Industrial

1
Industrial Innovation Policy
BELGIUM
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Belgium


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Agenda

• Introduction
• Political System
• Economic Profile
• Industrial policies

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1. Introduction
Belgium in Europe
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? Introduction

• Situated in the centre of Western Europe
• Very small ca. 32.500 km²
• Population ca. 10.000.000
• Capital Brussels
• Neighbours The Netherlands, Germany, France,
  Luxembourg UK

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2. Political system

• 1830 independence unitary state
• BUT language border! gt Flanders / Wallonia
  / Oostkantons
• 5 state reforms
• 3 Communities
• 3 Regions

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? Communities Regions
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? A structure on 3 levels
Federal state 3 Regions 3
Communities
10 Provinces
589 Communes
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? Competences

• Federal state
• Everything that affects the interests of all
  belgians foreign affairs, national defence,
  justice, finance,
• Responsabilities vis-à-vis the EU and NATO
• Communities
• Matters relating to the people language,
  culture, education,
• Regions
• Territorial matters town planning, employment,
  environment,
• Foreign trade!!

? Problems!!!
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3. Economical profile

1. Geographical situation
2. General Economics
3. International cooperation
4. Economic problems

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a) Geographical location

• Lack of mountains border to North Sea
• In the centre of the industrial square Ruhr
  -- Randstad Holland -- Nord-Pas de Calais --
  Lorraine-Saarland
• in the centre of European megalopolis , a major
  urban and economic corridor (Liverpool Genua)

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b) General economics

• real economic grotwh 2003 1,0
• inflation 2003 1,3
• GDP per capita gt 13 gt relative wealth
• revenue per worker 62.560 (20 higher
  than EU average)

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? GDP in Belgium
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? Import Export

• 50 of export neighbours
• 25 of export other EU members
• Foreign investment!
• Ups and downs of economy -- fluctuations of our
  neigbours

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? Import Export

• 40 of export 3 large groups
• Transport equipment
• Machinery appliances
• Chemical pharmaceutical products
• Other 60 large variety
• Diamonds, carpets, comic books childrens books,
  linen, flowers (azalea begonia), beer,
  chocolate,

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c) International cooperation

• prosperity dependent on external trade gt
  active part in intern. cooperation
• BLEU
• Benelux ( Benelux Trademark Office)
• One of the 6 founder countries of ECSC, EEC
  Eurotam
• pro european unification!

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d) Economical problems

• Unemployement
• 14 of active population
• High wage cost, high labour cost, structural
  problems of Labour market
• 200.000 new jobs lt-gt - 4.000 Ford
• Administrative burden
• Costs for administrative tasks 3,4 of GDP
• Lack of entrepreneurship!
• state secretary of administrative
  simplification
• Government deficit
• Welfare state

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d) Economical problems

• Government deficit
• Extreme until 1993
• Draconian rehabilitation plans
• government debt/GDP ratio 110.6

• Administrative burden
• Costs for administrative tasks 3,4 of the GDP
  (around 9 billion )
• Lack of entrepreneurship!
• state secretary of administrative
  simplification

• Welfare state
• Ageing populiton gt not engough money to pay
  pensions
• Early retirement at 55 (even 50)

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4. Industrial and innovation policies

• Belgian industry in general
• Regional policy
• Kortrijk-region --- Flanders Language Valley
• Euregio Maas-Rhine
• Flemish Diamond

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? Belgian industry in general

• Industrial sector
• 1/4e of all jobs
• 30 of added value
• Major regional contrasts
• North industrialised
• Antwerp chemical sectors
• Ghent, Zeebrugge, Brussels
• Central Flanders, Kortrijk-region, North-east
• South not industrialised at all (anymore)

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? Belgian industry in general

• De-industrialisation Teriarisation
• structure of industrial activity has changed a
  lot
• De-industrialisation since 50s
• 1957-1992 all 120 coalmines have been shut down
  (in Flanders)
• Production of steel (Wallonia) almost entirely
  stopped
• decline in jobs compensated by development in
  tertiary sector

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b) Regional policy

• Complex structure different cultures gt no
  single industrial policy
• Stimulation of regional development within
  different Communities Regions
• Wallonia after decline of steel production ??
• Flanders certain regions developed
• 70s 80s Euregio Maas-Rhine
• Early 90s Kortrijk-region
• Late 90s Flemish Diamond

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Kortrijk-region Flanders Language Valley

• Light industries, SMEs, local management
• Part Flanders Language Valley (speech tech)
• Cluster of localised technological change
• After Sillicon Valley-model strong pilote firm,
  venture capital, education, informal networking
• LH research lab a common source of codified
  knowledge
• Fast entrepreneurial reaction gt developing broad
  range of applications
• Favourable communication conditions ? innovative
  linkages between SMEs

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Kortrijk-region Flanders Language Valley

• Companies mutual advantage
• learn form each other
• Using common pools of resources in proximity
• E.g. employees in collective pools of labour
  created by several education and training
  programmes
• But owners of LH FRAUDE !
• Big scandal
• Technology sold to Americans
• FLV collapsed

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? Euregio Maas-Rhine
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? Euregio Maas - Rhine

• Norhteast of Flanders, near Holland Germany,
  near Maas and Rhine rivers
• Lagging region without industries
• 70s development started, because in New Europe
  cross-border cooperation at local and regional
  level was becoming more important
• Agreement with Holland Germany
• Large foreign companies ( lt-gt SMEs in FLV)
• Benefited from large amount of labour force

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? Flemish Diamond

• Region in centre of Flanders,Antwerp Ghent
  Brussels Leuven
• Urban network on international level
• Industrial economy gt knowledge economy
• Knowledge critical succes factor for the future
• Well-functioning urban network, modern
  infrastructure to transport goods and person are
  necessary
• Growth of Flanders depend on development of this
  diamond

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• --Wim Dooms -- 29-10-2003--