The nature of industry is changing rapidly under the forces of globalisation. Those changes manifest themselves in increasing specialisation within manufacturing, thus creating implications for industrial development policy. As a result, there is an urgent need to define a role for public support in the context of the new industrial realities. Many questions arising from that need are yet to be answered. For instance, what is the need for, and nature of, public goods in industrial development? In what ways can the provision of public goods help to overcome market failures and promote industrial development? An analysis of the nature of market failures and public goods amid the new industrial realities could help national and international organizations, such as UNIDO, in their efforts to support the industrialisation process.