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Blueprint

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 growth, and in which global value chains are they developing these new activities? The policy discussion on the future of manufacturing requires an understanding of the changing role of manufacturing in Europe’s growth agenda.

By: , , , , , , , , , , , , , , and Date: September 7, 2017 Topic: Innovation & Competition Policy

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.

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Parliamentary Testimony

European Parliament

Brexit and industry & space policy

Testimony before the European Parliament's Committee on Industry, Research and Energy (ITRE).

By: Reinhilde Veugelers Topic: European Parliament, Innovation & Competition Policy, Testimonies Date: September 25, 2018
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External Publication

The impact of artificial intelligence on employment

Technological development, and in particular digitalisation, has major implications for labour markets. Assessing its impact will be crucial for developing policies that promote efficient labour markets for the benefit of workers, employers and societies as a whole.

By: Georgios Petropoulos Topic: Innovation & Competition Policy Date: July 31, 2018
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Blog Post

Italy's "Dignity Decree"

The new Italian government pushed through its first legislative act including elements of labour market reform. Presented as an overturn of the previous government’s “Jobs Act”, the estimated effects of the decree are controversial. We review Italian economists’ view on the matter.

By: Silvia Merler Topic: European Macroeconomics & Governance Date: July 23, 2018
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Blog Post

Robots, ICT and EU employment

Disruptive technologies based on ICT, robots, and artificial intelligence have transformed labour markets through their important effects on employment. As the number of industrial robots continues to rise, our results imply that some measures to facilitate workforce transition and accommodate the rise of automation might be needed to maintain satisfactory labour market outcomes.

By: David Pichler, Georgios Petropoulos and Francesco Chiacchio Topic: Innovation & Competition Policy Date: June 15, 2018
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Blog Post

Trade wars: Just how exposed are EU Member States and industries to the US market?

This blog focuses on how a more restricted access to US final demand could affect EU economies and sectors, by measuring their share of value-added absorbed in the US. The exposure of the EU as a whole in value-added terms is lower compared to that suggested by gross exports to GDP and, overall, gross exports misconstrue the picture of spill-overs through trade linkages. For individual countries, the degree to which gross exports overestimate or underestimate exposure is relatively small, with the important exception of Ireland. However, gross exports significantly overestimate the exposure of EU manufacturing to US final demand.

By: Francesco Chiacchio and Konstantinos Efstathiou Topic: Global Economics & Governance Date: June 1, 2018
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Podcast

Podcast

Robots: Positive or negative for EU employment?

Bruegel research fellow Georgios Petropoulos features in this episode of ‘The Sound of Economics’ to discuss a study he has co-authored on the impact of robotisation on employment in Europe.

By: The Sound of Economics Topic: Innovation & Competition Policy Date: May 29, 2018
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Past Event

Past Event

Youth up Europe: The future of work: towards safeguarding young people's rights in the era of increased digitisation

This event will discuss what impact digitisation will have on the employment opportunities for young people and how we can safeguard their rights.

Topic: European Macroeconomics & Governance, Innovation & Competition Policy Location: Av. Rei Humberto II de Itália, 2750-642 Cascais Date: May 10, 2018
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Past Event

Past Event

Protecting EU firms without protectionism

Do we need more effective support for EU companies, more targeted to threatened sectors of strategic importance to the EU? Do we need to revise our competition policy rules on state aid to allow for a more strategic industrial policy support? Do we need new policy approaches to prepare for a changing global environment?

Speakers: Vincent Aussilloux, Tomas Baert, Paolo Casini, Gert-Jan Koopman, André Sapir, Reinhilde Veugelers and Focco Vijselaar Topic: Innovation & Competition Policy Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: May 3, 2018
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Working Paper

The impact of industrial robots on EU employment and wages: A local labour market approach

In theory, robots can directly displace workers from performing specific tasks (displacement effect). But they can also expand labour demand through the efficiencies they bring to industrial production (productivity effect). This working paper adopts the local labour market equilibrium approach developed by Acemoglu and Restrepo to assess which effects dominate and the impact of robots on wage growth and employment rate in Europe.

By: Francesco Chiacchio, Georgios Petropoulos and David Pichler Topic: Innovation & Competition Policy Date: April 18, 2018
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Past Event

Past Event

Robots and artificial intelligence: The next frontier for employment and EU economic policy

This event looked at the impact of robotics and artificial intelligence on employment, wages and EU economic policy.

Speakers: Pat Bajari, Julia Bock-Schappelwein, Anna Byhovskaya, Paola Maniga, Mario Mariniello, Clara Neppel, Loukas Stemitsiotis, Georgios Petropoulos and Barry O’Sullivan Topic: Innovation & Competition Policy Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: April 18, 2018
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Blog Post

The European Globalisation Adjustment Fund: Time for a reset

It is only in the last decade that the EU has had an active policy to reintegrate workers who lost their jobs as a result of globalisation, through the European Globalisation Adjustment Fund (EGF). In this blog, the authors assess the performance of the Fund and make three recommendations to improve its effectiveness. To be more successful, the Fund should improve its monitoring and widen the scope of its usage.

By: Grégory Claeys and André Sapir Topic: European Macroeconomics & Governance Date: April 11, 2018
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Policy Contribution

The European Globalisation Adjustment Fund: Easing the pain from trade?

With the European Globalisation Adjustment Fund (EGF), the EU now has an instrument to help workers negatively affected by trade find new jobs. However, only a small proportion of EU workers affected by globalisation receive EGF financing. How to improve the EGF? Revising the eligibility criteria to qualify for EGF assistance, enlarging the scope of the programme beyond globalisation and collecting more and better data to enable a proper evaluation of the programme.

By: Grégory Claeys and André Sapir Topic: European Macroeconomics & Governance Date: March 22, 2018
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