Brussels, 04/07/2007 (Agence Europe) - The new industrial policy proposed by the Commission in October 2005 (EUROPE 9042) was, for the first time, founded on an integrated approach based on both sectoral and horizontal initiatives. Since then, European industry has moved forward in a context of greater globalisation and rapid technological change. Two years after its adoption, the Commission's approach remains largely valid as far as globalisation and technological change is concerned. It is also valid as industry needs to adapt to the challenges posed by climate change and to grasp the opportunities of new low-energy and resource-saving processes and products. Such was the message delivered by the Commission in its mid-term review on industrial policy, published on Wednesday.
A rapid overview of the performances of European industry confirms that it is currently doing well. With average growth of 2.6% annually over the last two years, it continues to play a driving role in the European economy, not only with regard to growth (20% contribution to EU GDP) but also innovation (81% of private sector R&D spending), qualified employment and trade (73% of Community exports are innovative products). Indirectly, industry contributes to giving impetus to the services sector and to employment growth. Continued specialisation, changes in the composition of job qualifications, investment in technology and the restructuring of valuable creative channels have contributed to continued growth of labour productivity in industry that was up 2.9% on average each year over the period 2001-2006 (in comparison, work productivity in the European economy as a whole increased 1.1%). The Commission nonetheless stresses that the European industry remains specialised in general technology sectors and has not taken advantage of the rapid growth of some high-tech sectors or the opportunities provided by information and communication technologies (ICT). It also notes that the Union is comparatively slower, on the intra-sectoral front, when it comes to reallocating resources to the most productive companies, which reveals a high degree of inflexibility in the Union, and that the structure of European industry is slowly adjusting to market changes and to technological developments.
As a complement to the efforts deployed at national level to support the sound and dynamic industrial base in Europe, the new Community industrial policy is based on implementation of seven horizontal initiatives and as many sector-specific initiatives. In particular, there is the high level group on competitiveness, energy and the environment; the high level group on textiles and the strategy for protection of intellectual property; the EnginEurope initiative (mechanical engineering); the task force on competitiveness of the ICT sector; the pharmaceuticals forum; the defence industry forum; the CARS21 initiative (motor industry) and the LeaderSHIP 2015 initiative (shipbuilding).
The Commission believes that recent economic changes show it is not necessary to operate a fundamental change in proactive and non-interventionist industrial policy at Community scale. Nonetheless, the climate, globalisation and technological progress are as many challenges that exert competitive pressure on the European economy, compelling it to adapt. When it comes to climate change, the Commission stresses the need to pay special attention to two sectors: - the environmental goods and services industry and the high-energy-intensive industry. For the first, it provides for an action plan to be on the table early 2008 for lifting regulatory constraints and other obstacles that prevent full exploitation of new commercial outlets. For the second, it will seek to use various instruments (external energy policy, trade policy and industrial dialogue) and will put a strategic document on the table this autumn. When it comes to globalisation, Commission initiatives in 2007-2009 will have the main objective to safeguard access to raw materials and to improve access to external markets. On the subject of technological progress, most innovation and R&D indicators show that the Union is still greatly lagging behind on innovation compared to the United States and Japan. The Commission will therefore place emphasis on three priorities to stimulate innovation: integration of entrepreneurial “clusters” for collaboration with research institutes, suppliers, customers and competitors; the development of flagship markets to release the commercial potential of innovative products; and the increased use of norms.
The Commission also identifies areas where some of the ongoing initiatives should be strengthened: - simplifying and improving the regulatory environment and reducing the administrative burden on enterprises; optimal exploitation of synergies between protection of the environment, energy supply security and industrial competitiveness; and the transition towards a low-carbon and resource efficient economy; as well as the protection of IPR (intellectual property rights), and the interdependence between manufacturing and the service economy. (eh)