The realities of EU industrial policies analysed through automotive value chain dynamics

Megyeri, Eszter, Pelle, Anita and Tabajdi, Gabriella (2023) The realities of EU industrial policies analysed through automotive value chain dynamics. Society and Economy, 45 (3). pp. 250-269. DOI

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Processes in the past decades have resulted in the segmentation of European industries into ‘headquarter’ and ‘factory’ economies, though these categories are not fully distinct. ‘Headquarter’ economies typically host the higher value added activities and service units while ‘factory’ economies are popular locations for lower segments of the value chains. This setup has implications for EU level industrial policy strategies. In the current times of accelerating technological development and the ever growing servitisation of industries, ‘headquarter’ economies genuinely have better capabilities and resources to gain more share of the value added, and can actually steer the course of events in the sector. In the EU peripheries, new investment often covers relocation of previous technologies and retired assets of original equipment manufacturers (OEMs). The ‘factory’ economies are in a disadvantage in several aspects, while the headquarters optimise according to their own set of strategic preferences, which further compromises the opportunities of industrial actors in the peripheries to shape their own future. Industrial policies, however smart and well designed, have limited chances to influence the character and speed of changes. We review reported cases through which we test literature and contrast realities with aspirations regarding smart and sustainable industrial development across the EU.

Item Type:Article
Uncontrolled Keywords:globalvaluechains(GVCs),EuropeanUnion(EU),industrialpolicy,automotiveindustry
JEL classification:F02 - International Economic Order
L62 - Automobiles, Other Transportation Equipment, Related Parts and Equipment
O25 - Industrial Policy
International economics
ID Code:8919
Deposited By: Veronika Vitéz
Deposited On:22 Sep 2023 08:36
Last Modified:22 Sep 2023 09:32

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