An Integrated Industrial Policy for the Globalisation Era

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1 Ref. Ares(2014) /08/2014 An Integrated Industrial Policy for the Globalisation Era John Farnell Director, DG Enterprise and Industry

2 HEADING FOR 2020 sustainable inclusive smart

3 7 flagship initiatives Smart Sustainable Inclusive Innovation Innovation «Innovation Union» «Innovation Union» Education «Youth on the move» Digital society «A digital agenda for Europe» Climate, energy and mobility «Resource efficient Europe» Competitiveness «An industrial «policy An industrial for the globalisation policy for the era» globalisation era» Employment and skills «An agenda for new skills and jobs» Fighting poverty «European platform against poverty» 3

4 Innovation Union Why? The crisis EU has lost six million jobs, 1000 Bn annual GDP Societal challenges Health and ageing, environment protection, energy efficiency, climate change Innovation emergency!

5 What is Innovation Union? Highlights Strategic approach Partnership with Member States From idea to market Tackling weaknesses Under-investment Fragmentation Framework conditions Building on strengths Broad concept of innovation Involving all actors Making the most of available resources Collaborating internationally European Innovation Partnerships European Research Area framework Streamlined EU programmes New financial instruments Reform of standardisation system Public procurement of innovation Social innovation pilot Stronger monitoring Innovation Convention A distinctive European approach to innovation

6 What is Innovation Union? Examples of actions Independent multidimensional university ranking system and launch of business-education «knowledge alliances» (2011) Regime for cross border Venture Capital funds (2012) Review State Aid framework, to enable support to all forms of innovation (2011) Rapid agreement on EU patent Establish Design Leadership Board & Creative Industries Alliance (2011) European Innovation Partnerships : smart cities, water, mobility

7 Innovation Union website Innovation Facebook page Innovation unlimited blog

8 7 flagship initiatives Smart Sustainable Inclusive Innovation «Innovation Union» Education «Youth on the move» Digital society «A digital agenda for Europe» Climate, energy and mobility «Resource efficient Europe» Competitiveness «An industrial «policy An industrial for the globalisation policy for the era» globalisation era» Employment and skills «An agenda for new skills and jobs» Fighting poverty «European platform against poverty» 8

9 The Commission is about to present «An industrial policy for the globalisation era»

10 From recession to recovery Manufacturing and construction output index (2005=100) M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M07 year Manufacturing output Construction output

11 «An industrial policy for the globalisation era» Improving horizontal and sectoral framework conditions

12 All industries, all sectors are important! Food products Textiles Pulp and paper Chemicals Security and space Non-metallic products Basic metals Electrical engineering Machine building Construction Motor vehicles 12

13 Does one size fit all? -- No!! Sectoral output performance - February Percentage change in three months up to Feb 2009 from the peak - Q C21 0 C10 C10 Food products F_CC2 C11 Beverages C12 C12 Tobacco products -5 C30 C18 C13 Textiles C32 C19 C14 Wearing apparel C11 C15 Leather and related products -10 C14 C16 Wood and of products of wood C17 C17 Printing and reprod. of recorded media C18 Paper and paper products -15 F_CC1 C19 Coke and refined petroleum products C28 C26 C31 C15 C20 Chemicals and chemical products -20 C21 Basic pharmaceutical products C27 C20 C22 Rubber and plastic products C25 C16 C22 C23 Other non-metallic mineral products C24 Basic metals C13-25 C23 C26 Computer, electronic and optical products C25 Fabricated metal products C27 Electrical equipment -30 C28 Machinery and equipment n,e,c, C24 C29 Motor vehicles, trailers and semi-trailers C30 Other transport equipment -35 C31 Furniture C32 Other manufacturing C29 F_CC1 Buildings -40 F_CC2 Civil engineering Percentage change in three months up to Feb 2009 from the preceeding three months

14 «An industrial policy for the globalisation era» Improving horizontal and sectoral framework conditions Wider integration of other policy areas affecting competitiveness

15 Numerous policies impact on the Competitiveness of Industry! Taxation Single Market Environment Climate Public services Energy Competition Transport R & D and innovation Labour market 2

16 «An industrial policy for the globalisation era» Improving horizontal and sectoral framework conditions Wider integration of other policy areas affecting competitiveness Increased stress on industrial innovation and global value chains Accelerate shift to a low carbon resource-efficient economy Need for a more co-ordinated European policy response

17 A car is more than the sum of its parts -- Süddeutsche Zeitung -- and so should be the European Union!

18 Don t forget the division of labour in a market economy! Automotive News

19 In close co-ordination with Member States Implement smart regulation and Small Business Act Improve market surveillance and enforcement of intellectual property rights Address transport and energy bottlenecks Develop and share best practices on access to finance Co-operate on key enabling technologies Set out ambitious skill strategies for industry. Promote 20% target on industrial energy efficiency Co-operate on environmental technologies

20 The Commission will present on 27 October a Single Market Act

21 Stronger emphasis on the External dimension of the Internal Market Negotiation of multilateral and bilateral Trade agreements with focus both on market access and on regulatory issues, including public procurement, IPR and subsidies Promotion of European standards and continued work on the adoption of global standards Integration of the external dimension in Impact assessments of new legislative proposals in the EU

22 Thank you for your attention!

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