- 1 -

EU local and regional authorities contribute to the

mid-term review of Europe 2020

Assessment of the flagship initiative

An industrial policy for the globalisation era

Almost three years after the launch of Europe 2020, the Committee of the Regions has launched a broad assessment of the Strategy in preparation for its mid-term review, expected in 2014.

As part of this assessment, the replies to this questionnaire on the state of play of the flagship initiative Anindustrial policy for the globalisation erawill be discussed at a conference to be held on 10 April2013 in Brussels.

This conference will be the third in a series of CoR events and monitoring initiatives on the Europe 2020 flagship initiatives, preparing the mid-term review in 2014. More news on this conference can be found on the CoR website[1].By participating in this survey, you will:

  • ensure that your views are taken into account in the debate held during the conference;
  • contribute to the CoR's consultative activity over the coming months, to include an opinion drafted by Claude Gewerc, President of Picardy Regional Council (PES/FR), scheduled for adoption at the CoR plenary session on 10-11 April 2013;
  • contribute to the fourth CoR Monitoring Report on Europe 2020, to be published in October 2013;
  • contribute to the mid-term review of Europe 2020 in 2014.

If you wish to participate in this survey, please complete this questionnaire in any eu language, using the spaces provided, and return it in text format to:

by 1 March 2013

The questionnaire will be available in all languages in mid January

For more information on this survey and for details on how to join the Europe 2020 Monitoring Platform, go to:

CDR1754-2013_00_00_TRA_TCD

- 1 -

Contributor information[2]

Name of sender: / Agnieszka Rypińska
Contact details:
(address, telephone, email) / Ul. Jagiellońska 26, 03-719 Warszawa
tel. (+48 22) 5979-100
fax (+48 22) 5979-290
e-mail:
On behalf of:
(name of local or regional authority) / Marshal's Office of the Mazowsze Region, Warsaw, Poland
Type of organisation / City/Town/Municipality Region
County/ProvinceAssociation of local and/or regional authorities
Other (please specify)
Country: / Poland
Member of the EUROPE 2020 Monitoring Platform: / Yes No

Current policy challenges and responses at regional and local level

1)What are the main challenges faced by industry in your region/city?
Please answer with respect to competitiveness (market trends; positioning in the market; competitors) and employment (finding the necessary workforce with the right skills; ability to create new jobs).
Industry and manufacturing are a priority objective for the region’s socio-economic development. Accordingly, emphasis should be placed on making the best use of Mazowsze’s opportunities – namely, its potential in terms of the development of science and education as well as medium and hi-tech industries.
Compared with the services sector, the industrial sector in Mazowsze plays a smaller role in generating added value and is characterised by a lower level of innovation. To increase local industry’s competitive edge, there is a vital need for action to foster structural changes and spur innovative activity e.g. by creating favourable conditions for investors and businesses and by ensuring appropriate conditions for the generation and the uptake of innovation.
In spite of the fact that the Mazowsze region is ranked first in the country in terms of the volume of sales from industrial manufacturing, the region's economy is not specialised in any particulararea. In view of the above, it is vital to pinpoint areas in which the regional economy can specialise and to identify courses of action to ensure their development. Particular attention should be paid to specialised production in sectors such as bio-technology, bio-medicine, nanotechnology as well as the IT and space industry in the Warsaw region and the specialised production in food processing at local level across the region.
Table 1 – Volume of sales from industrial production in Poland (PL) and in Mazowsze (MAZ) at constant prices

Another challenge facing the Mazowieckie region is the issue of how to make the best use of its human and social capital – in terms of both quantity and quality – in order to develop a modern industrial sector. In this connection, it is vital to tailor the profiles and methods of training to the needs of the businesses and R&D institutes active in the field of industry and manufacturing, to adapt workers to the needs of the market and to foster the creation of new jobs in industry.
2)Do these challenges differ from thosefaced in 2010 (when the Europe 2020 strategy was launched)? If so, in what respect?
Please make a distinction between structural problems and problems resulting from the impact of the economic and financial crisis.
The challenges set out in point 1 have been significantly affected by the impact of the economic and financial crisis. Attention should be drawn to the changes made by most of the region’s industrial companies, not to mention public institutions and households, in their planned expenditure and investments. There has been a substantial reduction in funding for investment projects, which has led to more difficult access to various sources of financing and to an increasing unwillingness on the part of companies to take risks in the form of on-going and/or new investment projects. The outcome of all of this is that companies from the industrial sector are less active while their innovative capacity has been restricted.
Table 2 – Share of investment in GDP in Mazowsze and Poland

3)How are your regional/local policies addressing these challenges?
Please make clear whether you are (i) working on the basis of a local/regional industrial strategy; (ii) providing direct support to firms and networks/clusters; (iii) encouraging stronger relationships between firms, universities, public and private research institutions; (iv) improving the business environment, including through administrative simplification; (v) undertaking a proactive industrial policy, focusing on certain activities or sectors; or a mix of these actions.
Please provide examples (or at least web references[3]).
i)The measures taken by the Mazowsze region to support industry are based on the Mazowsze Regional Development Strategy and on the Regional Innovation Strategy, which outline the principal courses of action for development policy, including measures to boost the region’s innovation potential. The relevant documentation is currently being updated to identify the sectors and areas of the economy that are vital for the development of industry and innovation.
ii)Direct support to firms, networks and clusters is primarily provided under the EU’s structural funds. The measures taken under Priority I of the 2007-2013 Mazowsze Regional Operational Programme – Creating conditions for the development of innovation potential andentrepreneurship in Mazowsze,which seek to create the conditions needed to develop innovative potential and to support the development of entrepreneurship, are of key importance in this respect. Co-financed projects impact, on others, on the development of networks of business contacts and business association networks and can help improve the competitiveness of companies by adapting them to the requirements of the market and the sector and by increasing companies' access to external capital. In addition, Priority VIII of the 2007-2013 Human Capital Operational Programme–Regional Human Resources for the Economy – also provides a source of support involving projects to improve and adapt the skills and qualifications of workers to the specific needs of industry.
iii)Action promoting cooperationamong firms, universities, public and private research institutions is implemented under both the structural funds and within the framework ofthe local government'sresponsibilities in the area of entrepreneurship and internationalisation. The project entitled the Mazowsze network of advice and information centres on innovation (MSODI), which is jointly funded by the EU (EFS) allows companies and R&D institutions to improve their knowledge of and raise awareness aboutsuch cooperation and to popularise innovation. MSODI’s action also includes initiatives to facilitate contacts between the R&D sector and industry i.e. science and cooperation fairs, partner-matching forums or a search engine for innovative projects. In addition, the local government is very active in areas such ascooperation with other EU regions (in particular Germany’s eastern lander) and is involved in sharing experiences and exchanging best practices, joint ventures, including in relation to cluster policy.
iv)In Poland, the task of improving the business environment, including through administrative simplification, primarily falls under the remit of national institutions i.e. central government administration. This principle is borne out by the fact that Objective 11 of the Common Strategic Framework – Enhancing institutional capacity and ensuring an efficient public administration –is implemented at national level. However, local government, in its capacity as the Managing Authority of the Regional Operational Programme initiates all measures to simplify administrative procedures for their implementation and operation to make it easier for companies and other economic players to access support.
v)The local government implements a pro-active policy in this area through its implementation of the Regional Development Strategy and the Regional Innovation Strategy. In view of the challenges facing the region, a number of measures have been adopted to update the relevant documents. This process will allow support to be focused based on the natural potential of the Mazowsze region. Opting for so-called smart specialisation will enable the more effective use of public aid and provide opportunities to identify niche areas, which could act as drivers of regional growth.
BOX 1 – An Industrial Policy for the Globalisation Era
The Europe 2020 flagship initiative An integrated industrial policy for the globalisation era, adopted by the European Commission on 28 October 2010, sets out a strategy that aims to boost growth and jobs by maintaining and supporting a strong, diversified and competitive industrial base in Europe, offering well-paid jobs while becoming more resource-efficient[4]. The flagship initiative highlights ten key actions for European industrial competitiveness:
  1. "competitiveness proofing" i.e. analysis of the impact on competitiveness of all policy proposals;
  2. "fitness checks" of existing legislation aimed at reducing the cumulative effects of legislation in order to cut costs for businesses in Europe;
  3. making it easier for SMEs to access credit and facilitating their internationalisation;
  4. a strategy to strengthen European standardisation;
  5. more efficient European transport, energy and communication infrastructure and services to serve European industry;
  6. a new strategy on raw materials creating the right framework conditions for sustainable supply and management of domestic primary raw materials;
  7. addressing sector-specific innovation performance with specific actions, in such areas as advanced manufacturing technologies, construction, bio-fuels and road and rail transport, particularly with a view to improving resource efficiency;
  8. actions to improve framework conditions and support innovation in energy-intensive industries;
  9. a space industrial policy creating a solid industrial base and covering the whole supply chain;
  10. reporting on Europe’s and Member States' competitiveness, industrial policies and performance on an annual basis.
These actions are implemented through more than 70 measures, whose state of play can be found on DG Enterprise and Industry's website[5].
You can find more information on An industrial policy for the globalisation era,seen from the point of view of local and regional authorities, in the Committee of the Regions' publication Delivering on the Europe 2020 Strategy. Handbook for Local and Regional Authorities[6]. General information on Europe 2020 can be found on the strategy's official website[7].

How is the Europe 2020 flagship initiative An industrial Policy for the Globalisation Era relevant to your city or region?

4)With respect to industrial policy, how would you evaluate the support your city/region has received from EU policies so far? Was it sufficient in view of the challenges you are facing in this area? As concerns EU-financed investments, in which area has more added value been created (e.g. infrastructure, skills, innovation, etc.)?
Please answer with reference to the various existing strands of EU policy (Europe 2020 flagship initiative "An industrial policy in the globalisation era", Structural Funds, 7th Framework Programme, Competitiveness and Innovation Programme, etc.).
Please comment both on the policy tools used and on funding.
Supported provided under EU policies has had a positive impact on industrial development in the region. It is particularly worth highlighting the implementation of the 2007-2013 Mazowsze Regional Operational Programme (under the Structural Funds) andmeasures such as: 1.3 Preparation of sites for business activities 1.5 Development of entrepreneurship and 1.8 Support for businesses on the implementation of BAT. The following measures made an important contribution in the area of innovation: Action 1.2 Development ofeducation-business cooperation networks and Action 1.6 Supporting cooperation ties with a regional dimension.

In addition, human capital has been strengthened through the Human Capital operational programme, priority VIII Regional Human Resources for the Economy and priority VI Labour Market Open for All. The assistance which has been allocated to entrepreneurs is of key importance for the value chain, whose diverse and competitive nature provides a foundation for the manufacturing industry.
In the case of the remaining instruments, support is not directly monitored by the regional government; however, businesses from the Mazowsze region make up the lion's share of Poland's projects which obtained subsidies under the Seventh Framework Programme (as at September 2011 – 496 projects, the next region in terms of the number of projects is Małopolskie, with 143 projects), which highlights both the potential and the needs of the region in terms of supporting innovativeness.
It is also necessary to stress the importance of parallel infrastructure support as well as action in the area of innovativeness. Given the diversity of the region's economy, there is a need to firstly ensure – for certain types of businesses – support for core infrastructure and the rollout of new solutions at company level without which further development cannot be possible and, secondly – in the case of businesses in the high-tech or medium technology sector – support in the area of innovativeness. Only a combination of these two forms of support can have a permanent and significant effect on the efficiency and effectiveness of supportwithin the framework of industrial policy.
5)The Europe 2020 flagship initiative An integrated industrial policy for the globalisation era[8] (see Box 1 above),as reviewed by the Commission Communication A stronger European industry for growth and economic recovery[9]of 10 October 2012,sets out a "renewed industrial policy" based on the four pillars presented in Box 2 below.
Which of these pillars are more relevant to your specific local/regional situation?
All four pillars are an essential part of the region's industrial policy. Given its diverse social and economic potential, an approach based on the above pillars is the most relevant for the Mazowsze region. It is particularly worth highlighting the mutual dependence that exists between all the identified pillars. Innovations are based on human capital and on sources of funding. Accordingly, investments in innovations may be defined as deriving from these two pillars. Meanwhile, improving the quality of human capital (in particular social capital) is a long-term process and provides a certain context for investment and finance activity.
BOX 2 - An industrial policy for the globalisation era: 2012 update
The flagship initiative on industrial policy, as reviewed by the Communication of 10 October 2012, places more emphasis on short-term, growth-enhancing measures resulting from the economic crisis and its impact on EU industry. The flagship initiative is based on an extensive consultation of stakeholders carried out in the first half of 2012, which highlighted the impact of the crisis in terms of job losses, the decline of industrial production and very low business confidence. Those short-term problems go hand in hand with EU industry's structural competitiveness problems. The European Commission's response is based on these four “pillars of the reinforced industrial policy”, to be addressed through partnership involving the EU, its Member States and industry:
Investments ininnovation, with a focus on six priority areas with great potential (advanced manufacturing technologies for clean production; key enabling technologies; bio-based products; sustainable industrial and construction policy and raw materials; clean vehicles and vessels; smart grids).
Better market conditions, both in the internal market, with special reference to goods, entrepreneurship and the protection of intellectual property rights, and in international markets.
Access to finance and capitals, through better mobilising and targeting of public resources, including from the EIB, and by unlocking private funds.
Human capital and skills, to promote job creation and better anticipation of, and investments in, the skills needed to promote industry's competitiveness[10].

Are your country's policies relevant to your city or region?

6)To help meet these objectives, your country has set its own targets, which you can find at Are your country's targets appropriate to your local (regional) situation?
Please explain, bearing in mind that "An industrial policy for the globalisation era" can potentially contribute to at least the following Europe 2020 targets:
in a quite direct manner: 75% of the 20-64 year-olds to be employed; 3% of the EU's GDP to be invested in research and innovation (public and private investment);
- in an indirect manner: 20% less greenhouse gas emissions than in 1990; 20% of energy from renewables; 20% increase in energy efficiency.
In accordance with the Europe 2020 targets outlined for Poland, the country is expected to achieve an employment rate of 71% while the percentage of the country's GDP to be invested in research and innovation has been set at 1.7%. The Mazowsze region has invested its 1.35% of GDP in research and innovation (Polish Statistics Office figures for 2010) while its employment rate is 65.4% (2011 figures) and is significantly ahead of the country's other regions in this respect. The results of the Mazowsze region have undoubtedly helped to improve the overall national rate. However, achieving these targets is still dependent on many factors such as the appropriate use of support instruments or the impact of the national and global economic situation.
The Mazowsze region is a long way off meeting the national targets for renewableenergy. Approximately one percent of the region's energy is derived from renewable sources of energy; the national rate is 9% while the national target should ultimately be 15.48%. According to a report from the Ministry of the Economy, it should be possible to achieve the target of 15.48% energy from renewable sources in the 2020 final energy structure subject to greater development in the use of all types of renewable sources of energy.
The rollout of modern, low-emission energy generation technologies will play a key role in reducing CO2 emissions in Mazowsze along with measures to harness the region's potential for improving its energy efficiency. It is anticipated that CO2 emissions will gradually decrease from a level of approximately 330.6 million tons in 2006 to 294.826 million tons in 2020.
Poland has made significant strides over the past ten years in the area of energy efficiency. The energy intensity of the country's GDP fell by almost one third due to thermo-modernising action carried out on the basis of the Act on the promotion of thermo-modernising measures, improved street lighting as well as more efficient industrial processes. However, the energy efficiency of the Polish economy is still around three times below the rate of the EU's most developed countries and approximately half of the EU's average rate.
7)Do you think that the industrial competitiveness policies set in your country's current (2012) National Reform Programme[11]meet the needs of your city or region?
If not, how would you change your National Reform Programme next year?
The industrial competitiveness policies set out in Poland's National Reform Programme are sufficiently tailored to the region's needs.
8)Which measures in the field of industrial competitiveness policycould be more helpful in the short term?
In the short-term, flexible measures could bevital for helping to improve industrial competitiveness. The pace and scope of changes in the socio-economic arena means that companies need to be able to quickly adapt to the new economic conditions. Accordingly, there is a need to introduce appropriate coordination mechanisms and to review the areas of support. In view of the above, the Mazowsze region has a very flexible approach towards the creation and development of the region's smart specialisation. The introduction of appropriate review mechanisms means it is possible to respond quickly to the new socio-economic needs of Mazowsze and its inhabitants.

Managing and funding issues