ევროკავშირის ქვეყნების წარმატებული ინდუსტრიული პოლიტიკის სახელმძღვანელო პრინციპე (Georgian)

There is no shortage of innovative digital business ideas in Europe, but only a few companies are expanding or creating access to global markets, while other major commercial players (often benefiting from government support, low regulatory standards or low tax rates) threaten Europe's influence on technological development and challenge European values and interests. Scholars in the EU believe that Europe should strive for both open strategic autonomy and technological sovereignty, reducing its dependence on third countries for some key technologies, especially in terms of security. In addition, it can be noted that in an increasingly geopolitically fragmented world with strong players, the EU is able to defend its position only in certain cases. As a trading superpower with a multilateral order, with its social economy model, it achieves its goals if it has the highest qualitative advantages. The EU seeks strategic autonomy, which does not require the obligatory presence on any side in the G-2 economic conflict (USA and China)."Horizon Europe" presents the so-called "EU Missions", which means specific goals to be achieved through research and innovation. In this case, managers are responsible for each goal. These five missions include: adaptation to climate change; fight against cancer; restoration of oceans and waters; climate-neutral smart cities; and soil. At the EU level, great efforts are being made to support the competitiveness of European industry by creating a level playing field, constantly adjusting the legal framework (policy of the order) in order to change the economic reality and encourage investment. The criticism of an active industrial policy is that it has certain risks. The question arises: what is the basis of this problem and how to identify opportunities to mitigate it?. First, given that it is about supporting a particular sector or technology, industrial policy is at high risk of being seized and influenced by interest groups. Moreover, in times of rapid technological change, there is a risk of focusing resources on building leadership in areas/technologies that can quickly lose strategic relevance. Finally, there is the risk of maintaining support even when it is no longer needed or when it becomes clear that the policy is not working, and there is also the risk of early termination of support. This is especially true when political leaders are actively involved in the process, linking the success of the policy to the success of the particular firm that serves as their "national champion". Following Russia's invasion of Ukraine in April 2022, the EU government unveiled a "recovery package" of renewable energy policy reforms. It aims for 80 percent renewable energy in 2030 and 100 percent in 2035, meaning the annual expansion must quadruple to reach the 215 gigawatt target set by the end of the decade. In this area, industrial policy has been little affected, indicating that it (industrial policy) has had only a limited positive impact on innovation and the economy as a whole. At the same time, this created huge financial obligations for governments. Since the 1980s, this belief in the limited power of industrial policy (and governments more broadly) has spread to developing countries as well. Most of them, after two decades of massive public investment, were finally forced into market liberalization (what has been called the "Washington Consensus"). Based on the identified successes and failures, there are six key features that should be taken into account when developing successful industrial policies in order to maximize their impact on innovation and minimize the associated risks. Features of the European industrial policy: I. Orientation to the future. Industrial policy should focus on present and future innovation. Its purpose is to stimulate those industries in which market failure prevents the desired equilibrium from being established. This approach contributes to the strategic autonomy of the EU. II. Focus on industry and technology. Focus on areas and technologies, not individual companies. The goal of industrial policy is to promote long-term competitiveness and sustainable growth without compromising consumers. III. Competition is power. An effective industrial policy should not be aimed at strengthening existing players in the market. An effective industrial policy should not weaken competition policy, especially through mergers and acquisitions. IV. The actions of economic policy are carried out from the top down, but also from the bottom up. Industrial policy is a top-down approach to economic development. However, it should not be transferred to economic planning. It should encourage experimentation and innovation from the bottom up. V. Accountability, impartiality and adaptability of industrial policy. Transparency is key to preventing or reducing the risk of undue pressure on policy from interest groups. Policy outcomes and assumptions need to be constantly monitored and adapted quickly if necessary. VI. Holistic (unifying) approach. A successful industrial policy should not only promote innovation in critical technological areas (for example, through targeted research and development), but also use the tools to boost demand growth in these sectors. Industrial policy, even if successful, may have some negative side effects that need to be mitigated. In this regard, the key role belongs to the green and digital transformation, which is rapidly expanding and gaining more importance, ensuring the prosperity of Europe in the 21st century. [ABSTRACT FROM AUTHOR]

Copyright of Economics & Business (1987-5789) is the property of Ivane Javakhishvili Tbilisi State University, Faculty of Economics & Business and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)