The importance of industry

‭The importance of industry‬ ‭ inding 1‬‭. French industry is struggling to recover from the crisis, partly due to the cost of‬ F ‭labor which has drifted compared to German competitors, for a given qualification.‬ ‭ inding 2‬‭. Industry is changing its nature and becoming‬‭one with services. The scope of E‬ F ‭changes with the splitting of value chains. What defines an “industrial” E is involvement in‬ ‭product design, intellectual property, and economic risk-taking. What defines “industry” is mass‬ ‭production, the achievement of economies of scale, productivity gains and the application of‬ ‭technical progress.‬ ‭Finding 3.‬‭When public authority intervenes, - risk‬‭of capture.‬ ‭Recommendation 1‬‭:rethink industry and no longer equate‬‭it only with the production of goods.‬ ‭ ecommendation 2‬‭:Invest in training and promote the‬‭mobility of resources who can‬ R ‭concentrate in growth centers.‬ ‭Recommendation 3‬‭:Fiscally favor I in R&D.‬ ‭ ecommendation 4‬‭:Aim for a balance between the needs‬‭for intellectual property protection‬ R ‭to stimulate innovation and the maximum sharing of knowledge that could be the source of‬ ‭progress.‬ ‭ ecommendation 5:‬‭IP must absolutely be part of strict‬‭governance, making it possible in‬ R ‭particular to stop projects.‬ ‭ MEs and the industrial fabric in France and Europe:‬ S ‭Weakness of the industrial fabric in France:‬‭scarcity‬‭of large SMEs and non-renewal of the‬ ‭Gdes E club‬‭. According to a CAE report: out of the‬‭1000+ global E companies, 296 US‬ ‭companies included 64 companies created from scratch after 1980 compared to 9 in Europe.‬ ‭Only 1% of E in France have more than 50 employees.‬ ‭ hould we favor SMEs? In France, SMEs ++ depend on bank financing or poor access to credit.‬ S ‭There is no need for new sources of financing because there is already plenty of public support‬ ‭and tax advantages. On the other hand, the complexity of the system and the multiple niches‬ ‭transform E into bargain hunters. The E spend a lot of resources looking in which administrative‬ ‭box they will be able to obtain public money for existing projects.‬ ‭ eforms are therefore needed to avoid the obstacles that public authorities place in the way of‬ R ‭SMEs:‬ ‭-‬‭Threshold effects‬‭:brake on the growth of E. Ex: Going‬‭from 49 to 50 employees represents 34‬ ‭additional obligations - “SME trap”‬ ‭-Extreme complexity of the L code and the tax system‬ ‭-The treatment of bankruptcies: creditors not well protected therefore not encouraged to lend to‬ ‭small E.‬ ‭ -‬‭Towards a new, more offensive European industrial policy?‬ 2 ‭a)‬‭A shift in European industrial policy:‬ ‭Renewed interest in IP since the 2000s due to the intensity of international design +‬ ‭deindustrialization and awareness of the importance of the manufacturing sector.‬ ‭2005: Commission launches better integrated IP. The approach remains horizontal, favoring above‬ ‭all the E environment. Obj = develop an eco environment that promotes competitiveness. But the‬ ‭commission adds 7 new initiatives targeting specific sectors - + sectoral and vertical approach.‬ ‭Among other things: Energy is becoming one of the essential pillars of European competitiveness.‬ ‭See above for the need for 1 new IP in France/EU.‬ ‭ )‬‭The renewal of community IP faces funding problems:‬ b ‭Funding PI Europe relies largely on national IPs. So difficult IP governance.‬ ‭Ex: Europe's desire to create an “Airbus of batteries” to free itself from Asian dependence in the‬ ‭field of electric cars. Despite support (€50M…) from the EIB, it is unable to bring together the major‬ ‭European automobile manufacturers.‬ ‭A solution to fill this gap in European IP:‬‭Project‬‭bonds‬‭-see Europe course.‬ ‭ ) Design policy and innovation policy:‬ 2 ‭1- Competition policy:‬‭see page 3 to 6‬ ‭2- Policies aimed at stimulating innovation:‬ ‭a)‬‭The innovation imperative:‬ ‭J. Tirole‬‭Economy of the common good‬‭,‭2 ‬ 016‬‭:‬ ‭Classic‬‭theory‬‭based‬‭-‬‭on‬‭accumulation‬‭of‬‭K.‬‭But‬‭from‬‭1956,‬‭Solow‬‭model‬‭highlights‬‭that‬ ‭the PT has an important place in -. The eco of the 21st century is that of knowledge.‬ ‭The‬ ‭echoes‬ ‭of‬ ‭catching‬ ‭up‬‭(30G‬ ‭in‬ ‭France)‬ ‭are‬ ‭over‬ ‭(dvlp‬ ‭in‬ ‭a‬ ‭copy).‬ ‭Imitation‬ ‭of‬ ‭foreign‬ ‭practices‬ ‭and‬ ‭techniques‬ ‭and‬ ‭accumulation‬ ‭of‬ ‭K‬ ‭are‬‭faced‬‭with‬‭diminishing‬‭returns‬‭and‬‭are‬‭no‬ ‭longer enough. Countries must advance the technological‬‭frontier‬‭.‬ ‭Institut° PDN must be specific to allow - close to the technological frontier. These institutions are:‬ ‭1)‬ ‭Universities must offer quality training, but must also do cutting-edge research and‬ ‭encourage students to entrepreneurship.‬ ‭2)‬ ‭Eco financing can no longer be limited to large companies and traditional‬ ‭SMEs, but must also offer mechanisms dedicated to the creation and financing of‬ ‭innovative companies.‬ ‭3)‬ ‭For the creative destruction inseparable from innovation to take place, markets must‬ ‭ e competitive and flexible, this is particularly the challenge for the competition authorities.‬ b ‭Among the institutions necessary for innovation,‬‭intellectual‬‭property occupies‬‭a first place.‬ ‭ )‬‭Horizontal structural innovation policies:‬ b ‭The necessary intellectual protection:‬ ‭Guarantees market power to the inventor, i.e. the possibility of profiting financially from his‬ ‭invention.‬ ‭So is the cost of intellectual property: to create an incentive for innovation, public authorities‬ ‭increase the cost of using this invention and therefore limit its diffusion - a fundamental compromise.‬ ‭Financing innovation‬‭:‬ ‭ everal stages of financing depending on the stage of growth of the E:‬ S ‭-‬‭Incubation‬‭-Public funds or aid from incubators -‬‭€20-150k‬ ‭-‬‭Priming‬‭-Business Angels and Crowdfunding - 50-500k‬ ‭-‬‭Startup‬‭-K risk - €2-10M‬ ‭-‬‭Growth‬‭-K growth - 10-100M€.‬ ‭-‬‭Exit‬‭-Resale of the E or IPO.‬ ‭France currently has 6 unicorns (startups valued at over €1M).‬