VARIO advisory report 34: Towards an ambitious European industrial policy

On December 20, 2023, VARIO received a request for advice from Flemish Minister of Economy and Innovation Jo Brouns on the concept note ‘Towards an ambitious European Industrial policy’, communicated to the Flemish Government on December 15 2023: ‘This concept note sets out some strategic guidelines for a forward-looking and proactive European industrial policy. It provides a guideline for Flanders during the Belgian presidency of the Council of European Ministers and serves as input for policy debates and recommendations around future European industrial policy’.

VARIO largely agrees with this concept note, which is very much in line with previous VARIO recommendations. For instance, VARIO endorses the importance of the link between research, innovation and industrial policy, setting strategic priorities, demonstration and scaling up, valorization, excellence, access of SMEs to the market and to funding and the importance of solid foundations including human capital. VARIO provides a number of recommendations which will add value to the discussions in the context of the Belgian Presidency of the Council of European Ministers and policy debates on future European industrial policy.

• Recommendation 1: Highlight the importance of boosting productivity growth more strongly, taking into account the different dimensions
• Recommendation 2: Link not only innovation policy but also entrepreneurship policy to industrial policy and put technology and industry neutrality first
• Recommendation 3: Ensure a good policy mix also in the European innovation pipeline
• Recommendation 4: Attract more innovation talent and international STEM talent
• Recommendation 5: Adopt a holistic approach to transitions and SDGs when building the industry – and by extension the sustainable economy - of the future
• Recommendation 6: VARIO supports the case for deepening a unified capital market to foster entrepreneurship