Reconsidering Supply Chains and Industrial Policy from the Economic Security Perspective

With the rise of geopolitical risk around the world, there is a growing need to build supply chains that take economic security into account, and as a result, large-scale industrial policies have been implemented in various countries to foster domestic industries. In order to respond to this reality, policy and managerial advice based on international economics are also necessarily changing from the previous focus on free trade and competition. This paper discusses policies for building resilient supply chains and strengthening economic security, based on recent theoretical and empirical research outcomes.

This is the English version of the Japanese Policy Discussion Paper (25-P-001) with some additional information and changes.