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Symposium 2015

Developing Modern Sustainable Industrial Policies through Innovation-focused "Co-opetition"

The Challenge

How to design an industrial policy for Europe, which spurs innovation and enables European industries to lead in the low carbon “space race”? This is a key challenge related to two agendas on which international attention is currently focused: the COP21 of the United Nations Framework Convention on Climate Change in Paris, and Europe's recent agenda for growth, jobs, and competitiveness. Much like climate policy, the need for a new industrial policy is widely acknowledged among politicians, businesses, and the wider society. However, there is little confidence that an innovative and effective industrial policy can be designed to fit all sectors, regions, and stakeholders alike. Yet, with a low carbon market estimated at more than 4.5 trillion euros, progress in this area is vital. One promising approach is to develop a modern understanding of the role of public policy and free markets. With this in mind, the idea of "co-opetition" seeks to stimulate industrial innovation through a combination of both cooperation and competition among countries and enterprises.

    It should be explored how policy-makers, industrialists, and investors can work together to create a new industrial policy. Questions include:

    • How can Europe and its Member States best design and deliver an industrial policy that allows to simultaneously achieve growth and decarbonization, while also stimulating innovation and competition?
    • What are areas in which active cooperation could be most beneficial to achieve a transformative innovation agenda along the whole industrial value-chain?
    • What should be the institutional process for designing a modern sustainable industrial policy for a country, and which stakeholders should be involved?


    This session is organized by the Industrial innovation for Competitiveness (i24c). Please check out the tabs below for additional facts and information.

      Solutions

      Solution
      Symposium 2015

      Stimulating Low-Carbon Innovation

      Stimulating Low-Carbon Innovation

      Stimulating Low-Carbon Innovation

      Solution
      Symposium 2015

      A Modern Industrial Strategy Prioritizing Innovation, Ecosystems and Dialogue

      A Modern Industrial Strategy Prioritizing Innovation, Ecosystems and Dialogue

      A Modern Industrial Strategy Prioritizing Innovation, Ecosystems and Dialogue

      Solution
      Symposium 2015

      Defining Competitiveness—On how to Measure the Largely Underestimated Role and Overall Impact of Innovation

      Defining Competitiveness—On how to Measure the Largely Underestimated Role and Overall Impact of Innovation

      Defining Competitiveness—On how to Measure the Largely Underestimated Role and Overall Impact of Innovation

      Background Paper

      Background Paper
      Symposium 2015

      Developing Modern Sustainable Industrial Policies through Co-opetition

      Polity, Academia, Business, Civil Society

      Virtual Library

      Virtual Library File
      Symposium 2015

      Industrial Policy and the Energy Union, Institute for Advanced Studies

      This presentation highlights that Europe's industry has many advantages in the global competitiveness race and that the de-industrialisation trend is not limited to the EU. It argues that Europe needs ...

      This presentation highlights that Europe's industry has many advantages in the global competitiveness race and that the de-industrialisation trend is not limited to the EU. It argues that Europe needs a broader understanding of manufacturing and of the goals of industrial policy, which should target innovation in advanced manufacturing. Industrial policy should be seen as an institutional process based on the principles of embeddedness, discipline and accountability. Rodrik argues that it is important not to exaggerate what industrial policy can accomplish (e.g., it cannot reverse inevitable de-industrialisation). Industrial policy is in fact a process and a frame of mind - it is not a set of policy tools and sectoral priorities. Finally, to achieve a strong industrial policy, the quality of government-business dialog is critical.

      Virtual Library File
      Symposium 2015

      Europe's low-carbon transition: Understanding the challenges and opportunities for the chemical sector

      In a study on the relationship between emission reductions and competitiveness in the chemical sector, ECF highlights the need for a broader notion of  industrial competitiveness. The report demonstr ...

      In a study on the relationship between emission reductions and competitiveness in the chemical sector, ECF highlights the need for a broader notion of  industrial competitiveness. The report demonstrates the net positive impact that decarbonisation policies could have on stimulating Europe's competitive advantage in this sector. But the study also highlights the increased integration and governance complexity inherent in unlocking the emissions abatement potential from circularity, advanced materials innovation and cross-sector collaboration. It additionally underscores the need to properly recognise where public policies need to support private sector investment. As a major share of identified emission reduction opportunities lie in cross-company and cross-sector integration, the authors raise the question of how industry and policy makers can interact effectively to profit from these opportunities.

      Virtual Library File
      Symposium 2015

      Advanced Manufacturing – advancing Europe, Report of the Task Force on Advanced Manufacturing for Clean Production

      The report presents an overview of measures taken recently to foster the adoption of advanced manufacturing by European industry in order to increase the competitiveness of European industry. It recal ...

      The report presents an overview of measures taken recently to foster the adoption of advanced manufacturing by European industry in order to increase the competitiveness of European industry. It recalls that manufacturing is a key driver of jobs and growth in Europe. The report stresses that removing obstacles, such as skills shortage, funding, or lack of market pull, to the deployment of advanced manufacturing will be key to Europe's industrial competitiveness. It argues that in order to give Europe a competitive lead in the new industrial revolution, the European Commission, the Member States and the industry need to engage in a partnership for modernisation.

      Virtual Library File
      Symposium 2015

      Better growth, Better Climate

      Rapid technological innovation and new investment in infrastructure are making it possible to tackle climate change at the same time as improving economic performance. Over the next 15 years, US $90 t ...

      Rapid technological innovation and new investment in infrastructure are making it possible to tackle climate change at the same time as improving economic performance. Over the next 15 years, US $90 trillion will be invested in infrastructure in the world’s cities, agriculture and energy systems. The world has an opportunity to drive investment in low-carbon growth, bringing multiple benefits including jobs, health, business productivity and quality of life. The NCE report suggests that there is a better story for Europe than defending business-as-usual and the ‘bad’ choices that are inherent in it. It is a story of ‘good choices’, and one that outlines the basic actions needed to get the European economy moving, while also acting on climate change.
      This involves four levers that can lead to better growth and better climate:

      1. Boosting low-carbon infrastructure investment
      2. Promoting innovation
      3. Promoting resource efficiency
      4. Implementing better policies, specifically revitalizing carbon markets, in ways that can reduce investor uncertainty and improve the efficiency of transitioning to a low-carbon, growing economy.
      Virtual Library File
      Symposium 2015

      The Definition of Competitiveness

      Virtual Library File
      Symposium 2015

      Defining competitiveness – On how to measure the largely underestimated role and overall impact of innovation

      Despite the fact that innovation is generally seen as an important factor driving economic success, a lot of uncertainty remains about its quantitative importance and impact on a firm’s or a country ...

      Despite the fact that innovation is generally seen as an important factor driving economic success, a lot of uncertainty remains about its quantitative importance and impact on a firm’s or a country’s competitiveness. Due to the better availability of cost statistics compared to softer factors like innovation, there is a clear bias towards costs as the determining factor. Nevertheless, a new stream of research and work in recent years tries to better capture and quantify innovation and its importance. This very tentative work seems to converge to an estimated relative impact on competitiveness of around 30 to 40 percent. If this scope of influence were confirmed, it would force all parties involved to profoundly re‐think competitiveness policies, as those still are overly concentrated on cost measures.