Green Deal? We now also need an industrial deal – expanding our innovation lead and maintaining competitiveness
Published on: June 10, 2024 / Update from: June 10, 2024 - Author: Konrad Wolfenstein
🚀🔬 High technology in Europe: mastering the challenges for a competitive future
🏭 High-tech industries: Maintain and expand the EU location
In an increasingly globalized world, high technology is the key to economic growth and social prosperity. However, the European high-tech industry, which is largely characterized by small and medium-sized companies, is facing profound and sometimes existential changes. These challenges not only endanger the competitiveness but also the future viability of these industries.
The companies' response to these challenges was remarkable: with tireless drive and passion, they found ways to defy adversity. However, this personal initiative is not enough. The industry needs a stable and competitive regulatory framework. Only through decisive political action can these promising sectors be sustainably strengthened in order to continue to make a valuable contribution to Europe as a location and its people.
During the crisis years characterized by the pandemic and geopolitical tensions, companies did not receive sufficient relief. The last legislative period of the EU Parliament and the term of office of the EU Commission were characterized by a remarkable increase in regulations, in which important concerns of the industry were often overlooked or taken into account too late. This led to a situation in which even medium-sized companies increasingly question their future in Europe.
🏭 The danger of deindustrialization and the need for political intervention
Comprehensive deindustrialization is now threatening the European economic landscape. This process has already started in some areas. The EU must focus on the backbone of its prosperity and make clear and quick decisions in these economically challenging times to maintain the competitiveness of its industry. The simultaneous transition to a climate-neutral economy and society can only be successful if the foundations for successful economic activity are preserved and promoted.
It is essential to link a Green Deal with a parallel “Industrial Deal” that focuses on an ambitious, innovation- and SME-friendly industrial policy. This is the only way to find the necessary balance between ecological responsibility and economic strength.
🔬 High technology: remove hurdles, expand innovation lead, provide incentives
In order to protect and develop Europe's high-tech industry, excessive bureaucratic hurdles must be reduced. The EU should work to create an innovation-friendly environment in which high technology can thrive. This also includes placing greater emphasis on incentives for research and development activities in order to expand Europe's innovative lead.
🔍 Overregulation: reduce bureaucracy, maintain high technology
The increasing regulatory pressure on the industry must urgently be reduced. Simplifying procedures and reducing bureaucratic hurdles are essential to maintaining the competitiveness of European high-tech companies. At the same time, the regulations should be designed in such a way that they support technological developments and innovation cycles instead of hindering them.
🌍 Foreign trade: remove hurdles, harmonize regulations
In the area of foreign trade, it is important to reduce existing trade barriers and harmonize regulations within the EU and at international level. Improved management and coordination can help facilitate access to global markets and strengthen Europe's position as a high-tech location.
💻 Digitalization: Creating transformation, ensuring competitiveness
Digitalization is another crucial factor for the competitiveness of European industry. To achieve digital transformation, investment in digital infrastructure and capabilities must be increased. This includes both the expansion of the broadband infrastructure and the promotion of digital education and further training. This is the only way companies can remain competitive in an increasingly digitalized world.
🌱 Green Deal: expand to include an Industrial Deal, maintain competitiveness
The Green Deal, which is intended to lead the EU on the path to a climate-neutral economy, is without a doubt an important step. But this must be complemented by an equivalent “Industrial Deal” that ensures that the competitiveness of European industry does not suffer from the necessary ecological measures. Such an industrial deal should focus on innovation and SME-friendly measures in order to secure a sustainable industrial base in Europe.
📝 Ensure legal and planning security, ensure predictability
Legal and planning certainty is of utmost importance for the industry. Companies must be able to rely on the political and legal framework remaining stable and predictable. This is the only way you can plan and invest for the long term. This is particularly true for large-scale projects in the high-tech industry, which often require long lead times and significant investments.
⚖️ Exercise a sense of proportion and prevent the decline of strategic industries
Political decisions should be made carefully and with a sense of proportion in order to prevent the decline of strategically important industries. It is crucial to take both ecological and economic aspects into account and to find a balance that does justice to maintaining and promoting the industrial base in Europe.
🔒 Prioritize safety, enable research and diagnostics
In times of increasing geopolitical uncertainty, the security of supply chains and production sites must be prioritized. Europe should aim to reduce its dependence on third countries and strengthen the resilience of its industry. At the same time, increased investment should be made in research and diagnostics in order to promote technological breakthroughs and innovations.
💼 Create reliable framework conditions, avoid high-tech migration
In order to avoid the migration of high-tech companies from Europe, reliable framework conditions must be created. This includes not only financial incentives and investment security, but also the creation of an attractive environment for highly qualified specialists and innovative start-ups. Europe must remain attractive as a location for high-tech companies and be able to assert itself against international competitors.
In summary, it can be said that reducing bureaucracy and creating a comprehensive industrial deal are essential to maintain and expand the innovative strength and competitiveness of the European high-tech industry. Only through decisive action and a targeted industrial policy can Europe secure its role as a leading high-tech location and at the same time successfully shape the transition to a sustainable and climate-neutral economy.
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- 🌱 Green Deal and Industrial Deal: double strategy for Europe
- 💡 Reducing bureaucracy: A key to Europe's high-tech success
- 🌐 Europe in global trade: Harmonization as a competitive advantage
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#️⃣ Hashtags: #EuropeHightechZukunft #InnovationPromotion #PreventDeindustrialization #IndustrialDeal #DigitalizationBoost
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🌍 Europe needs high-tech industries, high-tech industries need Europe
⚙️🔬 Innovation-driven high-tech industries are essential for the future viability of Germany and Europe as economic locations with poor raw materials. However, the predominantly medium-sized industries are facing enormous, sometimes existential, changes. Their competitiveness and therefore future viability is massively threatened due to disadvantageous location factors such as over-regulation, energy costs or trade restrictions. “Europe needs high-tech companies. But high-tech companies also need Europe. You need innovation and competition-friendly policies. Otherwise there is a risk of emigration and thus increasing deindustrialization of the European Union,” says Dr. Bernhard Ohnesorge, Chairman of SPECTARIS (German Industrial Association for Optics, Photonics, Analysis and Medical Technology) and Managing Director of Carl Zeiss Jena. “In order to be able to keep up with other regions of the world, the ability to bring products to market quickly and without unnecessary detours is crucial for the future viability of companies,” adds Ohnesorge. There is already significantly less investment in new machines and systems in the EU countries than in the USA and China.
💼📉📈 In the current legislative period of the EU Parliament and the term of office of the EU Commission, more new regulations have been introduced to the detriment of industry than ever before - and this in the years of crisis caused by the pandemic and war, in which companies are already had to fight. According to a survey, for over 60 percent of companies, EU regulations go beyond a beneficial level and inhibit long-term investment decisions. “A situation has now arisen in which medium-sized businesses are increasingly questioning their prospects in Europe,” adds Ohnesorge, pointing out that companies need a stable and competitive regulatory framework.
🔧🚀🌟 Only through decisive political action could the sectors of the future position themselves sustainably and continue to make a valuable contribution to the location and the people in Europe. In a new position paper, SPECTARIS presents the adjustment screws that European policy needs to turn based on four central recommendations:
- ⚕️ Regulatory framework conditions must be kept to a minimum. An ambitious in-out ratio must be set bindingly at the European level with the aim of significantly reducing the density of regulations and the compliance costs. So that the European reporting requirements do not further paralyze companies, they must be reduced to a minimum.1959
- 🏢 The transformation to a climate-neutral economy and society can only succeed if the foundations for successful business are preserved and promoted. A Green Deal that does not at the same time significantly improve the framework conditions for European industry is doomed to failure. Dialogue with industry is essential, especially when it comes to environmental and material policy. Because unilateral decisions and comprehensive restrictions mean that relevant, sometimes vital, products can no longer be manufactured and sold. An ambitious “Industrial Deal” would therefore be the necessary companion to the existing Green Deal.
- 🌍📦 Due to the high and constantly growing export rate of high-tech industries, future markets and opportunities that are opening up in the globalized world must be exploited. The prerequisite for the great export strength of the high-tech industries represented by SPECTARIS is access to foreign markets that is as barrier-free as possible. It is therefore important to harmonize national regulations: The EU Commission must introduce uniform export control standards in all EU member states in order to shorten processing times.
- 🏥 The importance of the industrial healthcare industry and especially the medical technology industry for the people of Europe must be reflected in political actions. The aim of the Medical Devices Regulation (MDR) is to simplify processes and shorten procedure times.
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#️⃣ Hashtags: #Europe #High-Tech Industries #Regulation #Competitiveness #Investments
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