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A Systemic Industrial Policy to Pave a New Growth Path for Europe

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  • Karl Aiginger

Abstract

The European Union is a successful integration experiment, with an increasing number of member countries and an unexpected depth of integration. According to many indicators, it is the largest economic region in the world, leading in many "beyond GDP" indicators representing well being including non material goals. The EU has, however, lost economic dynamic in the last decades and has failed to catch up with the USA in technology and per-capita GDP. Europe has internal disequilibria, its population is ageing and it did not follow its own innovation strategy. Three questions arise in this context: 1. whether Europe should try to go back to the core (deepening integration for a smaller homogenous group), 2. whether it should go for a low road strategy of competitiveness (lowering wages and taxes, forfeiting high quality specialisation and sophisticated standards), and 3. whether it should actively try to develop its own "European Model" and offer this model to its neighbors. A European research project was tendered by the European Commission in order to analyse options for Europe in the globalised world. This 7th Framework Programme project, with the acronym "WWWforEurope", will provide evidence-based research in support of the Europe 2020 Strategy in its four-year in-depth research to be carried out by WIFO and 32 international partners. One important aspect of this strategy is a new "Systemic Industrial and Innovation Policy" (SIIP) which is pulled by the vision of a new growth path of social development and higher emphasis on sustainability. SIIP is further pushed by internal and external competition, openness as well as new technologies and capabilities. This working paper provides some first tentative answers to the three raised questions above. It furthermore sketches the broader research question, challenges and research areas to be answered in the WWWforEurope programme.

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  • Karl Aiginger, 2012. "A Systemic Industrial Policy to Pave a New Growth Path for Europe," WIFO Working Papers 421, WIFO.
    • Handle: RePEc:wfo:wpaper:y:2012:i:421
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    References listed on IDEAS

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    Cited by:

    1. Karl Aiginger, 2014. "Industrial Policy for a Sustainable Growth Path. WWWforEurope Policy Paper No. 13," WIFO Studies, WIFO, number 47261, February.
    2. Karl Aiginger, 2013. "The "Greening" of Industrial Policy, Headwinds and a Possible Symbiosis," WIFO Working Papers 450, WIFO.
    3. Santos, Eleonora & Khan, Shahed, 2018. "Public Policies, Innovation and Convergence," EconStor Preprints 183508, ZBW - Leibniz Information Centre for Economics.
    4. Shahid Yusuf, 2014. "There was once a Korean Model," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 28(2), pages 88-96, November.
    5. Karl Aiginger, 2016. "Deficits and Strengths in Austrian Competitiveness," FIW Policy Brief series 029, FIW.
    6. Ádám Török & Gyöngyi Csuka & Bernadett Kovács & Anita Veres, 2013. "The "Resurrection" of Industrial Policy in the European Union and its Impact on Industrial Policy in the New Member Countries. WWWforEurope Working Paper No. 26," WIFO Studies, WIFO, number 46887, February.
    7. Manfred Overhaus & Ulrich Maas & Aiginger. Karl & Margit Schratzenstaller-Altzinger, 2012. "A Way Out of Debt Budgets: Is it Possible to Repay Public Debt?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 65(05), pages 03-14, March.
    8. Karl Aiginger, 2013. "A New Strategy for the European Periphery," WIFO Working Papers 443, WIFO.
    9. Klaus S. Friesenbichler, 2013. "Innovation in the Energy Sector. WWWforEurope Working Paper No. 31," WIFO Studies, WIFO, number 46917, February.
    10. Andreas Reinstaller, 2013. "An Evolutionary View on Social Innovation and the Process of Economic Change. WWWforEurope Working Paper No. 43," WIFO Studies, WIFO, number 47018, February.
    11. Georg Licht & Bettina Peters & Christian Köhler & Franz Schwiebacher, 2014. "The Potential Contribution of Innovation Systems to Socio-Ecological Transition. WWWforEurope Deliverable No. 4," WIFO Studies, WIFO, number 47502, February.
    12. Annamaria Simonazzi & Andrea Ginzburg & Gianluigi Nocella, 2013. "Economic relations between Germany and southern Europe," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 37(3), pages 653-675.
    13. Karl Aiginger, 2014. "Industrial Policy for a Sustainable Growth Path," WIFO Working Papers 469, WIFO.
    14. Christian Grabas & Alexander Nützenadel, 2013. "Industrial Policies in Europe in Historical Perspective. WWWforEurope Working Paper No. 15," WIFO Studies, WIFO, number 46867, February.
    15. Eckhard Hein & Daniel Detzer, 2014. "Coping with imbalances in the Euro area: Policy alternatives addressing divergences and disparities between member countries," Working papers wpaper63, Financialisation, Economy, Society & Sustainable Development (FESSUD) Project.
    16. Karl Aiginger & Susanne Bärenthaler-Sieber & Johanna Vogel, 2013. "Competitiveness under New Perspectives. WWWforEurope Working Paper No. 44," WIFO Studies, WIFO, number 47019, February.
    17. Karl Aiginger, 2013. "A New Strategy for the European Periphery. WWWforEurope Policy Paper No. 1," WIFO Studies, WIFO, number 46673, February.
    18. Coulter, Steve, 2017. "Skill formation, immigration and European integration: the politics of the UK growth model," LSE Research Online Documents on Economics 84544, London School of Economics and Political Science, LSE Library.
    19. Susanna Ulinski, 2015. "Corporate Social Innovation as a Driver of Performance and Welfare. WWWforEurope Policy Paper No. 25," WIFO Studies, WIFO, number 58500, February.
    20. Michael Böheim, 2016. "Umweltpolitik als Kernelement einer systemischen Industriepolitik zur Förderung eines nachhaltigen Wirtschaftswachstums," WIFO Monatsberichte (monthly reports), WIFO, vol. 89(1), pages 39-46, January.
    21. Karl Aiginger & Susanne Bärenthaler-Sieber & Johanna Vogel, 2015. "Competitiveness of EU versus USA. WWWforEurope Policy Paper No. 29," WIFO Studies, WIFO, number 58553, February.
    22. Karl Aiginger, 2013. "The "Greening" of Industrial Policy, Headwinds and a Possible Symbiosis. WWWforEurope Policy Paper No. 3," WIFO Studies, WIFO, number 46712, February.
    23. Karl Aiginger, 2012. "Sozialpolitik bei Budgetengpässen und Fiskalpakt," WIFO Working Papers 440, WIFO.

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    Keywords

    European socioeconomic model; EU 2020 Strategy; industrial policy; innovation strategy;
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