A major programme of research on labour market policy is under way at the International Institute of Management, Berlin. Worldwide economic and social changes have created problems common to almost all highly industrialised countries. Concentration of population and industry in a few agglomeration areas, stagnation in a number of industries, and high degrees of structural unemployment which is regionally and sectorally differentiated have led to an increasing demand for effective governmental policies. Research in the area of industrial policy aims at developing empirically based knowledge about the causes and the conditions of these three problem areas, in order to improve the framework for active policy making. Political strategies and measures are being studied as to their transferability from one country to another. The influence of political and administrative conditions on industrial policy‐making is being studied in close co‐operation with another research programme on government and public administration.