Introduction According to Dani Rodrick, the author of the article, “Industrial Policy for the Twenty-First Century”, conventional economists held the view that developing economies are characterized by numerous market failures. Additionally, economists were of the view that it was only through government interventions that poverty level in such societies could be reduced 1 . Some of the interventions considered relate to state ownership, import substitution and planning. However, this view was short-lived due to the extensive government failures and crises experienced, which led to increased consideration of market forces as an important factor in a country’s economic development. Adoption of economic liberalization and open trade policy led to economies experiencing a number of benefits. Some of the benefits include increment in the volume of exports, development in quality of human capital by gaining new skills and knowledge, and improvement in financial interests. One of the elements of economic development that the author has cited to be enhanced by market forces relates to the existence of entrepreneurship. The author asserts that entrepreneurship encourages diversification of productive structures. However, the resulting economic growth rates were lower than what had previously been experienced under the old policies. Thus, market forces were not free of failures. In light of this, this paper illustrates the importance collaboration between the private and public sectors in formulating policies. Additionally, market forces are also cited as an important consideration in the policy formulation process. Literature review The author notes that both the developed and the developing economies have a responsibility to ensure that they develop a high comparative advantage. A strong relationship exists between development of a high rate of economic growth and nurturing the competitive advantage. Incorporation of a governed-market model is one of the elements cited by various scholars to contribute to high economic development 2 . Development of a market-oriented economy is an important tool in attaining a high rate economic growth. Integration of growth-oriented entrepreneurship is regard as one of the avenues through which economies can stimulate industrial growth. The author hypothesizes that it is critical for the private sector and the government to collaborate in formulating policies that culminate in development of a market-oriented economy. Entrepreneurship is regarded as one of the essential elements of economic organization 3 . Entrepreneurship is an important component in developing a market economy. In spite of its importance, both traditional and modern economists have continuously neglected the subject. Different economists are of the opinion that industrial policies should be formulated in such a manner that they enhance productivity. Additionally, investment in research and development should be taken into consideration in country’s quest to attain a high level of economic development. The policy formulated should ensure that they result in the creation of an optimal economic environment. Upon instituting an environment that fosters research and development, it is paramount for stakeholders in the private and the public sector to institute effective protection mechanism. One of the ways through which this can be attained is by recognizing and implementing intellectual property rights. This will stimulate innovation