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A large literature in political economy argues that governments in the advanced industrialized states retrenched from the application of industrial policy while resisting pressure to reform in a limited number of sectors. In this article, I argue that retrenchment and resistance do not fully describe the range of choices made by governments. Through an analysis of investment in energy policy in Japan, I show that in addition to retrenching from industrial policies and resisting pressure todoi:10.1017/s1598240800007633 fatcat:2sopyvngzfarpgdotcgbsj4uuy