Diapositiva 1

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European Economic and Social Committeeconsultativ
e commission on industrial changeThe global
financial crisis and industrial changes in the
main European manufacturing and services sectors
Patrizio Bianchi Impact of the actual economic
downturn on Member States interventions in
industry Bruxelles, 6 February 2009
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General situation and developments State
peculiarities Sectorial specificities
QUESTIONS

• Impact on
• investments (RD)
• company relocation
• - employment levels
• international trade

• Policy actions
• to support industries
• to maintain the SMarket aquis
• to sustain jobs and incomes

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financial crisis and industrial downturn

• The crisis arose in the summer of 2007 the market
  for U.S. real estate loans, having rapidly
  expanded to every sector of finance and the whole
  world, has struck in recent months the real
  economy, influencing the choices of consumption,
  investment and production. The dynamics of the
  product in major economies has worsened affected
  time of crises, including the emerging countries
  (Bank of Italy, Monthly Bullettin, Jan 2009)
• this is true, but the recession is also a result
  of the adjustment process of globalization
• Financial, structural and sustainibility crisis

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1. Globalization has been an extraordinary
expansion of the extent of the market
2. Emerging countries enter the global market
changing both supply and demand of market
goods 3. pushing every national industry to
adjust their production organizations to the new
global market context
4. Financial crisis has struck industries in the
stage of structural readjustment
How deep and how long is the crisis?
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the American industry is suffering from many
years of a deep internal crisis, the investment
went toward the financial sector and real estate,
and into sectors based on military applications.
The case dell'automotive
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Production is highly concentrated in coastal
areas and in Guangdong. crisis took the Chinese
industry (Guangdong) in the phase of strategic
repositioning and relocation of production to
the western provinces, but this strategy
failed The risk is a strong social tension
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Europe

• the crisis hits Europe after a long period of
  growth at very low rates
• all European countries were implementing
  structural adjustment processes to production and
  services with higher added value with a
  relocation of production
• impacts of the crisis are differentiated because
  of exposure of the country to the international
  financial market, the internal public debt, the
  structure of the industry, the capacity to invest
  in R D
• Germany case

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Industrial cases

• 1. Automotive sector
• new markets new industries and overcapacity,
  new goods and environmental pressure, MA and the
  entire subcontracting innovation process
• 2. Textile and fashion
• textile and garment vs. FAD trends networks of
  production and distribution quality and branding
  strategies
• 3. Pharmaceutical industries
• minor direct impacts, but the risks for long-term
  research, a worldwide relocation of research and
  production,and a need to redefine the model of
  public regulation
• 4. Energy sector
• developing and leverage technology to shift away
  from oil dependance, but also new technology for
  housing, urban planning, environmental management
  

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Strategy elements

• financial crisis has highlighted the structural
  problems of industry and the limits of
  sustainability related to globalization it was
  decided to expand to the whole world the same
  pattern of production and consumption first
  operating only in the advanced countries
• the crisis is a powerful challenge to rethink the
  model of public regulation and production
  strategies of firms
• This unprecedented crisis will reshape the
  industry in the world and the companies that
  successfully manage this change will be the
  leaders of the future
• Regenerate the competitive advantages Knowledge
  and human resources, Networks and small firms,
  fundamental research and diffusive technology,
  new public goods and social responsability

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Policies

• The first industrial policy is to restore the
  idea that production, work and learning are the
  true wealth of nations
• The countries must move together, and we must
  strengthen common action to prevent the push to
  reduce the Single Markets aquis we need of more
  Europe
• Strengthening the Lisbon Strategy and remember
  that the new demand is for public goods, such as
  health, environment, education, urban quality
  these public goods are also the most powerful
  technological driver
• Small and medium enterprises, coop activities,
  social works strategies for creating jobs and
  solidariety, we need to have more sense of
  Community.

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PROF.PATRIZIO BIANCHI Full Professor of Applied
Economics President of the University of
Ferrara President of the Foundation of the
Conference of the Italian University
Rectors Honorary Professor South China University
of Technology
Recent publications - High technology,
productivity and networks a systemic approach to
the development of SMEs (con R.Sugden e
D.Parrilli), Palgrave-Macmillan, Londra, 2008 -
International Handbook of Industrial Policy (con
S.Labory), E.Elgar Pu., Londra, 2006 - The
Economic Importance of Intangible Assets (con
S.Labory), Ashgate Pu., 2004, Londra -
Technology, Information and Market Dynamics,
Topics in Advanced Industrial Organization (con
L.Lambertini), E.Elgar Pu., Londra, 2003