DIW-OECD Industrial Strategy Dialogue

Amidst a global battle for technological leadership in fast-changing and emerging industries, Europe has been losing competitiveness. Productivity remains weak. While innovation is taking place in the EU, its large-scale commercialisation often occurs abroad – along with the creation of new firms and employment that accompany it. Industrial policy could help address these challenges, but too often is design to shield firms, industries and innovation activity from international competition. Our panel discussion will explore the role of competition policy as a cornerstone of successful industrial and innovation policies, and how industrial policies can be designed to foster, rather than hinder competition. What policies can strengthen competition in the EU, and how will they foster innovation, internationalisation and productivity growth? 

What role can a less fragmented Single Market and a more integrated capital and banking union play in supporting such strategy?

In his keynote speech, Tomaso Duso, Head of the “Enterprises and Markets” department, emphasized the central importance of competition for achieving industrial policy goals such as international competitiveness. Against the backdrop of years of declining competitiveness of European economies vis-à-vis the US and China, as well as increasing corporate concentration in many sectors, he argued for consistently aligning industrial policy decisions with competition and systematically considering competition perspectives.
In the subsequent panel discussion between Tomaso Duso, Markus Heß (Head of Division, Industrial Policy Issues at the Federal Ministry for Economic Affairs and Energy) and Ori Schwartz (Head of the Competition Division at the OECD), the role of competition policy as a central element of modern industrial policy and the challenge of making innovation promotion through subsidies competition-friendly were discussed. Other topics of focus included fair access to government support for small and young companies, the role of public procurement, the special requirements of digital markets, and the green transformation. Overall, it became clear that industrial and competition policy must be closely coordinated in order to ensure innovation and fair competition in the long term. The event was moderated by Nicola Brandt (OECD Berlin Centre).