Local economies in a globalizing world: The role of European industrial policy

Abstract

The crucial importance of manufacturing for the European Union (EU) and the need for a new growth model for the European economy has been recognized and documented. Whilst the major responsibility for industrial competitiveness and sustainability lies within industry itself, the EU, Member States and individual regions also have the responsibility to establish the right institutional framework. Among the priorities identified are the better integration of the European market to allow better conditions for industry specialization and trans-national cooperation; closer cooperation in Member State and EU technology policies; better coordination of social, economic and environmental policies; and better coordination between actors at the local, regional, national and European level, with stronger governance at the European level. To be successful, the new approach to industrial policy at the European level must be complemented by a closer link between EU and national level policies and between the EU level and regional and local authorities.