Industrial policy, Smart Specialisation, COSME Tallinn, 7 March 2014
1. Industrial policy: priorities and focus areas 2. Smart Specialisation and Industrial Programmes 3. COSME
Industry in the EU economy Leading innovation Main source of exports 100 100% 90 90% 80 80% 70 70% 60 60% 50 50% 40 40% 30 30% 20 20% 10 10% 0 AT BE DE FI FR UK NL CZ ES EE EL HU IE IT PL PT SK SI CN JP KR US Expenditure in R&D Value added 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Industry Others Share of manufacturing on value added and privater&d expenditure Share of manufacturing on EU-27 Exports Source: Industrial Competitiveness Report (2013) Source: Eurostat
Industrial competitiveness: priorities I. Industrial Modernisation through investment, innovation and technological progress II. Access to Markets: the potential of EU Single Market and increase internationalisation of EU firms III.Access to Production Inputs: affordable access to finance, energy, raw materials and skills IV.Business Environment and Entrepreneurship with particular focus on SME creation and growth
Industrial modernisation and investment Policy and legislation: Review of competitiveness and regulatory frameworks in each main industrial value chain Focus on six cross-cutting priority areas: advanced manufacturing, KETs, bio-based products, clean vehicles and vessels, sustainable construction and raw materials, smart grids and digital infrastructure Financing through H2020 (esp. industrial leadership and societal challenges pillars) and COSME Smart Specialisation Platforms for regions to encourage ESIF investment into industrial modernisation European industrial projects (e.g. Galileo, Copernicus, ITER, SESAR) to pool investments and create new markets
Six priorities cutting across all industry sectors: Advanced manufacturing technologies Key Enabling Technologies Bio-based products Clean vehicles and vessels Sustainable construction and raw materials Smart grids and digital infrastructure
Smart Specialisation Implies a forward-looking process of modernisation of the economy towards high-potential markets drawing on collaboration and the comparative advantage of regions Requires co-ordinated intervention of multiple actors: regions, firms, research community Need for a thought-out approach: - identify opportunities (bottom-up) - focus and concentrate resources - identify gaps look for collaborations - foresee regulatory/institutional needs Allows to bring together H2020 and ESIF money in same project
Industry and Smart Specialisation Priority: cross-border and cross-sector value chains Informing the business and scientific community of smart specialisation opportunities and available support Rationalising the mapping of clusters/specialisation projects and existing networks to make this information available and usable for the private sector and regions Promote matchmaking events where industry would meet regions and other relevant stakeholders active or interested in a particular sector with a view to develop collaboration opportunities. Establishing pilot projects (e.g. advanced manufacturing)
Pilot project on advanced manufacturing Objective: Business involvement and collaboration opportunities Collaboration opportunities must be discovered by firms, but they can be helped need information and matching tools Pilot project in advanced manufacturing - Map advanced manufacturing in Europe (clusters, regional specialisation initiatives, centers of excellence) - Information on available networks and financing programs (setting up an information platform) - Missions for Growth to bring together different actors - Assistance with the follow-up and "structuring" This work has started in collaboration with some regions
Pilot project in the Baltic Sea area?
Industrial projects: GNSS - 7 billion EGNOS Improves the performance of the US GPS over Europe 3 services already active since 2009, 2011 and 2012 respectively Significant benefits for aviation sector It s there, use it Galileo Autonomous infrastructure, designed for civilian purposes and conceived to allow interoperability with other systems Worldwide coverage and better robustness than existing systems 30 satellites in medium Earth orbit (ca. 23.000 km) 5 services: open, commercial, Public Regulated Service (governmental users), Search and Rescue, Integrity Monitoring Strengthens European technology and has huge economic potential for downstream sectors (applications, receivers) and economy in general (e. g. transport efficiency)
Galileo Initial Operational Capability Initial Services Full Operational Capability Full services, 30 satellites Validation en orbite 4 satellites and corresponding ground segment operational 2013 2014/2015 GIOVE A/B 2 satellites tests 2005/2008 Galileo System Testbed v1 Validation of algorithms 2003
Industrial projects: Copernicus - 4.3 bn Protect people and assets Increase general knowledge on the state of the Planet Monitor the environment Improve environmental policy effectiveness Foster downstream applications in a number of fields Facilitate adaptation to climate change Help managing emergency and security related situations
The observation data is gathered through a combination of: Earth Own EU space infrastructure (the Sentinel satellites, 1 st launch planned April 2014) Contributing missions (other satellites) In-situ infrastructures (e.g. buoys at sea) monitoring Land Monitoring Marine Environment Monitoring Atmosphere Monitoring Transversal services Emergency Management Security Climate Change
COSME Programme: 2.3 billion Specific Objectives (and budget share): 1) Improving access to finance (min 60%) 2) Improving access to markets (+/- 21,5%) 3) Improving framework conditions (+/- 11,5%) 4) Promoting entrepreneurship and entrepreneurial culture (+/- 2,5%)
COSME: Improving access to finance Aims: streamlining set of financial instruments, developing EU-wide venture capital market, supporting cross-border lending, improving information about EU finance available for SMEs An equity facility (to invest in SMEs in expansion phase) A loan facility (to provide guarantees to cover loans for SMEs) Analytical tools (e.g. Enterprise Finance Index) Exchange of good practice (e.g. SME Finance Forum) 16
COSME: Improving access to finance Operates through financial intermediaries and seeks to achieve a strong multiplier effect Predecessor programme CIP Financial Instruments had a budget of 1.1. billion and mobilised 14 billion EUR of loans for SMEs 2.3 billion EUR of venture capital for SMEs More than 240,000 SMEs have been helped to access loans Positive job creation effect (around 6% according to the latest Employment Survey) despite the effects of the financial crisis 17
COSME: Improving access to markets Aims: One-stop-shop for SMEs, disseminating widely information on opportunities, providing SMEs information on how to expand outside EU, mapping and filling gaps in support services, training programmes for SME managers Enterprise Europe Network Mission for Growth Analytical tools (studies on mapping of EU business support abroad) On-line portals (e.g. Your Europe Business portal, new portal on access to markets outside EU, China IPR helpdesk) Trainings Exchange of best practices, workshops (e.g. optimising EU portfolio of business support for SMEs) 18
COSME: Improving framework conditions Aims: Reducing administrative burden, supporting smart regulation (SBA/SME test, competitiveness proofing, fitness checks), strengthening coordination of MS industrial policies, accelerating the emergence of competitive industries, stimulating the development of new markets and competitive business models. Examples: Support to Clusters Finacning sectorial policies: eg. tourism, KETs, digitaleconomy, construction. 19