The European Union’s Industrial Policy

Summary: On the re-launch of the Lisbon Strategy the European Commission has made the industrial policy one of its priorities. By this it would like to quell concerns over the position of European industry with regard to international competition, notably in terms of the gap that has grown with the USA in the areas of productivity and capacity to innovate as well as with regard to competition from emerging countries. A set of proposals designed to improve the competitiveness of European industry and to encourage innovation were therefore put forward in various documents presented by the Commission during 2005: the Competitiveness and Innovation Framework Programme, the communication on the manufacturing industry, the communication relative to the implementation of the Community Lisbon Programme for research and innovation and the 7th Framework Programme for Research. The main objectives involve the protection of intellectual property, the improvement of Community regulations with regard to industry, enhancing the role of SMEs in innovation, the development of cross-national co-operation projects and the support of structural adjustments. The effectiveness of this new industrial policy supposes the support and diligence of the Council particularly on the question of the Community Patent. It is therefore necessary not to disperse the limited budgetary means that have been granted within the agreement on the Community budget for the period 2007-2013. To ensure the clarity of these supportive measures to innovative SMEs the Commission might also look into formulating a European Small Business Act.