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EU competitiveness under new perspectives

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EU competitiveness under new perspectives

WELFAR EWE ALTH WORKCompetitiveness under New PerspectivesWorking Paper no 44Authors: Karl Aiginger (WIFO), Susanne Bãrenthaler-Sieber (WIFO), Johanna

EU competitiveness under new perspectives a Vogel (WIFO)41548EUROPEAN COMMISSION European Research Arealanded under Stcio-Koramc Sciences a HunaaitiesAuthors. Karl Aiginger (WIFO). Susanne Băr

enthaler-Sieber (WIFO), Johanna Vogel (WIFO)Reviewed by. Gunther Tichy (WIFO)Competitiveness under New PerspectivesWork Package 301MS46 "Research pape EU competitiveness under new perspectives

r competitiveness under new perspectives"Working Paper no 44This paper can be downloaded from v/o foreurope euPlease respect that this report was prod

EU competitiveness under new perspectives

uced by the named authors within the WWWforEurope project and has to be cited accordinglywwwform!EUROPE®!WE LFAR f WEALTH WORKTHEME SSH.2011.1.2-1Soci

WELFAR EWE ALTH WORKCompetitiveness under New PerspectivesWorking Paper no 44Authors: Karl Aiginger (WIFO), Susanne Bãrenthaler-Sieber (WIFO), Johanna

EU competitiveness under new perspectives WELFAREWEALTHWORKCompetitiveness under New PerspectivesKarl Aiginger (WIFO), Susanne Barenthaler-Sieber (WIFO), Johanna Vogel (WIFO)Contribution to t

ho ProjectEuropean growth has been disappointing in the past two decades. Europe failed to catch up with the US in factor productivity, and is growing EU competitiveness under new perspectives

slower than the US economy in and after the financial crisis. Unemployment rate is about 10%. While Europe has a balanced external trade and relative

EU competitiveness under new perspectives

stable export market shares, this is not the case for many Member countries and not for sophisticated industries. This calls for new policies to enha

WELFAR EWE ALTH WORKCompetitiveness under New PerspectivesWorking Paper no 44Authors: Karl Aiginger (WIFO), Susanne Bãrenthaler-Sieber (WIFO), Johanna

EU competitiveness under new perspectives er strategy. Some concepts of competitiveness have been correctly criticised for overemphasising price competitiveness disregarding social innovations

, inclusiveness, and education, as well as modern services or ecological innovations as drivers of growth, new jobs and sustainability.The object of t EU competitiveness under new perspectives

his Milestone papers is first to discuss how the concept of competitiveness has evolved over time, and which further changes have to be made after the

EU competitiveness under new perspectives

experiences of the financial crisis (as well as the five challenges defined in this research project, demography, globalisation, new technologies and

WELFAR EWE ALTH WORKCompetitiveness under New PerspectivesWorking Paper no 44Authors: Karl Aiginger (WIFO), Susanne Bãrenthaler-Sieber (WIFO), Johanna

EU competitiveness under new perspectives he competitiveness of industries and countries in general over the past decade, and specifically with respect to the new challenges and changes necess

ary for the transition to a new growth path. It contributes in particular to the first central question, to some extent also to research question thre EU competitiveness under new perspectives

e. It is closely related to task 301.3 (where policy conclusions are derived from the new concepts and the empirical findings) and to all tasks in 302

EU competitiveness under new perspectives

(innovation policy) and 306 (industrial policy).Keywords: Competitiveness, economic growth path, industrial policy, social capital as growth driver,

WELFAR EWE ALTH WORKCompetitiveness under New PerspectivesWorking Paper no 44Authors: Karl Aiginger (WIFO), Susanne Bãrenthaler-Sieber (WIFO), Johanna

EU competitiveness under new perspectives try performance and for policy conclusions. We attempt to establish a definition that is adequate if economic policy stnves for a new growth path that

is more dynamic, socially inclusive and ecologically sustainable. We tentatively apply the proposed definition to evaluate the "competitiveness" of E EU competitiveness under new perspectives

U member states as well as to compare Europe's competitiveness with that of the US. Switzerland. Japan and China, where possible.In the first part of

EU competitiveness under new perspectives

the paper, we examine the evolution of the concept from a focus on "inputs" at the firm level (price or cost competitiveness) to economic structure an

WELFAR EWE ALTH WORKCompetitiveness under New PerspectivesWorking Paper no 44Authors: Karl Aiginger (WIFO), Susanne Bãrenthaler-Sieber (WIFO), Johanna

EU competitiveness under new perspectives WforEurope project. We propose to define competitiveness as the 'ability of a country (region, location) to deliver the beyond-GDP goals for its citiz

ens".In the second part of the paper, the performance of the EU-27 countries is assessed along the dimensions described above. We begin with price com EU competitiveness under new perspectives

petitiveness and then proceed to economic structure and countries' capabilities regarding innovation, education, the social system, institutions and e

EU competitiveness under new perspectives

nvironmental ambition. We conclude with outcome competitiveness in terms of economic, social and ecological outcomes. Overall, we compile a database o

WELFAR EWE ALTH WORKCompetitiveness under New PerspectivesWorking Paper no 44Authors: Karl Aiginger (WIFO), Susanne Bãrenthaler-Sieber (WIFO), Johanna

EU competitiveness under new perspectives etween "outcome” and "input" competitiveness for the EU-27 using panel data analysis for the period from 2000 to 2010. We construct a composite indica

tor for outcome competitiveness consisting of income, social and ecological pillars, following the beyond-GDP literature. This measure is then econome EU competitiveness under new perspectives

trically related to composite indicators of the three groups of input indicators: price competitiveness, economic structure, and capabilities. The res

EU competitiveness under new perspectives

ults of panel regressions suggest that both economic structure and capabilities on aggregate are positively related to our measure of outcome competit

WELFAR EWE ALTH WORKCompetitiveness under New PerspectivesWorking Paper no 44Authors: Karl Aiginger (WIFO), Susanne Bãrenthaler-Sieber (WIFO), Johanna

EU competitiveness under new perspectives gical ambition and institutions are positively associated with outcome competitiveness. Overall, we conclude that a narrow focus on the price componen

t of competitiveness neglects other aspects of the concept that are likely to be particularly important for high-income economies like the EU-27.Ackno EU competitiveness under new perspectives

wledgements

WELFAR EWE ALTH WORKCompetitiveness under New PerspectivesWorking Paper no 44Authors: Karl Aiginger (WIFO), Susanne Bãrenthaler-Sieber (WIFO), Johanna

WELFAR EWE ALTH WORKCompetitiveness under New PerspectivesWorking Paper no 44Authors: Karl Aiginger (WIFO), Susanne Bãrenthaler-Sieber (WIFO), Johanna

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