Abstract This paper posits that what has been currently understood as a new return of industrial policies is actually a vague and rhetorical usage of the notion, as the current framework lacks the proper understanding of industrial policies as instruments to firstly, orient the rate and direction of technical change; secondly, govern and shape the direction of collective answers to major challenges; thirdly, promote alliances beyond different and possibly conflicting interests, bringing together actors and institutions with the ability to undertake social coordination at the benefit of society. Overall, this contribution advocates a new political economy of industrial policies, going beyond simple and mostly ineffective “incentives”, such as tax deductions.