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The European Union’s Industrial Policy: What are the Main Challenges?

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Abstract

This policy report stakes a stance on industrial policy in the European Union in the light of the revived interest in the subject and the most pressing challenges ahead. In the current global context these challenges are (i) to keep pace at the technology frontier with the technologically most advanced economies; (ii) to meet the challenge of fast catching-up emerging economies; (iii) to contribute to the convergence and cohesion processes within the EU; and (iv) to deal with climate change and environmental sustainability issues more generally. A quantitative exercise that makes use of the EU’s budget data, including the structural funds, and member states state aid expenditures is used to identify the EU’s current industrial policy priorities. The results are the basis for an assessment of the extent to which the key challenges are addressed at the supranational level and which aspects are primarily dealt with by national governments.

Suggested Citation

  • Michael Landesmann & Roman Stöllinger, 2020. "The European Union’s Industrial Policy: What are the Main Challenges?," wiiw Policy Notes 36, The Vienna Institute for International Economic Studies, wiiw.
  • Handle: RePEc:wii:pnotes:pn:36
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    Cited by:

    1. Robert Stehrer, 2020. "Konvergenz, Produktionsintegration und Spezialisierung in Europa seit 1995," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue Q1-Q2/20, pages 49-59.

    More about this item

    Keywords

    Industrial policy; EU’s industrial policy; smart specialisation; mission-oriented industrial policy; EU structural funds; EU cohesion policy; EU competitiveness; EU Green Deal;

    JEL classification:

    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • Q59 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Other
    • F68 - International Economics - - Economic Impacts of Globalization - - - Policy

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