Abstract
Amid growing calls for stronger state involvement in the platform economy, there is still limited clarity on how such interventions should be designed and implemented. This paper examines how industrial policy can be adapted to platform-based markets, focusing on the direct state provision of platform services. Drawing on insights from platform studies, innovation economics, and political economy, I analyze the rationales, risks, and policy implications of this approach. I argue that direct provision is most justified in contexts of missing markets, platform dominance, pressing social needs, or strategic sectors. To navigate its challenges, I introduce two key concepts: platform capture, which warns of risks of state overreach, and ecosystem embeddedness, which underscores the importance of collaborative governance and stakeholder integration for adoption and risk mitigation. The paper concludes by outlining a research agenda on how public platforms can complement broader industrial policy instruments in the digital economy.