The Priorities of Industrial Policy in European Union Towards Challenges of the Global Crisis

Abstract

The current global economic crisis has challenged the neoliberal belief that in recent decadesformed the basis of views whose assumption was to minimize public interference in the economy.Thus, industrial policy has again become a subject of discussion. Despite the fact that we livein a postindustrial era in which biotechnology, information and services are identified as the sourceof economic growth, no one can ignore the manufacturing industry. It is crucial for the formation ofstructural changes in the economy and it generates new jobs. The most desirable is the active industrialpolicy which is to stimulate the growth of innovation and increase the efficiency and internationalcompetitiveness of enterprises. This approach is the essential instrument, by which the government in fluences the structural changes in the industry, giving them the desired direction and pace to help overcomethe crisis. The European experience emphasized the need to create the right framework conditionsfor a more dynamic development of the industry. The key competitive factors are human resources andmodern technologies, and consequently, efforts should be directed to the promotion of human capitalevolution and higher investment in research and development.The analysis is to identify the role, importance and trends of industrial policy in dealing with thecontemporary economic problems in the European Union. The paper presents the evolution and theessence of the today’s approach to industrial policy. Then it is discussed the trends of industrial policyin selected European countries and described the assumptions of the integrated approach to industrialpolicy in the European Union