Industrial policy is defined as selective public interventions aimed at transforming the production structure through subsidies, tax incentives, concessional financing and regulatory privileges directed at specific sectors, activities or firms, according to the International Monetary Fund (IMF). The primary objectives of these policies are to correct market failures, enhance productivity through economies of scale and learning-by-doing, develop domestic capacity in strategic sectors and support long-term growth.

According to IMF findings, industrial policies can support productivity gains and technological convergence by increasing production and capacity in targeted sectors. Particularly in areas where economies of scale and learning effects are strong, the development of domestic production can reduce import dependency and enhance economic resilience. However, IMF analyses also reveal that such policies may entail short-term trade-offs, including potential price effects and fiscal implications.

Moreover, the IMF emphasizes that the net macroeconomic impact of industrial policies is closely linked to policy design and implementation frameworks. Therefore, their effectiveness depends on accurate targeting, performance-based support mechanisms, transparency, the preservation of market discipline and their complementarity with structural reforms.

In this framework, the energy sector has recently emerged as one of the most intensively targeted areas of industrial policy, as countries increase targeted support to enhance energy security, reduce external dependency and accelerate the green transition.

From Marmara to Anatolia

In Türkiye, various industrial policies have been implemented in both the energy and defense sectors in recent years. As a result, the share of renewable energy has increased, and according to the Ankara Chamber of Industry, the export unit value in the defense industry has exceeded $60 per kilogram.

The recent orientation of industrial policy in Türkiye emphasizes not only increasing production volume but also addressing spatial disparities in a more balanced manner. The objective of "spreading industry across Anatolia,” frequently highlighted by Industry and Technology Minister Mehmet Fatih Kacır, can be considered a strategic effort that complements existing regional strengths.

According to Turkish Statistical Institute data, nearly one-third of national income is generated in Istanbul, while approximately 90% of manufacturing value added is produced in the Marmara region. These figures indicate a growth structure in which certain regions have assumed a leading role over time.

This pattern of concentration is also reflected in the labor market. Industrial clustering in the Marmara region increases labor demand in this area and shapes employment dynamics across the country.

In this context, many regions in Anatolia present additional potential for more effective utilization of labor. Therefore, policies aimed at achieving a more balanced geographical distribution of industrial activities may contribute to a broader diffusion of growth, supporting a more inclusive and sustainable development path.

Details of the master plan

The announced master plan aims to expand Türkiye’s planned industrial zones from 155,000 hectares to over 350,000 hectares within five years, representing a more than twofold increase. The latest official decision adds an area equivalent to approximately 40% of the existing industrial land planned, significantly accelerating this expansion. These new areas are expected to host mega industrial zones reaching around eleven times the average size of current organized industrial zones.

In parallel, the planned corridors along the Samsun-Mersin, Mersin-Şırnak, Sivas-Iğdır and Trabzon-Şırnak lines stand out as key axes that could reshape production geography. Supported by a strong logistics infrastructure, this large-scale capacity increase may enhance Türkiye’s position in both domestic production and international trade.

The success of such spatial transformation projects is not limited to physical infrastructure investments. Factors such as the availability of a skilled workforce, the development of local supply chains, energy costs and the effectiveness of regional incentives will be decisive. If the goal is to spread high-technology production across Anatolia, it is important to consider the relocation or integration of the research and development (R&D) ecosystem into these regions, too. This can support the contribution of industrial investments to higher value-added activities. In this regard, Türkiye’s experience with organized industrial zones and technoparks can serve as an accelerator.

Another important dimension of the announced policies is the relocation of existing industrial facilities from western provinces to less developed regions through "relocation incentives.” While this approach may create cost advantages in the short term, potential considerations may arise regarding production continuity, labor adaptation and supply chains. Rapid infrastructure development, along with a gradual, well-planned and sector-specific approach, is essential for the success of this process.

Future direction, potential

When evaluated alongside the "National Technology Initiative” vision, recent industrial policies in Türkiye indicate an effort not only to increase the quantity of production but also to transform its quality. Steps taken in areas such as electric vehicles, biotechnology, artificial intelligence and quantum technologies reflect the goal of moving up global value chains. The sustainability of these goals is closely related to their alignment with regional development policies. Such policies should be designed as a cornerstone of national development and supported by both technical measures and a comprehensive strategic vision.

In conclusion, the policy of spreading industrial facilities across Anatolia holds significant opportunities for the Turkish economy if properly designed and implemented within a holistic development framework. This process has the potential to reshape not only the geography of production but also income distribution, employment structures and regional production dynamics. Industrial policy outcomes tend to depend on a balanced interaction between physical investments, human capital, technology and institutional capacity. Therefore, we can say that the realization of this potential is closely associated with macroeconomic stability in Türkiye.