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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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Presentation Transcript
agenda
Agenda
  • Introduction
  • Political System
  • Economic Profile
  • Industrial policies
1 introduction
1. Introduction

Belgium in Europe

introduction
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
2 political system
2. Political system
  • 1830: independence: unitary state
  • BUT: language border! => Flanders / Wallonia / Oostkantons
  • 5 state reforms
    • 3 Communities
    • 3 Regions
a structure on 3 levels
 A structure on 3 levels

Federal state

+ 3 Regions

+ 3 Communities

10 Provinces

589 Communes

competences
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!!!

3 economical profile
3. Economical profile
  • Geographical situation
  • General Economics
  • International cooperation
  • Economic problems
a geographical location
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)
b general economics
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)
import export

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
import export15
 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,…
c international cooperation
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!
d economical problems
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
d economical problems18
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)
4 industrial and innovation policies
4. Industrial and innovation policies
  • Belgian industry in general
  • Regional policy
      • Kortrijk-region --- Flanders Language Valley
      • Euregio Maas-Rhine
      • Flemish Diamond
belgian industry in general
 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)
belgian industry in general21
 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
b regional policy
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
kortrijk region flanders language valley
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
kortrijk region flanders language valley24
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
euregio maas rhine
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
flemish diamond
 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