The aim of this article is to analyse how the current design and governance of French industrial policy is impeding technical and economic change. Industrial policy needs to address the “grand challenges” such as climate change by driving radically new economic and technical development. After analysing recent trends and the various stakeholders and levels involved in industrial policymaking in France, we show how the complexity; the conflicts between targets, instruments and stakeholders and the capture of industrial policymaking lead to inertia rather than change. The participation of incumbents at every stage of the policymaking reinforces short-term business strategies rather than creating a radical new path. We consider that a multi-level industrial democracy could enable the conditions of change to ensure sustainable industrial development. This requires reviewing the roles of each stakeholder, the way that funds are allocated, and how the implementation of these public policies is monitored.