, after the 2008 crisis, faced the reaction that markets do not always perform optimally for society, generating a demand for new policy models. The chapter shows how the views on industrial policy have changed from a long-term perspective, with a special focus on the post-war period up to the current post-industrial society. The authors argue that industrial policies should be placed at the regional level and that small- and medium-sized regions need different policies than do large urban regions. In addition, this chapter briefly evaluates the EU’s current approach to industrial policy – the so-called smart specialisation – and sheds light on the problems related to this policy initiative.