Industrial policy is once again in vogue in public policy circles around the world. Yet it is crucial to ensure coherence between place-based innovation and EU industrial policy. For doing so, this contribution proposes a backcasting, mission-oriented and foresight-inspired approach to sustainable, resilient and secure development in the EU. It encourages the EU to fully embrace economic complexity when looking at its geography and that of the rest of the world.
Underlying the proposed approach is recognition that past attempts at goal-based policymaking have overlooked key trade-offs. This in turn has sowed discontent and significantly polarised public opinion, with non-metropolitan areas witnessing a rise in anti-EU sentiment. It is argued here that mono-dimensional approaches to industrial development are unlikely to deliver prosperity and well-being, which are the EU’s ultimate goals. Instead, a multidimensional approach aimed at addressing the key trade-offs is much more suitable.
About the author:
Andrea Renda is Director of Research at CEPS since 1 November 2023. He also leads the CEPS Unit on Global Governance, Regulation, Innovation and the Digital Economy (GRID).