Current Industrial Policy and Innovation Strategy of the European Union

Abstract

Industrial policy determines the guidelines for developing the innovative power of any entity in the global economy, including the European Union. The effectiveness of industrial policy contributes to the favourable innovation climate and is the driver of economic development. Thus, the analysis of the European Union's current industrial policy and innovation strategy is essential for Ukraine. The article aims to study the current industrial policy and innovation strategy of the European Union. The work examines the current industrial policy and innovation strategy of the European Union. It is noted that the evolution of modern industrial policy in the European Union is associated with the use of two models: vertical (selective) and horizontal (functional). It analyses the provisions of the New Industrial Policy of the European Union 2021–2027, which were grouped in three documents. The measures proposed by the European Commission for the restructuring of European industry have been identified. It has been found that today the European Union ranks only third (after China and the United States) in the development of innovative researce and development. The research reveals that the European Union today actively uses the existing integration tools as a priority to "pull" the lagging countries to the level of innovative development of the advanced group of member states. Restrictions on the domestic policy of the European Union member states in technological development have been systematised. The article analyses the current strategy of the European Union in the field of innovation and reveals the goals and directions of innovation development provided by it. It presents the most important mechanisms that form the basis of the European Union's policy in supporting "open innovation". However, it is concluded that the European Union today is actively using existing integration tools to "pull" lagging countries to the level of innovative development of the advanced group of member states (27), which should lead to increased innovation and competitive power of the European Union as a whole.

Innovative Aspects of the Economic Development of Smes: Experience of the Eu and Ukraine

“…In the services sector, these indicators are 73% for large enterprises, 49% for medium-sized enterprises and 37% for small enterprises (European Innovation Scoreboard 2020). In 2021, the European Commission will publish the annual European Innovation Scoreboard, which provides an assessment of innovation activities in EU countries and compares their performance with their main competitors (Zayats, Yarema, 2022).…”

“…On average, innovation efficiency in the EU grew by 12.5% between 2014 and 2021, with five member states increasing productivity by 25% or more (Cyprus, Estonia, Greece, Italy and Lithuania), four by 15-25% (Belgium, Croatia, Finland and Sweden), eight by 10-15% (Austria, Czech Republic, Germany, Latvia, Malta, the Netherlands, Poland and Spain), and the remaining 10 member states by 10% (Zayats, Yarema, 2022).…”