I know "protectionism" is a dirty word. However, we have to ask ourselves : where will new industry and all those new jobs come from?
Guaranteed loans? Free donations to startups? Tax discounts (which kind of push that boundary)?
It all basically starts with some entrepreneur(s) getting investors behind them, all excited to invest in and start something. However, investors don't get excited about ventures that aren't likely to be able to pay them back. It's all risk/reward ratios. If the risk is too high, then an unrealistically high interest rate is the only way to counterbalance that. And if the interest rate is too high, then our new venture will soon be strangled to death by its own capital costs. (Especially when one considers just how much capital investment it takes to start a competitive company these days.)
So,... how do we eliminate risk? Seems to me the quick and dirty way is to simply not play fair. Put up some protections. A protected industry is an investor magnet.
It can be, but this only works for an economy that does not rely on external trade. Erecting trade barriers to your market will deny access from foreigners, who will react by denying you access to their market, so that the business with you they have lost will be compensated to some extent by gaining the domestic business of theirs which you used to have. In the end the net effect is less competition and therefore harm to consumers in both markets involved. So it's quick, dirty.... and stupid. Just the sort of thing The Chump would do.