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Machok Y.V.

Kyiv national economic university named after Vadym Hetman, Ukraine

New impetus to the EU industrial innovation policy

A competitiveness of any industrial economy is the main point of economical policy. European Union as one of the biggest economy of the world set this question in priority too. A competitive industry is the key point if Europe is to remain a global economic leader.

European Commission has set out a wide-ranging strategy that aims to maintain and support a strong, diversified and competitive industrial base in Europe for promoting Innovation European industrial policy.

The strong development of EU industry is impossible without support by both horizontal and sectoral policies at member-states and European levels. According to this thesis, European Commission proposed a new approach to industrial policy.

This fresh approach is characterised by:

1) Bringing together a horizontal basis and sectoral application. The existing challenges require demanding adjustment efforts and ambitious transition strategies by different economic sectors. All sectors are important and the Commission will continue to apply a tailor made approach to all sectors. Where relevant, the Commission will consider appropriate measures to inform consumers and promote industrial excellence in given sectors. Coordinated, European policy responses. The division of labour across the whole globe is intensifying and the concepts of national sectors or industries with little interaction with other sectors or the rest of the world are becoming less relevant.

2) The whole value and supply chain must be considered, from access to energy and raw materials to after-sale services and the recycling of materials. And some parts of this chain are bound to be outside Europe; hence it is necessary for all industries to have a ‘globalisation reflex’.

3) The Commission will regularly report on the EU’s and Member States’ competitiveness and industrial policies and performance. As many of the relevant framework conditions for a competitive and sustainable industry are set at Member State level, the monitoring should not only cover competitiveness performance but also competitiveness policies [1, p.4].

This industrial base should play an important role in meeting crucial objectives for the European economy, such as creating new jobs and promoting sustainable growth.

Last world economy crisis showed that no states can resist global instability and only collaboration is the right way of EU industrial development. So, all economical strategies of EU countries has been changed by first global economical crisis and national states promoted some short-term rescue and recovery actions. Most of them stopped development of long-term structural challenges, in particular maintaining global competitiveness, climate change, energy, population ageing, skills and knowledge etc.

After global economical crisis the main point of European industrial policy should be an achievement of new industrial strategy goals. Those goals are set out in new Lisbon strategy – Europe 2020.

Main of them are the next:

1. Employment

- 75% of the 20-64 year-olds to be employed)

2. R&D / innovation

           - 3% of the EU's GDP (public and private combined) to be invested in R&D/innovation)

3. Climate change / energy

           - greenhouse gas emissions 20% (or even 30%, if the conditions are right) lower than 1990

           - 20% of energy from renewables

           - 20% increase in energy efficiency

4. Education

           - Reducing school drop-out rates below 10%, at least 40% of 30-34–year-olds completing third level education

5. Poverty / social exclusion

- 20 million fewer people in or at risk of poverty and social exclusion [2].

This new strategy is the main impetus for changing the EU industrial policy. The new coordinated policy response proposed by the European Commission identifies several key areas where action is needed to boost the competitiveness and sustainability of European industry.

Key areas for action in industrial areas are [3]: SME’s development, setting of new legislation to reduce costs for European businesses, as well as strengthening efforts to promote European standards, upgrade Europe's communication, transport and energy infrastructure and services in order for them to serve industry more efficiently etc.

In our opinion it’s necessary to make a special conditions for development of small and medium enterprise, but not only in EU, as it European Commission see, bu also in main partners countries. It’s much more difficult to improve conditions for SME’s development in neighbours countries, as in member-states. Better collaboration with main trade partners is one of the main priority of any industrial development.

According to European Neighbourhood Policy, the relationship with partner countries is also for the big priority for European Commission and member – states.  In our opinion the main ways of mutual development with partners states in industrial sphere need to be addresses the challenges of space-related and energy-intensive industries, as well as tackling the insufficient sector-specific innovation performance. Actions in these areas should improve framework conditions, increase resource efficiency, support innovation and international partnership.

Meeting the challenges of global competition and increased sustainability requires the achievement of excellence in innovation. `for the last years innovation is a key driver for industrial development, improving of labor productivity, increased energy and material efficiency, the improved performance of goods and services, and the generation of innovative markets. However, European industrial subjects are not good enough at turning its excellence in ideas into marketable goods and services. EU need new  industrial innovation policy, that will encourage the much faster development and commercialisation of goods and services and ensure that EU firms are first onto the global markets. We are for sure, that without innovation no economies should be competitive and for non-innovative industrial subjects most of world markets are closed. So, Europe’s industry will be unable to be leader of global market without reaching the goals of strategy Europe 2020. But in our opinion, EU industry has so much problems in innovative sphere in comparison to USA, Japan etc., that European Union can not be stable leader of world competitiveness. Innovation can not be created without innovation system, such as Innovation Union, but the main point of innovation should be clusters. Eu has good potential for clusters development, but not enough compere to US’s clusters. In our opinion the main way of industrial development of European industry is clasterization, especially creation of innovation clusters.

 

Bibliography:

1) COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS  An Integrated Industrial Policy for the Globalisation Era Putting Competitiveness and Sustainability at Centre Stage Brussels, COM(2010) 614, - 33p.

2) Europe 2020 targets http://ec.europa.eu/europe2020/targets/eu-targets/index_en.htm

3) Industrial policy takes centre stage http://ec.europa.eu/enterprise/magazine/articles/industrial-policy/article_10834_en.htm