This chapter concludes with policy recommendations based upon the theory presented in chapter 19. Although it is not possible to alter the fact that labor is inalienable, public policy can be used to address the market failures that limit the number of labor-managed firms. Early sections of the chapter review ideas about Pareto efficiency, aggregate surplus maximization, and the nature of the informational and commitment constraints facing governments. The next several sections consider (a) the prevention of unwanted investor takeovers of LMFs; (b) the encouragement of employee buyouts in conventional firms; and (c) the creation of LMF federations. One key proposal is that a publicly-financed bank be used in combination with employee contributions to promote employee buyouts of existing firms. In addition, LMF federations can help to overcome appropriation problems associated with firm formation. The book closes by arguing that innovation with respect to firm organization is an ongoing process, and that well-designed policy experiments to expand the labor-managed sector could yield large economic benefits.