International Compet - The Lisbon Strategy, SGH, International Competitiveness
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Course: International Competitiveness [120861-0622]
What is the Lisbon strategy background?
The Lisbon Strategy
- a way to boost competitiveness of the EU
countries
Û
We live through two revolutions: ICT and
globalization.
Û
In some ICT corporations, productivity can be
multiplied by 4 in 10 years.
Û
We need to adapt to the Information economy and
the Knowledge society
Û
This requires a lot of reforms.
Û
Structural challenges need structural answers.
Arkadiusz Kowalski, Ph.D.
e-mail: arkadiusz.kowalski@sgh.waw.pl
World Economy Research Institute
Warsaw School of Economics
EU performance 1999-2004 (US=100)
What is the Lisbon strategy ?
100
Û
THE ORIGINAL VERSION (2000): aims to make
Europe the most competitive and dynamic economy
in the worldÈ
80
60
Û
Ñturning Europe into the worldÔs most competitive and
dynamic knowledge-based economy, capable of
sustainable economic growth with more and better jobs
and greater social cohesion within 10 years,
Û
Quantifiable targets in a variety of areas (R&D,
employment etc: employment rate of 70% by 2010, R&D
3% of GDPÈ
40
86,3
90,6
80,7
81,5
92,1
87,5
64,2
64,6
1999
2004
20
0
GDP per capita
Employment rate (1)
Hours worked per worker (2) (3) Hourly labour productivity (3)
1) Calculated - Employment rate = 100 * (GDP per capita / Labour productivity per person employed)
2) Calculated - Hours worked per worker =100 * (Labour productivity per person employed / Hourly labour productivity)
3) EU15 values for Hours worked per worker and Hourly labour productivity
4) 2004: forecasts
The Lisbon Summit, March 2000
Controversy in the original version of Lisbon strategy, (2000)
Various objectives : economic, social, environmental
Many ambitions
Û
Competitiveness: liberalization and structural reform
Û
Innovation: a dynamic knowledge-based economy
Û
Sustainable economic growth
Û
Full employment: more and better jobs
Û
Greater social cohesion: fight against poverty/social exclusion,
modernization of the European Social Model
Û
Environmental sustainability
The strategy for the European Union aimed at:
Û
A transition to a knowledge-based economy by
improving policies for the information society and R&D,
pursuing structural reform for competitiveness and
completing the internal market
Û
A modernization of the European social model by
investing in people and combating social exclusion
Very little means
Û
Most policy instruments were at the national level
Û
No legal constraints
Û
No budgetary outlays
The European Union is thus responsible for things it basically
cannot control (
and about which Member States are not eager to act).
Û
Sustaining the economic outlook and favourable growth
perspective by applying an appropriate macro-economic
policy mix
International Competitiveness
Rival interpretations of the Lisbon Strategy
The Lisbon objectives widened
Û
One focused on competitiveness and innovation
¡
ÓMaking the EU the most competitive and dynamic
knowledge-based economy in the world by 2010Ô
The summits of Nice (December 2000), Stockholm
(March 2001) and Gothenburg (June 2001) added new
objectives to Lisbon
Û
The European Social Agenda: structural reform of
labour markets, job creation and measures against
social exclusion, poverty and discrimination
Û
Sustainable social protection systems (pension and
health care systems)
Û
Sustainable development Ï making the environment
LisbonÔs third pillar
Û
Another focused on new balance between social and
economic dimensions of European integration
¦
Ósocio-economic policy triangleÔ: equal weight for full
employment and social cohesion alongside
growth/competitiveness/fiscal stability as EU
objectives
¦
social protection
A re-launch of Lisbon
Brussels III (March 2005) agreed on:
Û
re-focusing priorities on economic growth and
employment by investing in innovation and knowledge
and making Europe an attractive place to invest and work
Û
improving governance by:
- making the setting of priorities clearer,
- nenhancing member statesÔ commitment (national
action programmes, a national Lisbon coordinator and
strengthen the involvement of national parliaments)
- improving monitoring by the Commission
A reinforced policy process based on an integrated 3-yearly
policy cycle based on strategic priorities and integrated policy
guidelines, followed-up by an annual Community Lisbon
programme and national reform programmes
Concentration on the Lisbon agenda:
knowledge and innovation for growth (1/3)
Û
increase and improve investment in RTD
Û
facilitate innovation and promote entrepreneurship
Û
promote the information society for all
Û
improve access to finance
Concentration on the Lisbon agenda: making Europe and
its regions a more attractive place to invest and work (2/3)
Concentration on the Lisbon agenda:
More and better jobs (3/3)
Û
expand and improve transport infrastructures
Û
attract and retain more people in employment and
modernise social protection systems
Û
improve the environmental contribution to growth
and jobs
Û
improve adaptability of workers and enterprises and
the flexibility of the labour market
Û
address the intensive use of traditional energy
sources
Û
increase investment in human capital through better
education and skills
Û
administrative capacity
Û
health of the labour force
International Competitiveness
The comparison of Lisbon strategy, revised
version (2005) and original version (2000)
Cohesion Policy and Lisbon Strategy (1/3)
The European Council of march 2005 underlined:
The Lisbon strategy, revised version (2005):
Û
the need to re-launch the Lisbon Strategy:
"The Union must mobilise all appropriate national and
Community resources-including cohesion policy".
Û
Less objectives : âpriority to the economy,
no more social and environmental objectivesÒ
Û
Less coordination : âno name and shame of the
Member States by the CommissionÒ
Û
the necessity to involve regional and local actors in order
to achieve the Lisbon objectives, especially in areas where
proximity matters such as:
Û
Less appropriation by the EU : âMember States must
feel more responsibleÒ
- innovation and the knowledge economy,
- entrepreneurship,
..È but then, what is now the added value of an European
approach?
- support for SMEs.
Cohesion Policy and Lisbon Strategy (2/3)
Cohesion Policy and Lisbon Strategy (3/3)
Cohesion guidelines 2007-2013: in line with the Lisbon
strategy
Û
COHESION POLICY
Û
LISBON AGENDA
Û
Cohesion policy should focus to a greater extend on:
-knowledge,
- research and innovation
- human capital.
Community Strategic
Guidelines
Û
Integrated
Guidelines
Û
National Strategies
(NSRFs)
Û
National Reform
Programmes
Û
Accordingly, financial effort in support of these fields should
be significantly increased.
Û
National and
Regional programmes
Û
Annual Progress
Report
Innovation process and regions (1/2)
Innovation process and regions (2/2)
Û
The overall innovation performance of an economy depends
not only on how firms and research institutes perform, but
also how they interact with each other.
Û
Innovation is the result of frequent interactions between
people, firms, organisations whose knowledge and know-
how are strengthened reciprocally and accumulate.
Û
Innovation is most effectively addressed at regional level,
as physical proximity fosters the partnerships between
actors in both public and private sectors.
Û
Proximity between different actors makes it easier for them
to create, acquire, accumulate and utilise knowledge faster
than firms outside of knowledge intensive, dynamic regional
systems of innovation.
Û
The formation of regional clusters is often the key to
the successful promotion of research, technological
development and innovation.
Û
The capacity of regional decision makers and
entrepreneurs to turn knowledge, skills and
competencies into sustainable competitive advantage is
crucial to regions' economic performance.
Û
However, European regions vary considerably in
their capacity to absorb and develop knowledge and
technology => cohesion policy.
International Competitiveness
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