This article analyses the institutional conditions required to support a strategic state in being responsive to the changing demands of a market-economy, whilst maintaining a credible commitment to long-term policy goals. This article identifies a key pillar of a market economy that we believe is crucial to promoting inclusive economic growth; we term these institutions market-engaging institutions. We propose that market-engaging institutions may form a bridge between the flexibility required by a dynamic market economy and the stability demanded by the rule of law. We define market-engaging institutions as those institutions that facilitate greater political participation for marginalized groups, manage technological disruptions, and support human capital formation. Examples include social partnership agreements, collective bargaining coverage, trade union membership, education and training services, and research and development programmes. We suggest that mobilizing these institutions necessitates credible commitment. Further, we argue that through its commitment to the non-arbitrary administration of general rules the rule of law is an essential condition for signalling the state’s credible commitment. However, at times the requirement for the state to be flexible to the changing needs of market actors may conflict with the rule of law’s demand for constancy and stability. This article examines the delicate balancing act required to sustain a strategic, responsive, and credible state in an era of institutional flux.