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Industrial & Innovation Policy. BELGIUM. Belgium. Agenda. Introduction Political System Economic Profile Industrial policies. 1. Introduction. Belgium in Europe.  Introduction. Situated in the centre of Western Europe Very small: ca. 32.500 km² Population: ca. 10.000.000

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Industrial & Innovation Policy

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Industrial & Innovation Policy

BELGIUM


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Belgium


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Agenda

  • Introduction

  • Political System

  • Economic Profile

  • Industrial policies


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1. Introduction

Belgium in Europe


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Introduction

  • Situated in the centre of Western Europe

  • Very small: ca.32.500 km²

  • Population: ca.10.000.000

  • Capital: Brussels

  • Neighbours: The Netherlands, Germany, France, Luxembourg & UK


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2. Political system

  • 1830: independence: unitary state

  • BUT: language border! => Flanders / Wallonia / Oostkantons

  • 5 state reforms

    • 3 Communities

    • 3 Regions


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 Communities & Regions


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 A structure on 3 levels

Federal state

+ 3 Regions

+ 3 Communities

10 Provinces

589 Communes


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Competences

  • Federal state:

    • Everything that affects the interests of all belgians: foreign affairs, national defence, justice, finance,…

    • Responsabilities vis-à-vis the EU and NATO

  • Communities:

    • Matters relating to the people: language, culture, education,…

  • Regions:

    • Territorial matters: town planning, employment, environment,…

    • Foreign trade!!

 Problems!!!


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3. Economical profile

  • Geographical situation

  • General Economics

  • International cooperation

  • Economic problems


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a) Geographical location

  • Lack of mountains + border to North Sea

  • In the centre of the «industrial square»:Ruhr -- Randstad Holland -- Nord-Pas de Calais -- Lorraine-Saarland

  • in the centre of European ”megalopolis” , a major urban and economic corridor (Liverpool – Genua)


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b) General economics

  • real economic grotwh 2003: 1,0%

  • inflation 2003: 1,3%

  • GDP per capita: > 13% => relative wealth

  • revenue per worker: 62.560 € (20% higher than EU average)


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GDP in Belgium


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Belgium

EU average

Export (% of GDP)

76,5 %

32,2 %

Import (% of GDP)

72,9 %

31,0 %

 Import & Export

  • 50% of export: neighbours

  • 25% of export: other EU members

  • Foreign investment!

  • Ups and downs of economy –-- fluctuations of our neigbours


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 Import & Export

  • 40% of export: 3 large groups

    • Transport equipment

    • Machinery & appliances

    • Chemical & pharmaceutical products

  • Other 60%: large variety

    • Diamonds, carpets, comic books & childrens books, linen, flowers (azalea & begonia), beer, chocolate,…


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c) International cooperation

  • prosperity = dependent on external trade => active part in intern. cooperation

  • BLEU

  • Benelux (+ Benelux Trademark Office)

  • One of the 6 founder countries of ECSC, EEC & Eurotam

  • pro european unification!


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d) Economical problems

  • Unemployement

    • 14 % of active population

    • High wage cost, high labour cost, structural problems of Labour market

    • 200.000 new jobs <-> - 4.000 Ford

  • Administrative burden

    • Costs for administrative tasks: 3,4% of GDP

    • Lack of entrepreneurship!

    • ”state secretary of administrative simplification”

  • Government deficit

  • Welfare state


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d) Economical problems

  • Government deficit

    • Extreme until 1993

    • Draconian rehabilitation plans

    • government debt/GDP ratio: 110.6%

  • Administrative burden

    • Costs for administrative tasks: 3,4% of the GDP (around 9 billion €)

    • Lack of entrepreneurship!

    • ”state secretary of administrative simplification”

  • Welfare state

    • Ageing populiton => not engough money to pay pensions

    • ”Early retirement” at 55 (even 50)


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4. Industrial and innovation policies

  • Belgian industry in general

  • Regional policy

    • Kortrijk-region --- Flanders Language Valley

    • Euregio Maas-Rhine

    • Flemish Diamond


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 Belgian industry in general

  • Industrial sector:

    • 1/4e of all jobs

    • 30% of added value

  • Major regional contrasts

    • North: industrialised

      • Antwerp: chemical sectors

      • Ghent, Zeebrugge, Brussels

      • Central Flanders, Kortrijk-region, North-east

    • South: not industrialised at all (anymore)


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     Belgian industry in general

    • De-industrialisation & Teriarisation

      • structure of industrial activity has changed a lot

      • De-industrialisation since 50s:

        • 1957-1992: all 120 coalmines have been shut down (in Flanders)

        • Production of steel (Wallonia) almost entirely stopped

      • decline in jobs compensated by development in tertiary sector


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    b) Regional policy

    • Complex structure + different cultures => no single industrial policy

    • Stimulation of regional development within different Communities & Regions

      • Wallonia: after decline of steel production: ??

      • Flanders: certain regions developed

        • 70s – 80s: Euregio Maas-Rhine

        • Early 90s: Kortrijk-region

        • Late 90s: Flemish Diamond


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    Kortrijk-region –Flanders Language Valley

    • Light industries, SMEs, local management

    • Part: ”Flanders Language Valley” (speech tech)

    • Cluster of localised technological change

    • After Sillicon Valley-model: strong pilote firm, venture capital, education, informal networking

    • L&H research lab: a common source of codified knowledge

    • Fast entrepreneurial reaction => developing broad range of applications

    • Favourable communication conditions  innovative linkages between SMEs


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    Kortrijk-region –Flanders Language Valley

    • Companies: mutual advantage:

      • learn form each other

      • Using common pools of resources in proximity

        • E.g. employees in ”collective pools of labour” created by several education and training programmes

    • But: owners of L&H: FRAUDE !

      • Big scandal

      • Technology sold to Americans

      • FLV collapsed


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    Euregio Maas-Rhine


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    Euregio Maas - Rhine

    • Norhteast of Flanders, near Holland & Germany, near Maas and Rhine rivers

    • Lagging region without industries

    • 70s: development started, because in “New” Europe cross-border cooperation at local and regional level was becoming more important

    • Agreement with Holland & Germany

    • Large foreign companies ( <-> SMEs in FLV)

    • Benefited from large amount of labour force


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     Flemish Diamond

    • Region in centre of Flanders,Antwerp – Ghent – Brussels – Leuven

    • Urban network on international level

    • Industrial economy => knowledge economy

    • Knowledge = critical succes factor for the future

    • Well-functioning urban network, modern infrastructure to transport goods and person are necessary

    • Growth of Flanders depend on development of this diamond


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    --Wim Dooms -- 29-10-2003--


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