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

Mario Holzner

No 89, wiiw Policy Notes from 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.

Keywords: industrial policy; ecological transformation; technological transformation; quality of life; democratic legitimation; structural change (search for similar items in EconPapers)
JEL-codes: D63 L16 L52 O13 O14 O15 O18 O25 O32 (search for similar items in EconPapers)
Pages: 35 pages including 15 Figures
Date: 2024-12
New Economics Papers: this item is included in nep-env and nep-ure
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