Industrial and Innovation Policy as Drivers of Change. WWWforEurope Deliverable No. 9

The Europe 2020 Strategy clearly outlines the ambition for EU member countries to pursue a smart, sustainable and inclusive growth: this means designing a the strategy that aims at achieving a socio-ecological transition by fostering economic growth as well as social development (e.g., with respect to employment, gender or cultural aspects) whilst also pushing for Europe's green shift. To deliver the EU 2020 strategy a new definition of competitiveness needs to be considered. A new industrial policy for Europe should be delivered by means of a portfolio of instruments that simultaneously steer demand and supply sides to move in the same direction creating an additive effect as against a cancelling-out effect. Such a portfolio needs to avoid trade-offs between technological change and growth or employment priorities. Policy changes need to provide long-run and consistent signals, which provide certainty for businesses in making long-term investments and short-term adjustments. For technological upgrading mission-oriented programmes are needed, compatible with existing capabilities but enabling capabilities to be diversified. Universities, investment in intangible assets, new technologies and key enabling technologies, and entrepreneurship will be crucial to secure Europe on a growth path compatible with a beyond GDP competitive agenda.