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Catalytic Industrial Policy – in concordia varietas: The outcome metrics of making the EU an attractive place for green and digital businesses

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  • Mario Holzner

    (The Vienna Institute for International Economic Studies, wiiw)

Abstract

This essay suggests that there is a need for a Catalytic Industrial Policy (CIP) aimed at maximising positive outcomes on three axes at the same time – the green, the digital and the social – in order to speed up their realisation. Respective investments need to be guided in the desired directions, while ensuring that the benefits of CIP are widely shared, for instance through conditionalities. A bold CIP needs permanent monitoring, including through the use of relevant outcome indicators with pre-defined selection criteria. This essay provides a list of criteria and examples of outcome metrics. A key objective of such indicators would be to shed light on interdependencies. Also, it is important to look beyond those indicators that are already widely used at different levels of disaggregation and also beyond typical industrial policy examples. Alternative examples of indicators provided include, for example, trust in the national government, the operational stock of robots, and the area density of high- and low-voltage circuits in the transmission of electricity. A (perhaps unusual) CIP case could thus be a Europe-wide investment programme in high-quality, technologically sophisticated and sustainable (public) housing in support of the digital revolution, CO2 reduction and overcoming the housing crisis, thereby legitimising a tremendous ongoing structural change.

Suggested Citation

  • Mario Holzner, 2024. "Catalytic Industrial Policy – in concordia varietas: The outcome metrics of making the EU an attractive place for green and digital businesses," wiiw Policy Notes 89, The Vienna Institute for International Economic Studies, wiiw.
    • Handle: RePEc:wii:pnotes:pn:89
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    References listed on IDEAS

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    More about this item

    Keywords

    industrial policy; ecological transformation; technological transformation; quality of life; democratic legitimation; structural change;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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