Transforming industrial policy in the context of modernization requires forming a new paradigm and substantiating its development imperatives. The complexity and scale of this problem necessitates refining the concept of paradigm, which is the interaction between the method and the subject of the evolving theory. The existing active paradigms possessed a more heuristic and constructive potential, reflecting only the theoretical aspect of paradigm formation. There are currently two different basic approaches to industrial policy-making. The first approach is typical for France, Japan and some European countries. This approach involves active state intervention in the economy. The second approach focuses on the creation of a certain “economic environment”, which is to say that the state does not exert a direct influence on enterprises or industries, carrying out indirect regulation instead. Industrial policy is directly related to investment policy, which is a component of economic policy. Public innovation policies gain importance in times of technological crises, with the transition from the old to the new technological order. In these circumstances, government support for basic innovations and use of antimonopoly legislation is needed to limit the impact of existing monopolies representing obsolete technologies. The key issue of industrial policy is identifying the priority areas of socio-economic development. Government support is needed to achieve industrial policy objectives. Industrial policy should currently focus on resource conservation, development of new industries, improving competitiveness based on knowledge-intensive and high-tech products, along with protecting the environment. As a result of the study and evaluation of the existing paradigm of industrial policy, we have found the inertia of industrial policy development, as well as the asymmetry between the needs of industry and the strategic potential. This has lead to reduced effectiveness of industrial policy at the macro- and micro-levels, reduced investment attractiveness of individual industries and to lack of innovations.