Making industrial policy in Europe more place-based.
Date: 2023-10-12
Institutions: Commission for Economic Policy
Subjects: EU Member State, EU regional policy, European undertaking, business model, circular economy, competitiveness, economic transition, industrial policy, innovation, opinion (EU), reduction of gas emissions, regional and local authorities, sustainable development

Commission for
 Economic Policy

Making Industrial 
Policy in Europe 
more Place-Based

N
O
C
E

Opinion of the European Committee of the Regions 
on A place-based approach to EU industrial policy

Rapporteur: Jeannette Baljeu (NL/RE), Regional Minister in the Province of Zuid-Holland.

The opinion

 ´ was adopted at the CoR Plenary Session by unanimity on 26 June 2019

 ´ calls  for  a  coordinated  European  approach  to  ensure  that  European  industry  remains 

innovative and competitive. 

 ´ stresses the key role of regional and local authorities in establishing large-scale industrial 
cooperation  that  goes  beyond  ad-hoc  initiatives  and  contributes  to  strengthening 
European  value  chains.  Overall,  a  more  holistic,  multi-sectoral  approach  should  be 
adopted that seeks to identify and harness local strengths and capabilities.

 ´ underlines  that  the  transition  of  companies  to  more  sustainable  and  resource-efficient 
business models will both help the environment and provide competitive advantage. The 
place-based approach can contribute to a low carbon and circular economy that is a driver of 
innovation and new business and employment opportunities in a regional and local context.

“A place-based approach for European Industry is crucial if we want 

to remain competitive and face challenges such as the transition to a 
zero-carbon and digital economy. Therefore, we need to strengthen 
regional and local eco-systems by cooperating in the whole value chain 
and connecting these eco-systems throughout 
all European regions. Cooperation of local and 
regional stakeholders is key in this as we all 
face these challenges. We can learn from each 
other and grow the European industry in a 
sustainable way to a stronger, more innovative 
and competitive European Union. 
Jeannette Baljeu (NL/RE), Regional Minister in 

the Province of Zuid-Holland, CoR Rapporteur

Engaging in the Institutional Policy Process

Informal Competitiveness Council

Under  successive  Presidencies,  the  CoR 
has  participated  in  Informal  Meetings  of 
Ministers  responsible  for  Competitiveness 
(Internal Market and Industry) and has had 
the  opportunity  to  contribute  a  territorial 
perspective 
the  Council’s  ongoing 
work  on  developing  an  overall  strategic 
policy  framework  for  European  industry. 

to 

Industry 2030 Roundtable

The  report  of  the  European  Commission’s 
high-level group on the future of European 
industry,  published  on  26  June  2019, 
outlines  a  vision  for  a  European  industry 
that  leads  on  the  global  stage  for  the 
benefit of society, the environment and the 
economy alike.

Chaired  by  Vice  President  Jurki  Katainen, 
the high-level group recommends specific 
policy actions towards a long-term industrial 
strategy.  The  report  proposes  that  the 
success of Europe’s industrial transformation 
should  build  on  adopting  breakthrough 
innovations,  addressing  climate  change 
and  focusing  on  the  people  and  values 
that make Europe a role model for the rest 
of the world.  It also recommends specific 
measures  for  innovation  and  technology 
take-up, the transition to a climate-neutral 
industry,  strengthening  Europe’s  global 
competitiveness  and  focusing  on  people 
and skills.

The  rapporteur,  Jeannette  Baljeu,  with  Niculae 
Bădălău, Minister of Economy in the Government 
of Romania, at the Informal COMPET in Bucharest 
on 3 May 2019

requires  a  vision 

As  the  CoR’s  permanent  observer  on  the 
roundtable,  Jeannette  Baljeu  contributed 
regional  perspective, 
the 
local  and 
emphasising  that  the 
industrial  model 
should create value in all European regions, 
which 
for  territorial 
inclusiveness.  As  key  drivers  of  innovation, 
including for SMEs, well-functioning place-
based ecosystems and clusters need to be 
generalised  throughout  Europe’s  regions. 
The CoR also advocated a more place-based 
approach to skills policy.  It also underlined 
how  regional  and  local  authorities  can 
contribute  to  realising  the  economic  and 
business  potential  of  a  low  carbon  and 
circular  economy,  and  advocated  that  the 
vision  for  European  industry  until  2030 
should  be  aligned  with  the  Sustainable 
Europe  2030  Strategy,  in  which  regions 
have  a  key  role.  Regions  are  leading  on 
a  territorial  approach  to  SDGs:  the  OECD 
finds that 65% of SDGs cannot be reached 
without regions and cities. 

 
 
Gross value added at basic prices, 2017 data

NUTS 3 regions

Gross value added at basic prices, 2017 data

NUTS 3 regions

Canarias (ES)

Guadeloupe (FR)

Canarias (ES)

Guadeloupe (FR)

0 100

0

25

Martinique (FR)

Guyane (FR)

0 100

0

25

Martinique (FR)

Guyane (FR)

0

20

0 100

Analytical work

Gross value added at basic prices, 2017 data
NUTS 3 regions

CoR studies on industry

Gross value added at basic prices, 2017 data
NUTS 3 regions

Canarias (ES)

Guadeloupe (FR)

0 100

0

25

Martinique (FR)

Guyane (FR)

0

20

0 100

Réunion (FR)

Mayotte (FR)

0

20

Malta

0

15

Açores (PT)

0

10

0 50

Madeira (PT)

Liechtenstein
Liechtenstein
Liechtenstein
Liechtenstein
Liechtenstein

0

20

0

5

Canarias (ES)

Guadeloupe (FR)

0 100

0

25

Martinique (FR)

Guyane (FR)

0

20

0 100

Réunion (FR)

Mayotte (FR)

0

20

Malta

0

15

Açores (PT)

0

10

0 50

Madeira (PT)

Liechtenstein
Liechtenstein
Liechtenstein
Liechtenstein
Liechtenstein

0

20

0

5

millions in euros

millions in euros

Administrative boundaries: © EuroGeographics © UN–FAO © Turkstat
Cartography: Eurostat – IMAGE, 09/2019

Ratio industry over all total

Territorial Impact Assessment 
Workshop on EU Industrial 
policy strategy (March 2019)

Réunion (FR)

Réunion (FR)

Mayotte (FR)

0 100

20

20

0

0

Mayotte (FR)

Malta

Açores (PT)

0

15

Some enabling factors for a successful 
industrial strategy at European scale

Açores (PT)

Malta

20

15

10

0

0

0

0 50

 ´ Education and skills 

10

0

Madeira (PT)

Liechtenstein
Liechtenstein
Liechtenstein
Liechtenstein
Liechtenstein

0 50

Madeira (PT)

Liechtenstein
Liechtenstein
Liechtenstein
Liechtenstein
Liechtenstein

 ´ Cybersecurity and protection of 

0

20

0

5

industrial know-how

0

20

0

5

 ´ Digitalisation 

 ´ Research and Development

 ´ Clusters – dynamic geographic 

Administrative boundaries: © EuroGeographics © UN–FAO © Turkstat
Cartography: Eurostat – IMAGE, 09/2019

concentrations of inter-connected 
firms and related innovation actors 

Ratio industry over all total

millions in euros

millions in euros

Ratio industry over all total

0

200

400

600

800 km

Administrative boundaries: © EuroGeographics © UN–FAO © Turkstat
Cartography: Eurostat – IMAGE, 09/2019

< 0.199

0.200 – < 0.399

Administrative boundaries: © EuroGeographics © UN–FAO © Turkstat
Cartography: Eurostat – IMAGE, 09/2019

800 km

200

400

600

0

 ´ Quality and stability of legal standards 

< 0.199

0.200 – < 0.399

0.400 – < 0.599

0.600 – < 0.799

>= 0.800

map edited by CoR, cdr_map_019
Data source: Eurostat

< 0.199

Ratio industry over all total

0

200

400

0.200 – < 0.399

0.400 – < 0.599

0.600 – < 0.799

>= 0.800

< 0.199

0.200 – < 0.399

0.400 – < 0.599

0.600 – < 0.799

600

800 km

0.400 – < 0.599

0.600 – < 0.799

>= 0.800

map edited by CoR, cdr_map_019
Data source: Eurostat

Gross value added at basic prices, 2016 data

>= 0.800

map edited by CoR, cdr_map_019
Data source: Eurostat

map edited by CoR, cdr_map_019
Data source: Eurostat

“A bottom-up approach is 

needed: industrial strategy must 
be place-based and tailored 
to different contexts and local 
areas. A purely centralised 
approach will not work. 
Establishing connections and 
networks between places will 
also be crucial, as will effective 
communication, particularly 
when it comes to measures that 
may hurt some stakeholders.  
Alexander Lembcke, OECD

0

200

400

for competition and state aid 

600

800 km

 ´ Supportive public policies in the 

field of economic and interregional 
cooperation.

There is no “one-size-fits-all” 
approach to industrial policy

Industrial  policy’s  role  is  to  provide 
an  enabling  framework  that  allows 
industry,  particularly  manufacturing, 
to  invest  and  develop,  combining 
a  mixture  of  horizontal  and  cross- 
sectoral  approaches.  It  should  take 
account  of  key  thematic  challenges, 
such as those related to digitalisation 
Industry  4.0,  and  also 
and 
the 
overarching 
challenges 
societal 
arising  from  demographic  ageing, 
immigration,  climate  change  and 
environmental pressures.

Place-Based Policy

contrast 

to  more 

In 
traditional 
approaches  to  regional  development, 
which  focus  mainly  on  compensating 
the  place-based 
for  disadvantage, 
approach  emphasises 
the 
tackling 
root  causes  of  problems.  It  requires 
governments  to  focus  more  on  the 
local  and 
to 
differentiate  between  territories  and 
take  into  account  their  specific  assets 
It  also  underlines  the 
and  needs. 
need  to  empower  regional  and  local 
stakeholders  to  influence  and  shape 
the policies that affect them.

regional  dimensions, 

Place 
based

Low 
carbon

Circular

Circular economy is a sound and innovative place-based 
approach to industrial development ensuring lower use 
of energy and greenhouse gas emissions reduction.

Zuid-Holland has a strong regional innovation ecosystem: excellent 
knowledge  infrastructure  (ranging  from  intermediate  vocational 
education to three universities), economic clusters of international 
significance, and cooperating governments at all levels that work 
to  strengthen  the  regional  economy.  It  is  renowned  as  a  real-life 
testing  ground  in  which  field  labs  test  solutions  to  European 
societal  challenges.  A  vital  network  of  Field  Labs,  cooperating 
cross-border,  cross-sector  and  cross-fund,  plays  a  key  role  in  the 
region’s transformation into a Next Economy region.

Created in 1994 following the signing of the Maastricht Treaty, the European Committee of  the Regions is the 

EU's  assembly  of  350  regional  and  local  representatives  from  all  28  Member  States,  representing  over 

507 million Europeans.

Rue Belliard/Belliardstraat 101   |   1040 Bruxelles/Brussel   |   BELGIQUE/BELGIË   |   Tel. +32 22822211

www.cor.europa.eu   |         @EU_CoR   |         /european.committee.of.the.regions   |         /european-committee-of-the-regions

Where to ﬁnd further information?

  Commission for Economic Policy (ECON)

https://cor.europa.eu/en/our-work/Pages/econ.aspx 

  CoR opinion on A place-based approach to EU industrial policy  

(adopted on 26 June 2019)
https://cor.europa.eu/EN/our-work/Pages/OpinionTimeline.aspx?opId=CDR-5941-2018 

  Meetings of the Council’s Competitiveness Council

https://www.consilium.europa.eu/en/topics/enterprise-industry/ 

  Industry 2030 High-Level Roundtable

https://ec.europa.eu/growth/industry/policy/industry-2030_en 

  2017 study on the Future of industry in Europe

https://cor.europa.eu/en/engage/studies/Documents/The%20future%20of%20
industry%20in%20Europe/future-of-industry.pdf 

  2019 study on Implementing a place-based approach 

to EU industrial policy strategy
https://cor.europa.eu/en/engage/studies/Documents/CoR_Industry.pdf

  2019 Territorial Impact Assessment on industry

https://cor.europa.eu/en/our-work/Pages/Territorial-Impact-
Assessment.aspx 

  OECD – industry and entrepreneurship

https://www.oecd.org/industry/

Catalogue N°: QG-02-23-079-EN-N
ISBN: 978-92-895-2968-6
Doi: 10.2863/326299

© European Union, 2019

Created in 1994 following the signing of the Maastricht Treaty, the European Committee of  the Regions is the 
EU's  assembly  of  350  regional  and  local  representatives  from  all  28  Member  States,  representing  over 
507 million Europeans.

Rue Belliard/Belliardstraat 101   |  
www.cor.europa.eu   |         @EU_CoR   |         /european.committee.of.the.regions   |         /european-committee-of-the-regions

|   BELGIQUE/BELGIË   |