Good morning. In this presentation, in this session
we are going to review the evolution of European industry digitization
in recent years and we are going to learn about the plans that
the European Commission propose for its promotion. My name is Julio
Navío and I am the director of the Jean Monnet chair for
digital economy in the European Union, granted to the UNED.
Digitization is transforming the industry in
Europe. It is interesting, therefore, to delve into the
subject and in its evolution and future prospects.
We will present some slides, In many cases in English
To be useful for our students in English,
and with the explanation that we propose, everybody can follow it
perfectly also in Spanish.
The industry in Europe is an extremely important
economic engine. We are talking about 35 million jobs, and
more than 20% of the economic added value generated in the
European Union comes from the
industry. We're also observing that it is
subjected to a great transformation, to a great
change.
It is evolving from a industry mainly of
products, to an industry of services; and also
the technologies are impacting and profoundly transforming the
industry in Europe.; We are talking about the advent of
the internet of things. IoT. This means
to increase sensorization and automation of
processes and industrial systems. We are talking about
he arrival also of the artificial intelligence that
means a better maintenance due to the information provided,
so that there can be defined predictive processes, avoiding
bugs and errors and improving the efficiency of our factories.
Therefore, in this
deep transformation, the digital future opens a
relevant opportunity that is related to the location,
the placement of the industry; so far many
sectors have migrated their manufacturing activity, its production
and industrial activities to other countries, looking for better
efficiencies and better economic returns.
This digital transformation can be an opportunity for Europe,
to relocate, to place again our
Industry in Europe, boosting also the European economy.
We are also talking about a focus on circular economy where
the reuse of waste can also generate
benefits and a better optimization, or better use, of
natural resources. In this context, in 2020,
The European Commission presented its new strategy to promote
Europe's leadership in the industrial field, putting
special emphasis in two transitions; the digital one
and the climate transition.
Furthermore, the President of the European Commission,
Ursula de la Leyen
stated that being the industry such an engine
for growth and prosperity, it is important that
Europe embarks on this transformation and in this
digital and ecological change,
in climate transition, to revitalize and reboot our industry.
In this sense, the strategy launched by the European Commission in
the year 2020, to boost the industry,
It is based on 3 principles, the two transitions:
climate and digital,
and the objective of boosting European competitiveness.
Regarding climate transition, the European green deal,
the European green agreement is wide a commitment
with the environment because it states
that our continent, Europe, the
European Union, will be the first
continent climatically neutral in the year 2050,
In other words, the European Union can be an example to be followed by
other countries, other continents, other regions in the leadership
to climate transition and to commit to be greener and
more sustainable ecologically. Second, the digital transition
that concerns our companies
entrepreneurs, and all of our industries which have to
transform to get the benefits of
digital transformation, all economic actors have
to be proactive not only in the economic field, but also
in the social aspects, preparing and training the staff in the
digital skills, so necessary for all.
Third, the
global competitiveness. The commission argues that the
European environment has the suitable conditions for
this industrial transition impulse, but also that
it is needed to reinforce Europe's leadership in
this aspect, also promoting its influence on
setting standards, global standards, that set the rules
in this competitive evolution to the new industry.
Specifying a little more, we can say that the fundamental pillars
of this industrial transformation for
Europe are: First, deepening In the single digital market. As
the first pillar, we are talking about the
single digital-driven market launched by 2015 that represents a
opportunity for cohesion, for integration in Europe, and
also for strengthening facing the outside markets, and
this implies different actions
such as: The boost to the small y medium-sized companies (SMEs), a plan
of intellectual property, different initiatives to
optimize the aid that the European Commission gives to
the member states for strengthen the digital single market.
Also to advance in the data strategy, ie.
In boosting the data-driven economy: Data is becoming
more available and it is a source of wealth and
of knowledge to improve procedures and economic models,
and, finally, also an act of digital services
Second pillar, the Commission requests and promotes rules in
the global transactions. Common and global for all actors.
To have, in the international interaction,
some adequate working rules established and common for all, in
the international framework.
We are also talking about improving adequately the
access to public procurement by foreign capital,
also about agreements and collaborations with the
World Trade Organization,
To work on related issues with the customs unions.
Third pillar: to give support to the transition
of the industries to climate neutrality. We're
speaking of less waste, less ecological impact of
emissions from European industries, we are talking about
promotion of a trans-European network
of energy. Also to work in climate performance
of concrete industries, for example,
chemical industry, and the promotion of renewable energies or
also the transition of regions that are still
intensive in carbon emissions,
We have to go deep into everything related
to the reduction in emissions and greater respect to the
environment. Also in this line:
To reinforce smart mobility and, in general, the introduction
of the Smart concept: use of intelligence and optimization
through technologies be more conscious in the in
the climate field.
Furthermore, the Commission intends build more on
circular economy, that is, reduce waste, but
also encourage involvement of
citizens in the different aspects of circular economy and also
in some sectors that are especially susceptible to
this impulse. We're speaking, for example, of
initiatives that have already been implemented in Europe: on batteries or on
the textile sector.
Furthermore
the commission intends to promote the spirit of innovation at
all levels, and we are talking about boosting
public private collaborations, to help create an environment
where innovation is a
catalyst in the industrial transformation.
Not in vain, the new innovation, research
and development program
named Horizon Europe is the most important and better financed
any time in history of the European Union.
Additionally, The EU must promote training and digital capacitation
the skills of the professionals, not only for
new professionals, but also reskilling for
all professionals to be ready for the digital challenge
of industrial transformation.
In this area the Commission plans an education plan,
a pact of competences, of training
of the different actors and also, a deeper gender commitment.
Finally, the
last pillar would be a reinforcement in investment and
funding for the industrial transition.
The European Commission is putting special emphasis
on this matter, starting different pilots in different regions
to understand
which are the best ways to activate and finance the
industrial transition.
In this line, the Commission is already starting some
initiatives, but some others
especially noteworthy and that the Commission considers of special
value, are the whole issue of transformation of
energy intensive industries for get savings, to foster the
climate neutrality as soon as possible possible, the competences of the
industry, the promotion of
advanced technologies. The new technologies
are having a huge impact, as already mentioned.
Having clear effects on industrial transition. Let's think on
those automations allowed by the arrival of
internet of things, and the connectivity, to improve
processes and infrastructures, and the best use of the
data, as source of efficiency, also through
the artificial intelligence
and innovation.
The development of clusters for The generation of ecosystems of
collaboration that promotes certain sectors that can
collaborate with each other and can help revitalize the economy
from the different regions, collaborating and generating
A working industrial ecosystem. Finally the Commission
also supports many promotional activities,
diffusion, impulse and knowledge, creating
awareness.
Awareness about this issue through initiatives
like the days of Industry at European level.
Being more concrete, specifically, on issues
of digitization, it is very relevant
the approach that the European Commission takes regarding the
European industry digitization. The Union adopted different
initiatives since 2016 to drive this
digitization. It is based on 4 aspects, in
first place, the hubs of digital innovation.
A hub is a space, a place, where different companies, in
concrete and especially the small and medium businesses,
get in touch with each other and also obtain resources and
training to
achieve their goals. We're
talking about help to improve its processes, its
business models, etcetera. In general, hubs are always linked
to some kind of institution or center of competence; it can be
a university department, an innovation center or
technology center that helps them
In their business. Not in vain
the term “hub” is normally used in technology
in digital subjects, as a space that
agglutinates, concentrates and
put in common different elements in this case generating economic benefits
for the participants. Particularly SMEs
can benefit from those digital innovation that
promotes the. European Commission since 2016.
The Commission insists on The need of strong partnership,
In collaboration. It is the same philosophy enlightening the digital hubs.
To foster joint platforms of the different
companies to achieve a goal more efficiently and help each other
We are also talking of alliances. Alliances,
for example, on subjects sucha hydrogen, or in matters of
Raw materials. The commission also is working to generate that
type of platform in private public partnerships in
the field of plastics and to get transformation
from collaboration.
On the other hand, the Commission insists on preparing the
European citizens for the digital change, in line with
that we commented previously, The EU have to train the
European citizens in the digital field, giving them the tools and
necessary knowledge not just for a job, but also
for daily life in the digital interaction with
public administrations or the rest of the citizens,
and, lastly, in the forth topic
To boost this digitization would be the
regulatory and legislative environment. The new digital framework
requires that the European regulation and legislation have to
adapt to the new digital times and to address
the needs and situations that can occur and at the same
time, to promote from the regulatory and political areas
industrial transition in the digital field.
Two years later after this start of the
Digitization plan In
2016, the Commission carried out
an analysis of progress in that digital evolution
It can be observed that the national countries, the state members,
have taken commitment on those digitization initiatives for industry
although there is still a lot
way to go.
The SMEs are making progress in that evolution to digitization, but
It is true that at national level two trends are observed, one
countries take a certain leadership, the governments of those
countries push for the development and the impulse directly.
But, on the other hand, other countries are
working more oriented to facilitate the ecosystem, the partnerships, the
collaboration between industry, Science and society that can
generate a breeding ground
suitable for catalyze the transformation, that is,
creating the right framework and fostering the necessary environment.
This way, science and society
progress also on that
digital transformation. Some examples of good practices are
the industry program
Industry 4.0 in Germany or the initiatives that are
taking place in Sweden regarding this impulse to
industrial digitization.
We have seen shortly how the Commission is strongly committed
to the change of the industry situation in Europe. We are talking about a
professional economic and social opportunity for our continent.
One very relevant aspect is that the Commission
Is fully committed. The first conclusion is
the strong and evident commitment to the social aspects
in the industrial transition.
The Commission bases this transformation in the
founding principles and fundamental values ​​that govern
our Union: This is very relevant because it considers
ethic, social defence and respect for
the individual, as it is at the base of the Union.
It is also founded in the impulse to
competition. We're talking about avoiding
market distortions, protectionism, but also to avoid
disloyal competition practices.
At the same time, the Commission is promoting
open spaces, open markets and, in
general, a healthy environment for competition at
all levels.
Let me insist also as a fundamental conclusion:
The two most relevant aspects of this transformation are the
two transitions established by the European authorities
Climate and digital change.
It is needed to involve all relevant stakeholders,
social, as well as civil society, in this
change that belongs to everyone, not only promoted by institutions or
authorities at European level: this is a change that
concerns us all as we have to promote, as we have already
seen along the presentation, the collaboration and
the partnership between the different actors,
SMEs, industry, regional authorities and
all the institutions that participate in this process of
industrial transformation. Thank you very much.