The article discusses the transformation of the international economic order that takes place under the influence of globalization, which has a significant impact on the geo-economic position of the Russian Federation. Russia's WTO accession involves its inclusion in the international division of labor, but an incomplete period of reform and transition to market economy forces to concentrate on the problems of the domestic economic and political space. The authors analyze the conditions of modernization of the Russian economy, primarily focusing on industrial policy, pointing to its systemic importance as an institution that provides a dynamic development of the country, the growth of the welfare of its citizens and ensures the competitiveness of domestic producers. The key issue of industrial policy according to the authors is to determine the mechanisms of state support of industrial enterprises. Necessary measures include institutional restructuring of enterprises, their privatization, bankruptcy mechanisms, programs of small business development and others. Measures to regulate foreign direct investment are an important instrument of industrial policy. The main purpose of industrial policy is to provide the lift of industry by improving the efficiency and competitiveness in the domestic and foreign markets. The article examines the experience of the industrial development of the United States and the European Union which accounts for about one third of the world’s industrial output, but is also characterized by the aging and the crisis of traditional industries such as the steel and textile industries in recent decades. Authors made a conclusion of the feasibility of using the experience of Germany to implement the policy of preserving and creating jobs in the industry. The agreement with the trade unions about curbing the growth of wages in exchange for keeping jobs locally and reform of the social system significantly strengthen the competitiveness of German industry.