Remaking Europe: the new manufacturing as an engine for growth
Europe needs to know how it can realise the potential for industrial rejuvenation. How well are European firms responding to the new opportunities for
- Publishing date
- 07 September 2017
Manufacturing once provided Europe with many jobs that did not require high skills. The idea that such jobs can be revived is a central issue for many politicians and is behind the demand that products should be ‘made in’ the countries that consume them. But such rhetoric has as its reference point an old version of manufacturing, which has been supplanted by complex value chains and is highly automated and data driven. This new version of manufacturing also needs attention from politicians, but for different reasons than the provision of millions of old-style production-line jobs.
The policy discussion on the future of manufacturing requires an understanding of the changing role of manufacturing in Europe’s growth agenda. Europe needs to know how it can realise the potential for industrial rejuvenation. How well are European firms responding to the new opportunities for growth, and in which global value chains are they developing these new activities? Does Europe have the right conditions for its economies to create and capture value from the activities that contribute most strongly and sustainably to Europe’s growth and external competitiveness? This Blueprint helps to provide some of the answers. The evidence in this volume shows that the challenge for European policymakers is how to promote and attract those high-value added activities within global chains that are the basis for sustainable growth and competitiveness. Such activities are not necessarily production related, but will increasingly have service-like characteristics and do not necessarily require all the activities of the whole value chain to be located at home.
Below, an extract from the Blueprint, the opening chapter of the book by Reinhilde Veugelers, illustrating how the European economy could take advantage of new technological opportunities.
About the authors
Dalia Marin joined Bruegel as a research fellow in October 2007. She holds the Chair in International Economics at the University of Munich.
Her research interests are in the area of international economics, corporate finance and the organisation of the firm, and emerging market economies.
Since obtaining her Habilitation in Economics from Vienna University of Economics she has been an Assistant Professor at the Institute for Advanced Studies in Vienna, Associate Professor at Humboldt University Berlin, and a visiting professor or visiting scholar at Harvard University, Stanford University, Stern School of Business, New York University, the International Monetary Fund, National Bureau of Economic Research in Massachusetts, the European University Institute, and at the Wissenschaftszentrum in Berlin.
Dalia Marin is also a fellow of the Centre for Economic Policy Research (CEPR), London, and Member of the International Trade and Organization Working Group of the National Bureau of Economic Research (NBER) in Cambridge. She has been Team Leader at the Russian European Center for Economic Policy in Moscow and has acted as a consultant for international organizations such as the European Bank for Reconstruction and Development, and the International Monetary Fund.
Prof Dr. Reinhilde Veugelers is a full professor at KULeuven (BE) at the Department of Management, Strategy and Innovation. She is a Senior Fellow at Bruegel since 2009. She is also a CEPR Research Fellow, a member of the Royal Flemish Academy of Belgium for Sciences and of the Academia Europeana. From 2004-2008, she was on academic leave, as advisor at the European Commission (BEPA Bureau of European Policy Analysis). She served on the ERC Scientific Council from 2012-2018 and on the RISE Expert Group advising the commissioner for Research. She is a member of VARIO, the expert group advising the Flemish minister for Innovation. She is currently a member of the Board of Reviewing Editors of the journal Science and a co-PI on the Science of Science Funding Initiative at NBER.
With her research concentrated in the fields of industrial organisation, international economics and strategy, innovation and science, she has authored numerous well cited publications in leading international journals. Specific recent topics include novelty in technology development, international technology transfers through MNEs, global innovation value chains, young innovative companies, innovation for climate change, industry science links and their impact on firm’s innovative productivity, evaluation of research & innovation policy, explaining scientific productivity, researchers’ international mobility, novel scientific research.
Carlo Altomonte is Professor of Economics of European Integration at the Social and Political Sciences Department of Bocconi University, and a core faculty member of SDA Bocconi School of Management, where he teaches International Business Environment. He has received the SDA Bocconi Teaching Excellence Award in 2007 and the Bocconi Teaching Innovation Award in 2016. He has been a founder, and the first Director, of the World Bachelor in Business, a unique undergraduate triple degree in Business jointly developed by Bocconi University, the University of Southern California and the Hong Kong University of Science and Technology.
He is currently the Director of the Globalization and Industry Dynamics unit at the Baffi-Carefin centre of research of Bocconi University, a Non Resident Fellow at Bruegel, a EU think tank, and a Senior Researcher at ISPI, the Italian centre of Studies on International Politics. He has been visiting scholar at the Centre of Economic Performance of the London School of Economics and at the Research Department of the European Central Bank. He has been a visiting professor at the Paris School of Economics (Panthèon-Sorbonne, Paris, France) and KU Leuven (Belgium), and has held short teaching courses at the Wagner School of Government (NYU, New York), Keio University (Tokyo), Fudan University and CEIBS (Shanghai) among others.
He has been regularly acting as consultant for a number of national and international institutions, including the Italian Government, the United Nations (UNCTAD), the European Parliament, the European Commission and the European Central Bank, analysing the role of international trade and investment and their implication for competitiveness.
His main areas of research and publication are international trade and investment, the political economy of globalization and its implication on competitiveness. He has published in several leading academic journals, among which Journal of Industrial Economics, European Economic Review, Economic Policy, International Journal of Industrial Organization, Journal of Economic Geography, Journal of International Business Studies, Oxford Bulletin of Economics and Statistics.
Georg Zachmann is a Senior Fellow at Bruegel, where he has worked since 2009 on energy and climate policy. His work focuses on regional and distributional impacts of decarbonisation, the analysis and design of carbon, gas and electricity markets, and EU energy and climate policies. Previously, he worked at the German Ministry of Finance, the German Institute for Economic Research in Berlin, the energy think tank LARSEN in Paris, and the policy consultancy Berlin Economics.
Silvia Merler, an Italian citizen, is the Head of ESG and Policy Research at Algebris Investments.
She joined Bruegel as Affiliate Fellow at Bruegel in August 2013. Her main research interests include international macro and financial economics, central banking and EU institutions and policy making.
Before joining Bruegel, she worked as Economic Analyst in DG Economic and Financial Affairs of the European Commission (ECFIN). There she focused on macro-financial stability as well as financial assistance and stability mechanisms, in particular on the European Stability Mechanism (ESM), providing supportive analysis for the policy negotiations.
Simone Tagliapietra is a Senior fellow at Bruegel. He is also a Professor of Energy, Climate and Environmental Policy at the Catholic University of Milan and at The Johns Hopkins University - School of Advanced International Studies (SAIS) Europe.
His research focuses on the European Union climate and energy policy and on the political economy of global decarbonisation. With a record of numerous policy and scientific publications, also in leading journals such as Nature and Science, he is the author of Global Energy Fundamentals (Cambridge University Press, 2020).
His columns and policy work are published and cited in leading international media such as the BBC, CNN, Financial Times, The New York Times, The Economist, The Guardian, The Wall Street Journal, Le Monde, Die Zeit, Corriere della Sera, and others.
Simone also is a Member of the Board of Directors of the Clean Air Task Force (CATF). He holds a PhD in Institutions and Policies from Università Cattolica del Sacro Cuore. Born in the Dolomites in 1988, he speaks Italian, English and French.
J. Scott Marcus
J. Scott Marcus is a Senior Fellow at Bruegel, a Brussels-based economics think tank, and also works as an independent consultant dealing with policy and regulatory policy regarding electronic communications. His work is interdisciplinary and entails economics, political science / public administration, policy analysis, and engineering.
From 2005 to 2015, he served as a Director for WIK-Consult GmbH (the consulting arm of the WIK, a German research institute in regulatory economics for network industries). From 2001 to 2005, he served as Senior Advisor for Internet Technology for the United States Federal Communications Commission (FCC), as a peer to the Chief Economist and Chief Technologist. In 2004, the FCC seconded Mr. Marcus to the European Commission (to what was then DG INFSO) under a grant from the German Marshall Fund of the United States. Prior to working for the FCC, he was the Chief Technology Officer (CTO) of Genuity, Inc. (GTE Internetworking), one of the world's largest backbone internet service providers.
Mr. Marcus is a member of the Scientific Committee of the Communications and Media program at the Florence School of Regulation (FSR), a unit of the European University Institute (EUI). He is also a Fellow of GLOCOM (the Center for Global Communications, a research institute of the International University of Japan). He is a Senior Member of the IEEE; has served as co-editor for public policy and regulation for IEEE Communications Magazine; served on the Meetings and Conference Board of the IEEE Communications Society from 2001 through 2005; and was Vice Chair and then Acting Chair of IEEE CNOM. He served on the board of the American Registry of Internet Numbers (ARIN) from 2000 to 2002.
Marcus is the author of numerous papers, a book on data network design. He either led or served as first author for numerous studies for the European Parliament, the European Commission, and national governments and regulatory authorities around the world.
Marcus holds a B.A. in Political Science (Public Administration) from the City College of New York (CCNY), and an M.S. from the School of Engineering, Columbia University.
Uuriintuya Batsaikhan, a Mongolian citizen, has worked as an Affiliate Fellow in the area of European and Global Macroeconomics and Governance. She has a Master’s Degree from the Central European University (CEU) in Budapest and a Master of Public Policy Degree specialising in political economy, economic institutions and monetary policy from Hertie School of Governance in Berlin. Prior to joining Bruegel, she worked at UNDP in Mongolia and the German Institute for Economic Research in Berlin.
In her Master’s thesis, she analysed access to finance of SMEs during the financial crisis using a dynamic (dis)equilibrium model of credit demand and credit supply. At CEU, she wrote on the divergent means of inflation stabilization in post-transition Poland and Estonia and assessed the role of the Currency Board Arrangement (CBA) employed in Estonia.
Uuriintuya’s research interests include macroeconomics, banking and monetary policy, access to finance of SMEs and political economy of emerging countries.
She speaks Mongolian, English, Russian and German.
Georgios Petropoulos joined Bruegel as a visiting fellow in November 2015 and was a resident fellow from April 2016 to February 2022. Since March 2022, he is a non-resident fellow. He is Research Associate at MIT, Digital Fellow at Stanford University and CESifo Network affiliate. Georgios’ research focuses on the implications of digital technologies on innovation, competition policy and labour markets. He is currently studying how digital platforms should be regulated, what the relationship between big data and market competition is, as well as how the adoption of robots and information technologies affect labour markets, employment and wages. He holds a Bachelor’s degree in Physics, Master’s degrees in mathematical economics and econometrics and a PhD degree in Economics. He has also studied Astrophysics at a Master's level.
Albert is Head of the Innovation Growth Lab at Nesta. The Innovation Growth Lab (IGL) is a global collaboration of governments, foundations and researchers that develops and tests new approaches to increase innovation, support high-growth entrepreneurship, and accelerate business growth. IGL aims to make innovation and growth policy more experimental and evidence-based, in order to improve the design of the programmes and institutions that help to make our economies more innovative and entrepreneurial.
Since joining Nesta in 2007, his work has been at the intersection of innovation, growth and finance. Prior to setting up the Innovation Growth Lab, he was senior economist and led two of Nesta’s major research programmes in this area, one exploring business growth dynamics and its drivers in the UK and internationally, the other examining the contribution of intangible assets to productivity growth.
Among others, his research has also looked at the drivers of venture capital performance, the linkages between financial institutions and innovative performance, and the effectiveness of innovation policy.
Albert holds a PhD in Economics from Harvard University, a MSc in Economics from the London School of Economics, and a BA in Economics from Universitat Pompeu Fabra. He is guest professor at the Barcelona Graduate School of Economics. He has also been visiting economist at the OECD and consultant for the World Bank.
Justine Feliu is a French citizen and works at Bruegel as a Research Assistant in the area of Global and European Macroeconomics. Prior to joining Bruegel, Justine worked as a Trainee in the Money Market and Liquidity Division (Directorate General Market Operations) of the European Central Bank, and as an intern in the Structural Surveillance Division (Economics Department) of the Organisation for Economic Co-operation and Development.
She holds a Bachelor's degree in Economics, a Master's degree in Economics and a Master's degree in Public Policy and Development from Toulouse School of Economics (Université Toulouse 1 Capitole). The main purpose of her Master's internship report was to quantify the impact of structural reforms on long-term growth using a Bayesian meta-analysis.
Her research interests include macroeconomics, monetary and fiscal policies, international economics, behavorial economics and growth.
She is fluent in French and English, has good knowledge of German and basic knowledge of Russian.
Robert Kalcik works as research assistant at Bruegel in the area of Energy and Climate with a focus on innovation policy. A native Austrian, he previously worked as data analyst for an international consultancy supporting evidence-based policy making for education authorities in Australia and the Middle East. He conducted research for the Austrian National Bank, the University of Melbourne and the Sustainable Europe Research Institute.
Robert holds an MSc in Economics from the University of Vienna where his master thesis focused on international environmental agreements. His personal interest lies in machine learning applications and open data.
Filippo, an Italian citizen, works at Bruegel as a Research Assistant in the area of innovation and competition policy.
Before joining Bruegel, he worked as a Trainee and then Consultant in the Research Division of the European Central Bank, within the Competitiveness Research Network (CompNet).
Filippo holds a BSc and MSc degree in Economics and Social Sciences from Bocconi University, with an exchange program at Dartmouth College.
His master thesis focused on firms' productivity distributions. In particular, on the development of a novel statistical decomposition of aggregate productivity dynamics in order to assess the heterogeneous contributions of different groups of firms.
Filippo’s research interests include international economics and trade, firms and competitiveness, industrial and competition policy.
He is fluent in Italian and English, and has basic knowledge of French.
PhD in Economics, president of WiseEuropa. Assistant professor at University of Warsaw. In 2006-2013 President of Institute for Structural Research. Co-author of multiple Polish strategic documents, e.g. Hausner’s Plan, Poland 2030 – Development Challenges, Long-term National Development Strategy (Poland 2030 – Third wave of modernization). Project manager and author of various press commentaries and press articles regarding, among others, macroeconomics, energy policy, innovativeness, pension system and the labor market.
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