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A ‘Manufacturing Imperative’ in the EU – Europe's Position in Global Manufacturing and the Role of Industrial Policy

Author

Listed:
  • Neil Foster-McGregor

    () (The Vienna Institute for International Economic Studies, wiiw)

  • Mario Holzner

    () (The Vienna Institute for International Economic Studies, wiiw)

  • Michael Landesmann

    () (The Vienna Institute for International Economic Studies, wiiw)

  • Johannes Pöschl
  • Robert Stehrer

    () (The Vienna Institute for International Economic Studies, wiiw)

  • Roman Stöllinger

    () (The Vienna Institute for International Economic Studies, wiiw)

Abstract

Summary Industrial policies in the EU have markedly shifted towards ‘horizontal’ measures and framework polices. The sustained de-industrialisation of several European economies and a general perception that countries with a strong manufacturing base emerged from the crisis in a strengthened position put the issue of industrial capacities back on the agenda. This process was paralleled by a renewed interest in specific industrial policies targeted at the manufacturing sector. Against this background, this report revisits some of the main arguments in favour of a manufacturing imperative and discusses them in a European context also showing the limitations and caveats of these arguments. It proceeds by identifying the main challenges ahead of European manufacturing given the structural changes that occurred in the EU over the period 1995 to 2011. It also provides an analysis of a number of industrial policy measures that are important in a European context such as state aid by EU Member States, public R&D support for firms and the role of initial vocational training systems as a potential ‘soft’ industrial policy tool. Based on the results of the analysis, the report summarises the policy implications and offers recommendation to master the major structural challenges that lie ahead of European industry.

Suggested Citation

  • Neil Foster-McGregor & Mario Holzner & Michael Landesmann & Johannes Pöschl & Robert Stehrer & Roman Stöllinger, 2013. "A ‘Manufacturing Imperative’ in the EU – Europe's Position in Global Manufacturing and the Role of Industrial Policy," wiiw Research Reports 391, The Vienna Institute for International Economic Studies, wiiw.
  • Handle: RePEc:wii:rpaper:rr:391
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. LOPES, Joao Carlos & SANTOS, Ana, 2016. "Vertical Specialization, Global Value Chains And International Trade: The Rubber And Plastics Industry In Portugal And Comparison With Northern And Southern Eu Countries," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 16(2), pages 15-28.
    2. Amat Adarov & Mario Holzner & Luka Sikic, 2016. "Backwardness, Industrialisation and Economic Development in Europe," wiiw Balkan Observatory Working Papers 123, The Vienna Institute for International Economic Studies, wiiw.
    3. Patrick Minford & Sakshi Gupta & Vo P.M. Le & Vidya Mahambare & Yongdeng Xu, 2015. "Should Britain Leave the EU?," Books, Edward Elgar Publishing, number 16679.
    4. Guillaume ASSOGBA & Samuel KLEBANER, 2015. "Vers un cadre d’analyse institutionnaliste de la politique de filière : Quelle cohérence pour la politique de filière française ?," Cahiers du GREThA 2015-26, Groupe de Recherche en Economie Théorique et Appliquée.
    5. Roman Stöllinger, 2016. "Structural Change and Global Value Chains in the EU," wiiw Working Papers 127, The Vienna Institute for International Economic Studies, wiiw.
    6. Valeria Cirillo & Dario Guarascio & Mario Pianta, 2014. "Will Europe’s industry survive the crisis? Competitiveness, employment and the need for an industrial policy," Working Papers 1408, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2014.
    7. Matteo Lucchese & Leopoldo Nascia & Mario Pianta, 2016. "Industrial policy and technology in Italy," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 43(3), pages 233-260, September.
    8. Valeria Cirillo & Marta Fana & Dario Guarascio, 2017. "Labour market reforms in Italy: evaluating the effects of the Jobs Act," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 34(2), pages 211-232, August.
    9. Roman Stöllinger, 2016. "Structural change and global value chains in the EU," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 43(4), pages 801-829, November.
    10. repec:rnp:wpaper:2861 is not listed on IDEAS
    11. Marina Tkalec & Maruska Vizek, 2014. "Real estate boom and export performance bust in Croatia," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics, vol. 32(1), pages 11-34.

    More about this item

    Keywords

    industrial policy; state aid; innovation support; competitiveness; structural change;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods

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