EU Industrial Policy
Translated into Ukrainian, this document is an example of a modern, holistic approach for government policy in the industry. In particular, we see a clear understanding of the key role of industry for the EU economy and the equally clear formulation of key factors for industrial development, such as the focus on industrial innovation and investment in them, a special focus on digitization and sustainable development, the building of global value creation chains, inclusiveness and priorities for attracting investments, etc.The document is a must read for representatives of central and regional HEVs, as well as for other policy makers.
Indicators of Industrial Policy
This document is a ready-made benchmark for all industrial policy makers. It describes performance indicators for industrial development in several key categories – such as innovation, investment attraction, digitalization, international cooperation and the single free market. In each of these categories, there is a set of KPIs in which the EU will measure the effectiveness of its programs and policies. Must reads for each policy maker of all levels.
European industry- a vision for 2030.
This document should be read by any specialist who in one way or another is connected with industrial production. He does not just set the benchmarks for the future. Authors, in fact, explain why the EU needs such a future in a globalized world of fierce competition and constant change. For example, the main factor of success is digitalization. But not because it is just “wanted so much” or “like everyone.” Massive and managed digitalization is simply an intelligent response to the challenges of growing competition, lagging behind the United States and Asia, the growth of innovation, but also the challenges of improving social and environmental aspects, as possible job losses. Innovation and digitalization radically set new benchmarks in the aspects of personnel training and the entire education system. And so on -the document builds causal relationships that eventually give a holistic vision that the EU sees itself.
National Strategy for Industry 4.0
The draft National Strategy for Industry 4.0, developed by a group of experts from APAAU and Rukh 4.0, came out in December 2018. It was transmitted to the CMU and available for expert discussion. There was no reaction from the CMU at this time. In this publication – a description of the main directions of the strategy.
Recognizing the key importance of industrial development for the Ukrainian economy from the point of view of the contribution of the sector to job creation, exports, and the development of innovative potential, we call on the newly elected President, the future composition of the Verkhovna Rada and the Cabinet of Ministers, and political parties to make the issue of industrial policy of Ukraine the top priority of the political agenda.
Developed countries understand the importance of modern industry and constantly take care of its development. At present, the world is undergoing a renaissance of industrial policies in the form of industry strategies 4.0 – digitalization of processes throughout the chaininess models. Instead, the reverse process of de-industrialization continues in Ukraine, and most industrialists are far from digitizing tasks. In 2018, the share of manufacturing industry in GDP was only 11.5%. Most indicators of industrial development created a huge backlog of Ukraine even from neighboring countries.
Therefore, while supporting the course on Ukraine’s integration into European and world space, we call upon all branches of state power to position the state in the world as an industrial and technological state.
We call on the President, the new Parliament and Government, and the political parties of the future coalition, to implement the following 3 steps as soon as possible:
- To officially consolidate industrial development as one of the highest political priorities of the agenda of its activities.
- To approve the Industrial Development Strategy, which focuses on creating new processing capacities in the national economy, digitalization and infrastructure reconstruction.
- To introduce the post of Deputy Prime Minister for Industrial Policy, whose mandate will include coordination of industrial, innovative, export and cluster development issues.
Successful implementation of policies and policies at all levels of government requires a number of conditions.
- Creation of a favorable business climate in the country: The development of Ukrainian industry requires basic reform judicial, regulatory, financial services, intellectual property right protection, and so on.
- Priority to medium and high-tech industries: The policy should focus primarily on those sectors that produce the highest added value, create jobs in related industries, actively integrate into production chains.
- Inclusiveness and co-ordination: The state should focus on creating equal rules of the game for all domestic producers. At the same time, promotion of small and medium-sized businesses should remain a priority of state policy. The state must find a financial resource for modern industrial development.
- Mass and fast digitization: The implementation of the initiatives envisaged by the Digital Agenda for Ukraine (in particular, within the framework of Industry 4.0 as the creation of road maps for the digitization of certain industries and enterprises, the transition to new digital standards, and educational activities among enterprises) should provide for a comprehensive digitalization of the Ukrainian industry, the economy and the state as a whole.
- Support the development of innovative ecosystems: Creation of high-tech industrial products requires appropriate viable infrastructural elements (techno-industrial parks, business incubators, R&D centers and technology transfer, accelerators and start-up incubators, etc.). At the same time, synchronous actions are needed on the reform of education, science, support of cooperation in the field of research and business, acceleration of processes of using new technologies in industry, involvement of regional and cluster development tools.
This document is a co-ordinated position supported by the following business and industry associations, chambers of commerce and industry of Ukraine, political parties, regional development agencies, leading analytical and research organizations (the list of organizations is expected).