Two key transformations are impacting competitiveness in shipbuilding, a strategic sector for multiple OECD countries: New digital technologies and a shift towards the production and operation of more energy-efficient ships have created new opportunities and risks. Strategic and evidence-driven use of industrial policies may be effective in fostering competitiveness by addressing key challenges related to these two transformations impacting the sector. Core targets for policy action are innovation and commercialisation, investment confidence, and evolving skilled labour needs.