The main panel discussion at the European Manufacturing Conference 2024, led by EFFRA’s Željko Pazin, provided a deep insight into the core challenges, opportunities, and strategies for strengthening Europe’s competitiveness, industrial base, and manufacturing sector that lie ahead. It was often tough to hear but the speakers were able to focus on addressing things with a long-term view for fostering innovation, overcoming bureaucratic inefficiencies, and fostering international cooperation and talent development, so the tough listen was all worthwhile.
The key themes revolved around innovation, speed of implementation, global market relevance, internationalisation, education, and the structural challenges facing European industries. The panellists agreed that these factors are pivotal to ensuring Europe’s future competitiveness, economic strength, and industrial sustainability.
Innovation, competitiveness, and bureaucratic challenges
The dialogue began with discussion about the need for Europe to overcome its self-referential mindset and address its competitiveness on a global scale. Innovation and the speed of implementing research outcomes into the market were highlighted as key pillars, but the gap between Europe’s ambitions and the realities of bureaucratic inefficiencies remains a major stumbling block. There is a long-term strategy missing from existing policies, and Europe must adopt a forward-looking approach, especially concerning technological advancements.
The example of patent filings was raised to illustrate Europe’s slower pace compared to China. While Europe files more traditional patents, China is rapidly expanding in international patents through the PCT (Patent Cooperation Treaty), showcasing its global market ambitions. The need for Europe to catch up in deep tech and high-risk innovation was underlined, particularly with suggestions for establishing a European Stock Exchange dedicated to deep tech.
The complexity of having 27 different regulations across EU member states was addressed as another major barrier for SMEs trying to internationalise. Simplifying these legal frameworks through initiatives like a unified European “28th regime” was recommended to create a more competitive internal market.
International cooperation and education
The second part of the discussion highlighted the critical need for internationalisation, both within Europe and beyond. The importance of fostering stronger ties among European universities, industries, and international partners like the United States, China, and Japan was emphasised. International cooperation was seen as “non-negotiable”, with particular attention on the role of higher education in nurturing future talent.
While existing programmes like Horizon and Erasmus Plus were praised by all speakers for fostering collaboration, it was also noted that Europe needs to do more to simplify and enhance these frameworks. Cross-border cooperation was viewed as essential, not only for education but also for industrial success. Discussion raged on how European universities must evolve their curriculums to meet the demands of the rapidly changing manufacturing landscape, ensuring students are equipped with the necessary skills for the future workforce. It was agreed that this is a must.
The panellists agreed that educational initiatives should focus on not just technological training but also entrepreneurial thinking, preparing students for leadership in innovation and competitive markets. Talent retention and skilling/reskilling existing workers in new technologies were also critical elements of Europe’s strategy to remain competitive in manufacturing.
The critical role of manufacturing and industrial sustainability
Manufacturing is the backbone of Europe’s economy and there was consensus that the deindustrialisation of Europe would mark the end of its economic strength, with disastrous consequences for employment and social stability. The need for Europe to retain its production capabilities was highlighted, with a focus on maintaining jobs and sustaining communities that rely on manufacturing.
Speakers touched on the significance of better marketing the importance of production technologies, both to policymakers and the general public. The manufacturing industry, often seen as traditional and outdated, needs to change its image to attract young talent and engage with modern trends like sustainability and digitalisation.
Furthermore, diversity in the workforce was discussed as a key to innovation and progress. Women and underrepresented groups are currently vastly underrepresented in manufacturing, and improving diversity would not only make the sector more inclusive but also more innovative.
Finally, the participants concluded with a call for a faster transition from research to market. Initiatives like the collaboration between Made in Europe and EIT Manufacturing were praised for their efforts to connect disruptive innovators with major industry players, fostering rapid market implementation of new technologies.
Summary of the recommendations made throughout the discussion
Long-term industrial strategy:
Europe needs to adopt a cohesive, long-term industrial strategy that focuses on competitiveness, innovation, and speed. This must include fostering technological innovation and supporting high-risk, high-reward deep tech ventures. The creation of a European Stock Exchange for deep tech was recommended.
Simplification of regulatory frameworks:
The 27 different regulations across EU member states should be simplified through initiatives like the proposed “28th regime” to facilitate cross-border business activities, particularly for SMEs. This would lower the barriers for companies looking to scale across Europe.
Fostering international cooperation:
Stronger ties between European and global institutions (universities, industries, and governments) are essential. Programmes like Horizon Europe and Erasmus+ should be further developed and simplified to enhance cross-border collaborations, especially in research, education, and industrial development.
Education and skills development:
Universities should be encouraged to evolve their curriculums to meet the demands of the new industrial landscape, focusing not only on technology but also on entrepreneurial skills. More initiatives to train and reskill the current workforce in areas like deep tech and advanced manufacturing should be launched.
Attracting young talent into manufacturing through better marketing and showcasing the exciting prospects of the industry is essential.
Increased diversity and inclusion:
The manufacturing sector should prioritise diversity to foster innovation. Programmes aimed at increasing the representation of women and underrepresented groups in manufacturing should be launched.
Faster transition from research to market:
Programmes like Made in Europe and EIT Manufacturing should be expanded, with a focus on connecting disruptive start-ups with larger industry players to ensure faster commercialisation of new technologies. The proposed fast-track circular economy project is an example of the type of initiatives needed.
Strengthening the image of manufacturing:
The manufacturing sector needs to improve its public image, marketing itself as a dynamic, innovative, and essential industry for Europe’s future. This would not only attract talent but also increase public and political support.
Energy costs and industrial sustainability:
High energy costs in Europe were flagged as a major challenge for maintaining a competitive manufacturing base. Policies that address energy efficiency, sustainability, and cost reduction are critical to maintaining Europe’s manufacturing strength in the global market.
Conclusion
The discussions highlighted that Europe’s competitiveness and industrial sustainability hinge on its ability to innovate, internationalise, and support a strong manufacturing sector. Education, regulation, diversity, and the transition from research to market were underscored as critical areas of focus. Without a unified long-term strategy and the right policies in place, Europe risks falling behind on the global stage. The time to act is now, with a concerted effort required from all stakeholders – industries, governments, and educational institutions alike – and the audience seemed to agree and left with a sense of determination for the work ahead.
THE PANEL
MODERATOR
Željko Pazin, Executive Director at EFFRA
PANELLISTS
Nichola Deliyanakis, DG RTD, Policy Coordinator – Work Programme Sherpa
Maurizio Gattiglio, Chairman at ManyFuture ETP
Olaf Pannenbäcker, Chairman, EFFRA
Caroline VIAROUGE, CEO, EIT Manufacturing