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1 #Renew2030 Boulevard A Reyers 80 B1030 Brussels Belgium SHAPING A FUTURE THAT S GOOD. Orgalim is registered under the European Union Transparency Register ID number: All rights 2019, Orgalim Editeur responsable: Malte Lohan, Director General

2 ABOUT ORGALIM Europe s technology industries at a glance Orgalim represents Europe s technology industries: companies that innovate at the crossroads of digital and physical technology from mechanical engineering, electrical engineering and electronics, to metal technology. Our industries develop and manufacture the products, systems and services that enable a prosperous and sustainable future. Orgalim commits to champion an EU policy agenda for sustainable growth; to support the industry in its transformation; and to advance dialogue between business, policymakers and citizens on the relationship of technology to society. We are shaping a future that s good. ORGALIM REPRESENTS: 44 Associations 23 Countries 32 National member associations 12 European sector associations The companies represented by Orgalim are at the forefront of the digital transformation of industry, enabling innovation across sectors to deliver solutions to major societal challenges in areas as diverse as energy, resource efficiency, mobility, the circular economy and healthcare. Based on the latest data gathered by Orgalim's economists, here are some key figures from our industries: Annual turnover billion euro - similar to the GDP of France Direct employment - around 30% of the total in EU industry Annual exports 2, million people VISION Europe in 2030 RENEW A new kind of industrial strategy EMBRACE Embracing innovation-led transformation ENABLE Enabling industry s long-term leadership TRANSFORM Transforming challenges into opportunities FORWARD Making it happen billion euro 3 Industries: mechanical engineering, electrical engineering and electronics, metal technology - that's around 1/3 of EU manufactured exports

3 TECHNOLOGY SOCIETY OPPORTUNITY A vision for Europe in 2030 Technology shaping a future that s good Orgalim believes that the future wellbeing and prosperity of society and the future of Europe s technology industries are inextricably linked. From sensors to advanced machinery, from robotics to smart energy grids, the solutions required to address the needs of the planet and its people will be driven by innovative technology. In these and many other fields, Europe s technology companies large, midsized and small are already global leaders or have the potential to become global leaders during the next decade. With the right conditions in place, the opportunities for European businesses are hugely promising. An EU under pressure For this to materialise, the EU needs to help its companies maintain leadership in the global innovation race. Yet the EU s ability to do so is currently being put to its most serious test to date. While other major economies are aggressively pushing to redefine the global order, populism and nationalism are eroding Europe from within. After seventy years of peace and unprecedented economic development, Europe s citizens are no longer convinced that the Union can improve their lives. Were Europe to fragment, or to fall behind other major economies in terms of investment and innovation, European technology companies would lose their leadership at home and abroad. 2 This is a time of immense opportunity for Europe. Over the coming decade, technological innovation will create change at a pace never seen before. If policymakers, civil society and businesses work together to make the right decisions, the potential for societal and economic progress is enormous. As Europe leads the global response to climate change, the EU will pave the way for an age beyond carbon. We will redefine how we think about natural resources and industrial ecosystems. Technology-led transformation will reinvigorate our economies, spread prosperity and reinvent the nature of work. Progress in medical and ambient assisted living technology will allow us to get more out of life than ever before. Cities will address the scourges of congestion, pollution and growing inequality. Critically, we will demonstrate that the pursuit of social, environmental and economic sustainability can go hand in hand with renewed growth and competitiveness, creating more and better jobs. 3

4 4 A RENEWED EUROPE An industrial strategy to pave the way Orgalim believes a new type of industrial strategy is required to address these challenges head-on, for the benefit of businesses and citizens alike. We need to put globalisation and technology at the service of all of Europe s citizens, and to turn our historic strengths and core values into future drivers of prosperity. This, at heart, should be the ambition of a progressive and forward-looking industrial strategy: beyond assuring Europe s sustainable growth, beyond addressing the critical societal challenges of our time, it should be about reinvigorating citizens shared belief in the EU and championing the European way in the 21st century at home and abroad. Putting innovation at the heart of the EU At its simplest, a progressive and forwardlooking industrial strategy is about putting innovation at the heart of the EU s future. It should build on one of the biggest assets of European industry: its strength in managing complex cross-domain, cross-disciplinary projects; in co-creation between large, midsized and small companies, research institutes and universities. This ability of Europe, combined with many years of industrial know-how, is a key differentiator in the global arena. Putting industry in the driving seat of complex cross-disciplinary projects brings the required sense of urgency into a rapidly evolving technology landscape, while building a structural approach for Europe towards a trusted, innovative and inclusive future. And while the unprecedented pace of technological innovation over the coming decade will open up new opportunities, it will also create disruption across the wider economy. Industry sectors from energy to transport and from manufacturing to agriculture are being transformed; entire business models are being reinvented. New ecosystems will emerge, bringing together large companies, midcaps, SMEs and start-up companies into powerful innovation networks. How policymakers respond to these new dynamics will determine whether we succeed or fail. Three imperatives to make it happen From taxation to competition law, from social policy to education, every policy area will have a role to play. Above all else, Orgalim believes there are three overarching strategic imperatives at EU level that will determine whether or not the potential of Europe s technology industries to help reinvigorate the European way can be realised. Delivering these strategic imperatives will require bold and urgent decisions on the part of EU policymakers. Member States will also have a major role to play, as we will only succeed by working together across all levels. Our vision is clear but we need ambitious and forwardlooking action to make it a reality. 5

5 Strategic Imperative 1 WHERE WE STAND The digitalisation of industry and the Digital Single Market have been high on the EU political agenda throughout the Juncker Commission mandate. Progress was made on important legislative questions, including the legal data regime and cybersecurity. Yet many policy issues remain to be resolved, not least to ensure that society fully accepts and embraces the transformation driven by digital innovation. WHERE WE WANT TO GO Across all parts of industry, there remains enormous untapped potential both for individual companies and for Europe s economy as a whole if the innovationled transformation now underway can be broadened and accelerated. With the right policies in place, Europe s technology companies will continue to lead this transformation both within their own sectors and as enablers across all other industries. Embrace the innovation-led transformation of European industry HOW DO WE GET THERE? Help Europe s technology companies remain at the cutting edge of new technologies, in particular artificial intelligence, seizing the opportunities inherent in Europe s industrial strengths Develop a European cybersecurity infrastructure that enables resilient, flexible and market-based cybersecurity solutions for a connected Europe Create a future-proof EU data framework that drives industry s transformation while respecting fundamental rights and intellectual property Fast-track the Europe-wide roll-out of first-class communication networks, such as 5G and fibre optics, to create a Gigabit Society 7

6 Strategic Imperative 2 WHERE WE STAND WHERE WE WANT TO GO While Europe s technology industries have been competitive in an international context in recent years, the economic and geopolitical landscape is being redrawn by other major economies in ways that do not serve our globally oriented European industry. To safeguard the long-term competitiveness of Europe s technology companies, Europe needs to rethink how it can strengthen its industries in a global context. The aim of EU policy should not be to try to manage the growing complexity of evolving business models and value networks resulting from innovation-led transformation. Rather, it should define the fundamental objectives we want to achieve in Europe and provide the required framework conditions for industry-led solutions to help deliver these. Abroad, it should continue to open up markets for European products and services. Enable European industry s long-term global leadership HOW DO WE GET THERE? Stand up for open and rules-based cross-border trade and improve access to international markets for Europe s technology companies Ensure that EU investment policy and funding programmes, especially Horizon Europe, effectively support European industry s future global leadership Recommit to the essence of the EU s Internal Market: a level playing field for safe products and services, governed by business-friendly legislation that is resilient to technological and economic change and effectively enforced by market surveillance authorities Adopt modern and agile regulatory approaches that deliver policy objectives in the most costeffective manner possible 9

7 Strategic Imperative 3 WHERE WE STAND From the clean energy transition, climate change and resource efficiency to the future of mobility and demographic imbalances, the EU will over the coming years deploy new policies, including legislation, to address the major societal challenges of our time. Properly implementing the increasingly ambitious energy and climate targets, in particular, will transform many aspects of society and industry. WHERE WE WANT TO GO European technology companies are leaders in providing solutions to these challenges, and will be at the forefront of the development and delivery of clean technologies and systems. With the right policies in place to systematically promote sustainability and as a benchmark the UN Sustainable Development Goals, Europe can ensure these industries continue to maintain a global edge, driving growth and prosperity both at home and worldwide. Transform societal challenges into future drivers of prosperity HOW DO WE GET THERE? Set the standard in the global lowcarbon and energy transition required to implement the Paris Agreement and subsequent national plans Drive systemic change to promote the sustainable use of resources and implementation of the UN Sustainable Development Goals: do more with less Create conditions for sustainable and connected mobility and buildings; making them equitable, efficient, safe and climate responsive Encourage and support the adaptation of education and training systems to a digitalised world of work 11

8 12 FORWARD The time to act is now Europe s technology industries have a clear vision for the EU in A Europe where innovation drives global competitiveness. A Europe where a strong industry spreads prosperity throughout the economy. A Europe where technology responds to citizens needs and improves their quality of life. Orgalim believes that our industries can help make this vision a reality if the right strategy is in place at EU level. We have put forward a roadmap to make it happen: embrace the innovation-led transformation of industry; enable European technology companies global leadership; transform societal challenges into drivers of prosperity. If policymakers can work with us to deliver these three strategic imperatives, together we will shape a future that is good for industry, society and Europe as a whole. The time to act is now our industries stand ready to play their part. For more information regarding Orgalim s detailed positions on the specific policy objectives outlined here, please visit or contact Director General Malte Lohan to arrange a meeting. At this crucial moment for Europe, we need decisive political leadership to unlock our continent s future drivers of prosperity, sustainability and wellbeing. The time to act is now and our technology industries stand ready to play their part. Malte Lohan Director General, Orgalim

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