Instructional goals
The course will provide an overall knowledge of:
- the essential tools of industrial policy;
- the main turns in the history of industrial policy in the European context through a comparison of the different national experiences;
- the comprehension of the main dynamics in the relationship between the State and the Market regarding industry.
The course will focus on the current developments of the EU industrial policy choices in the light of the current challenges:
- the twin (green and digital) transition;
- the impact of the Covid 19 pandemic and the Ukraine war on global value chains;
- the geo-political risks and implications in terms of security;
- the increased global competition in strategic industries and the need to foster “open strategic autonomy”
Prerequisites
Knowledge of the principles of the EU Treaties and EU legislation as well as all relevant acts (policy papers, etc.) adopted by EU institutions and Member States.
Intended learning outcomes
Knowledge
Periodize the post World War II’s European economic history thus understanding the different phases of EU industrial policy.
Develop understanding of the main tools of industrial policy and their application to the European industry scenario.
Analysis
Analyze the European industrial system in the light of major transformations, such as the impact of the pandemic, global competition and international trade, the acceleration of digital transformation, the climate change challenge, the tensions in the geo-political scenario.
Application
Gain knowledge of institutions and main policies having a significant impact on industrial competitiveness.
Comprehension
Understand the main trends in European industrial policy and the relationship between european policies concerning EU Industry and policies carrier out at different levels of government (European, national and regional).
Course Contents
Develop students’ knowledge concerning:
- principles regarding the role and evolution of public policies in support of industry and their impact on industrial competitiveness since WWII;
- the institutional framework of industrial policy between EU and national level;
- current policies adopted at EU level compared to other macro regions to foster industrial growth and their possible future evolution.
Reference Books
For the full reading list, please refer to LuissLearn. Some recommended readings are indicated below in relation to the individual lectures.
The list will be supplemented with specific articles that students will be required to read before each lecture.
Every lesson will be accompanied by slides, which will be posted on the class website immediately afterwards to provide useful guidance for course preparation.
Teaching Methods
Blended: frontal and participative method through project works.
- Class participation is crucial for a successful preparation. The course on European Industrial Policy mainly relies on EU policy papers, international press articles, comments and reports that Professors will provide in advance and that students will be required to read and comment during the lecture.
- Simulations: during the course the dynamics of policy decision making will be simulated.
- Case studies will be investigated with the support of external experts.
Assessment Method
Assessment will take place on a continuous and widespread basis, therefore class participation is of utmost importance.
70% of the final grade will depend from individual and/or group work and class participation.
30% of the overall grade will depend from the final oral exam. The final exam will start from a short paper (1200 words) on one of the topics of the course the students will choose to report on. The paper must be consigned one week before the exam. Starting from the written paper the final exam will evaluate the overall preparation gained during the course through questions and discussion.
Thesis assignment criteria
All the information about the thesis can be reached at the following link:
Assegnazione tesi ed esame di laurea | Luiss
Request for a thesis and final graduation
Week 1
Course presentation and organization
Industrial policy and the EU
- What is industrial policy?
- Definition, rationale and main legal instruments
- Main trends in current industrial policy at EU and global level
- Key features of European industrial policy (Single Market, competition, trade, financial support, protection of strategic assets)
- The industry’s role in the European economy: from the Industrial Revolution to the current potential impact of the manufacturing sector on the growth and competitiveness of the European economy
Readings
OECD, 2022, An industrial policy framework for OECD countries: old debates, new perspectives https://www.oecd.org/publications/an-industrial-policy-framework-for-oecd-countries-0002217c-en.htm
OECD, 2024, The return of industrial policies: policy considerations in the current context
https://www.oecd-ilibrary.org/docserver/051ce36d-en.pdf?expires=1718733495&id=id&accname=guest&checksum=AA2BAB47ECE7D30398EAB61E3946BB24
Week 2
Turning points of European industrial policy: from 1957 to the European Industrial Strategy
- The legal basis for the EU intervention in industrial policy
- The role of EU institutions in industrial policy making and their interplay with the state and regional dimension
- The current ‘Renaissance’ of European industrial policy
Readings
Geoffrey Owen, Industrial policy in Europe since the Second World War: what has been learnt?
http://eprints.lse.ac.uk/41902/1/Industrial_policy_in_Europe_since_the__Second_World_War_what_has_been_learnt%28lsero%29.pdf
Week 3
The EU Single Market
- The dimension of the EU internal market
- The legal basis for internal market policies
- Court of Justice’s main decisions in the domain of internal market
- Specific policies: Internal market for goods, capitals, public procurement, services, data
- The Digital Single Market
Readings
EU Commission Communication, Long term action plan for better implementation and enforcement of single market rules
https://learn.luiss.it/pluginfile.php/1262440/mod_resource/content/1/communication-enforcement-implementation-single-market-rules_en_0.pdf
Enrico Letta, Much More than a Market (April 2024)
https://www.consilium.europa.eu/media/ny3j24sm/much-more-than-a-market-report-by-enrico-letta.pdf
Week 4
Competition policy and market regulation in the European Union
- The reasons for an antitrust legislation
- Agreements in violation of competition, abuse of dominant position
- Merger control
- State aids
- Current challenges: digital platforms, global competition and European champions
- The relationship between competition and industrial policy
Readings
EU Commission Communication, A competition policy fit for new challenges
https://ec.europa.eu/transparency/documents-register/detail?ref=COM(2021)713&lang=en
Week 5
The new European industrial strategy
- Reasons for a new Industrial Strategy
- The global context
- The European context
- Main elements of the strategy: Twin transition, Digital transition, Strategic Autonomy
Readings
European Commission Communications on Industrial strategy: 2020 and 2022
https://ec.europa.eu/info/strategy/priorities-2019-2024/europe-fit-digital-age/european-industrial-strategy_en
https://ec.europa.eu/info/strategy/priorities-2019-2024/europe-fit-digital-age/european-industrial-strategy_en
Week 6
European industry and globalisation
- Globalization and its impact on industry
- European "defensive" policies
- FDI screening and anti-subsidies rules and instruments
- Economic and research security
- Free trade agreements and the interests of the European industry
- The global playing field challenge: the crisis of WTO
Readings
EU Commission Communication, Trade Policy Review-An Open, Sustainable and Assertive Trade Policy
https://trade.ec.europa.eu/doclib/docs/2021/april/tradoc_159541.0270_EN_05.pdf
Week 7
Strategic Autonomy
- The EU Chips Act in the Semiconductor Global Tech Race
- The EU strategy in Raw Materials in the Age of Metals
Readings
Brookings Institute: How Europe aims to achieve strategic autonomy
https://www.brookings.edu/techstream/how-europe-aims-to-achieve-strategic-autonomy-for-semiconductors/
European Commission: Critical Raw Materials Resilience: Charting a Path towards greater Security and Sustainability
https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52020DC0474&from=EN
Week 8
Financial Instruments for the EU Industrial policy
- The Capital Markets Union
- Next Generation EU and the Recovery and Resilience Plan
- Cohesion policy
- The EIB Group
Readings
Communication on the Ninth Report on Cohesion
https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52024DC0149
The EIB Group operational plan https://www.eib.org/attachments/lucalli/20230378_eib_group_operational_plan_2024_en.pdf
Week 9
SMEs, Startups, creative industries in the EU Industrial strategy
- The importance of SME in the European economy
- Analysis of the SME’s strategy of 2020
- Startup Europe and VC: the initiative for startups
- Creative industries in European industrial policy
Readings
The EU SME Strategy
https://eur-lex.europa.eu/legal-content/IT/TXT/PDF/?uri=CELEX:52020DC0103
Week 10
European Parliament Simulation
(date to be confirmed)
Week 11
Skills, research, innovation
- Skilling and reskilling in the light of the twin transition: the role of education for industrial competitiveness
- The European Skills Agenda vis à vis EU main competitors’ policy choices
- The role of R&I for industrial competitiveness: the EU programs
Readings
European Commission, The European Skills Agenda for sustainable competitiveness, social fairness and resilience, 2020
https://ec.europa.eu/social/BlobServlet?docId=22832&langId=en
European Commission, Research and innovation strategy 2020-2024
https://research-and-innovation.ec.europa.eu/strategy/strategy-2020-2024_en
Week 12
Future trends of European Industrial Strategy and Implications of Member States
- The main trends of the European Industrial Policy
- The implications for the Member States: national strategies, aims, instruments, organization
Readings
Industrial policy for the 21st century
https://economy-finance.ec.europa.eu/publications/industrial-policy-21st-century-lessons-past_en
D. Di Carlo, L. Schmitz
Europe first? The rise of EU industrial policy promoting and protecting the single market https://www.tandfonline.com/doi/full/10.1080/13501763.2023.2202684