Industrial policy is gaining renewed interest among governments. However, the global context has changed, making it difficult to replicate the success of past industrial policy approaches. Specifically, developed countries are no longer as supportive of developing country industrial policies, global manufacturing is increasingly consolidated, and manufacturing demand is declining. As a result, traditional large-scale industrial policy projects pursued by development organizations often fail to achieve results due to unrealistic timeframes and overcomplexity. To be more effective, industrial policy approaches need to shift focus to directly empowering entrepreneurs and identifying pockets of private sector growth, and development organizations need to exercise more flexibility to address changing needs.