In this paper I discuss how different forms of industrial policy in Portugal are subjected to different policy risks, and which institutional solutions can be adopted in order to improve the effectiveness and legitimacy of these forms of government intervention. Our analysis emphasises the differences between four instances of industrial policy according to two dimensions: the number of (potential) beneficiaries targeted by the policy and the diversity of public agencies in possession of the relevant skills for its implementation. These factors help to determine the level of scrutiny to which public policies are subjected, whether by private actors or within the State apparatus. Both sources of scrutiny help to minimise the risks of capture of public resources by private interests and to foster institutional learning processes that promote the effectiveness of policies.

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Structural change,Innovation,Public policy,Government,Bureaucracy