- 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 An industrial policy for the globalisation erawill be discussed at a conference to be held on 10 April 2013 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:
CDR1787-2013_00_00_TRA_TCD
- 1 -
Contributor information[2]
Name of sender: / Paolo TedeschiContact details:
(address, telephone, email) / Piazza Duomo 10, 50122 Florence, Italy
+39.055.4384820
On behalf of:
(name of local or regional authority) / The region of Tuscany
Type of organisation / City/Town/Municipality Region
County/ProvinceAssociation of local and/or regional authorities
Other (please specify)
Country: / Italy
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).
The global economic crisis which began in late 2007 exacerbated a number of the regional economy's existing problems, with effects that have so far been partially contained, but with an outlook that could be particularly concerning without signs of recovery soon: the added value of industrial production is now less than 20% of the total, the unemployment rate rose in 2012 to 7.8%, although is still lower than the national average (now around 12%); and state transfers have been reduced because of the expenditure-curbing policies adopted by the central government (between 2010 and 2012,transfers equal to 25% of the regional budget were cut).
The austerity policy route taken from late 2011 on has further worsened the situationwith an increase in the tax burden, a fall in domestic demand, and a progressive tightening of credit with adverse effects on investment in research and technology transfer. Tuscan industry thus needs to emerge from a dangerous spiral of recession and austerity by harnessing existingareas of excellence and distinguishing factors such as the quality of local human capital, as well asre-orientating companies in traditional sectors towards higher levels of innovation, productivity and internationalisation.
2)Do these challenges differ from those faced 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 structural challenges are similar, partly linked to the fragmentation of the productive fabric in small and micro-businesses, often belonging to regional industrial districts and with demand based in so-calledlocal markets (e.g. other Italian regions). The challenges posed by globalisation and then by the financial crisis require aqualitative leap in production capacity and orientation towards the emerging markets. One sector that has been hit hard is manufacturing, which has been affected by low productivity and insufficient links with the research world. In the last few years, the crisis has thus accelerated the need to respond to the challenges of Europe 2020 by repositioning industry within more advanced sectors with global growth prospects (such as the life sciences, ICT, aerospace, the marine, energy technologies, transport systems, agri-food, the fashion industry, etc.). The challenges were thus already there in 2010; now they require selective measures capable of generating a systemic impact compatible with Tuscany's traditional strong points (such as culture, tourism and agriculture).
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]).
The region of Tuscany has undertaken to implement a mix of short-term counter-cyclical measures and strategies aimed at reviving socio-economic development, fostering the competitiveness of businesses and investing in new social cohesion instruments.
The first elementof the mix includes emergency economic measures for improving SME credit access via a bank guarantee system, revolving funds for liquidityand investment, support for expansion and financial restructuring processes, as well as professional services that businesses often cannot afford (e.g. advice regarding innovation, developing new products, patents, environmental/energy/quality certification, and marketing, internationalisation, etc.). The region has also provided incentives for employment and social safety nets.
As regards the second element, the primary objective is to revive the manufacturing sector by tapping sources of major local potential such as the technical and scientific skills of the local research system (universities, national public research bodies, etc.) at a competitive cost compared to other European and non-European countries.
Investment in industrial research is not an optional extra but is the only economic-growth driver in the medium term. Tuscany thus intends to continuetooffer"bandi unici"funding programmes for applied research aimed at fostering transfer, innovation, and networks between businesses – large, medium and small – universities, and research centres and clusters. And thus secure markets for the creation of prototypes, patents, product innovation and increasing competitiveness. And also new jobs. Theprogrammelaunched in 2012 comprises three different strands: network alliances, major projects in high-tech sectors, and SME innovation. The programme covers some 100 projects involving 404 SMEs, 38 large companies and 96 research bodies, with the total investment amounting to EUR 300 million (co-funded by the EU), creating 200 new jobs in research alone. The previous programme in 2011 generated EUR 120 millionin investment on the basis of EUR 60 millionin grants, and created 100 jobs in research alone. Furthermore in 2012 Tuscany adopted a law on competitiveness which provides for a discount on local taxes for virtuous Tuscan firms, and, above all, streamlines the procedures and cuts the red tape involved for all businesses seeking access to regional funding.
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:
- "competitiveness proofing" i.e. analysis of the impact on competitiveness of all policy proposals;
- "fitness checks" of existing legislation aimed at reducing the cumulative effects of legislation in order to cut costs for businesses in Europe;
- making it easier for SMEs to access credit and facilitating their internationalisation;
- a strategy to strengthen European standardisation;
- more efficient European transport, energy and communication infrastructure and services to serve European industry;
- a new strategy on raw materials creating the right framework conditions for sustainable supply and management of domestic primary raw materials;
- 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;
- actions to improve framework conditions and support innovation in energy-intensive industries;
- a space industrial policy creating a solid industrial base and covering the whole supply chain;
- reporting on Europe’s and Member States' competitiveness, industrial policies and performance on an annual basis.
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.
The region of Tuscany is already framing its own approach to structural fund programming for 2014-20 in that EU resources are set to be a crucial driver for public-private investment in the next few years and thus for reviving regional and national competitiveness. Thanks to EU Structural Funds in the period 2007-2013,Tuscany has, for example, notched up significant results such as the project promoting the independence of young peopleGiovanisì ( which received funding of EUR 350 million and has already involved 50 000 young people in only two years: 3500 on paid traineeships involving2440 companies (with 40% hired post-traineeship), contributions towards rent (over 1 000 applications received and over 1 000 applications pending), the regional civil service (2000 young peoplegiven an opportunity to gain experience hereout of over 5500 applications that will gradually be met), incentivesfor start-up companies (over 1000 applications for EUR 71 million of funding, of which 713 have already been funded; 635 applications forstarting up a business in farming, of which 400 are up and running).
Furthermore, major infrastructural works have also been funded (e.g. thetramviatram system in Florence, the People Moverconnecting Pisa's airport and train station), as have the restoration and recovery of numerous culturalassets (e.g. museum networks, the via francigena), advanced interactive tourism services in the cities of art (e.g. VISITO Tuscany,a free download for smartphones and tablets), not to mention the numerous research projects supported by the 7th EU framework programmeand other specific programmes (such as Manunet, Biofotonica, etc.) in many cases involving universities and vocational schools based in Tuscany.
Europe 2020 has also highlighted the strategies that need to be pursued to attain economic growth: investment in education, research and innovation; focusing on environmental, territorial and energy conditions, combating poverty and increasing employment. These are the very cornerstones of Tuscany's regional strategic framework for 2014-2020.
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?
The pillars listed are all important and almost all six priority areas form part of Tuscany's smart specialisation strategy. Of particular importance are investment in innovation, because this is the only way to revive Tuscan industry and make it competitive in external markets; and access to finance and capital, because companies, particularly small ones, are paying for the shortage of credit and are thus unable to invest, which has negative repercussions, in the long run, for the whole production system. Finally, human capital: Tuscany needs to giver greater importance to locally trained people, which are the real driver of growth, and prevent excessive emigration of skilled workers.
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.
As mentioned previously, the commitments made by the Italian Government in 2011 at EU level will precludemeeting some of the Europe 2020 targetssuch as, for instance, attaining a level of investment in research and innovation amounting to 3% of GDP. The region, however, intends to reach the level of at least 2% of GDP in investment in research (as against the current 1.22%) thus closing the gap with Europe's other innovative regions, due mainly to a lack of investment by the private sector.
Tuscany's employment rate in the 20-64 age group currently stands at 69%, seven percentage points higher than the Italian average. This situation masks, however, a clear imbalance: in Tuscany, male employment has already reached the EU target of 75%, while female employment is only 58%. The downturn of the last two years has weighed especially on the younger members of society, as is clear from the rate of youth unemployment at 23%, up by about 9 percentage points. Also worsening during the crisis years is the level of long-term unemployment,which in 2010 amounted to almost half of the total unemployed. The reform of the pension system, which has prolonged the working age, has reduced the scope for natural generational replacement in the workplace, so achieving the Europe 2020 employment goal will not be easy.
Tuscany is, however, determined to achieve the 20-20-20 environmental and energy targets: the new regional environmental and energy plan, currently in the pipeline, will include the additional target, also for 2020, of reaching a level of 50% of electricity generated from renewables (especially geothermal, solar, hydroelectric).
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 Italian Government has partially overhauled its approach to the Structural Funds, adopting common action plans for the convergence regions in southern Italy, in respect of which the competitiveness regions in the centre-north can harness points of interest(such as networks of cities, internal areas, etc.) and also theneed to call for specific measures on infrastructure and the socio-economic system. Tuscany has always demonstrated a good capacity for using and spending EU resources inter alia for protecting the environment, developing human capital and social inclusion. The region is also committed to ensuring broadband coverage for 100% of the population in 2013, and ultra-broadband for 50% of households by 2020).
8)Which measures in the field of industrial competitiveness policy could be more helpful in the short term?
In the short term, we consider it crucial to improve access to credit so as to get businesses investing again, provide professional services to SMEs to give them a competitive cutting edge in the marketand finally establish a system to streamline bureaucratic procedures to facilitate business start-ups (we are thinking here in particular of young entrepreneurs and women).
Managing and funding issues