Although industrial policy has not always played a leading role, it has always been an important component of German and European economic policy. Today it is at the core of policy debates as in March 2020, the European Commission will adopt an EU industrial strategy
Von:Daniela Arregui Cola und Markus Overdiek, Bertelsmann Stiftung
The last two posts in our series “The Future of European and German Industrial Policy” focussed on the industrial policy stance of the US and China, including a discussion of their strengths and weaknesses in respect to innovation facilitation. In this post, we will have a look at the European and German approaches.
The industrial sector plays an essential role in the European Single Market. It produces about 80 percent of EU exports and provides over 30 million jobs. In Germany, it has even more weight. The manufacturing industry provides around 6.3 million jobs, a turnover of almost 1,900 billion euros, and thus 27.6 percent of Germany’s gross value added. With a share of 86 percent, it is also the core of Germany’s export strength. Given this importance, what stance do the EU and Germany have towards industrial policy, and which factors challenge European and German innovation capacity?