Course: International Competitiveness [120861-0622] What is the Lisbon strategy background?
We live through two revolutions: ICT and
globalization.
The Lisbon Strategy
- a way to boost competitiveness of the EU In some ICT corporations, productivity can be
countries
multiplied by 4 in 10 years.
We need to adapt to the Information economy and
Arkadiusz Kowalski, Ph.D.
the Knowledge society
e-mail: [e-mail]
This requires a lot of reforms.
World Economy Research Institute
Warsaw School of Economics
Structural challenges need structural answers.
EU performance 1999-2004 (US=100)
What is the Lisbon strategy ?
THE ORIGINAL VERSION (2000): aims to make
100
Europe the most competitive and dynamic economy
80
in the world&
60
 turning Europe into the world s most competitive and
90,6 92,1
86,3 87,5
40 80,7 81,5 dynamic knowledge-based economy, capable of
1999
64,2 64,6
sustainable economic growth with more and better jobs
2004
20
and greater social cohesion within 10 years,
0
GDP per capita Employment rate (1) Hours worked per worker (2) (3) Hourly labour productivity (3)
Quantifiable targets in a variety of areas (R&D,
employment etc: employment rate of 70% by 2010, R&D
1) Calculated - Employment rate = 100 * (GDP per capita / Labour productivity per person employed)
2) Calculated - Hours worked per worker =100 * (Labour productivity per person employed / Hourly labour productivity)
3% of GDP&
3) EU15 values for Hours worked per worker and Hourly labour productivity
4) 2004: forecasts
Controversy in the original version of Lisbon strategy, (2000)
The Lisbon Summit, March 2000
Various objectives : economic, social, environmental
Many ambitions
The strategy for the European Union aimed at:
Competitiveness: liberalization and structural reform
A transition to a knowledge-based economy by Innovation: a dynamic knowledge-based economy
Sustainable economic growth
improving policies for the information society and R&D,
Full employment: more and better jobs
pursuing structural reform for competitiveness and
Greater social cohesion: fight against poverty/social exclusion,
completing the internal market
modernization of the European Social Model
Environmental sustainability
A modernization of the European social model by
investing in people and combating social exclusion
Very little means
Most policy instruments were at the national level
Sustaining the economic outlook and favourable growth
No legal constraints
perspective by applying an appropriate macro-economic
No budgetary outlays
policy mix
The European Union is thus responsible for things it basically
cannot control (and about which Member States are not eager to act).
International Competitiveness
Rival interpretations of the Lisbon Strategy The Lisbon objectives widened
The summits of Nice (December 2000), Stockholm
One focused on competitiveness and innovation
(March 2001) and Gothenburg (June 2001) added new
 Making the EU the most competitive and dynamic
objectives to Lisbon
knowledge-based economy in the world by 2010
The European Social Agenda: structural reform of
labour markets, job creation and measures against
Another focused on new balance between social and
social exclusion, poverty and discrimination
economic dimensions of European integration
Sustainable social protection systems (pension and
 socio-economic policy triangle : equal weight for full
health care systems)
employment and social cohesion alongside
growth/competitiveness/fiscal stability as EU
Sustainable development  making the environment
objectives
Lisbon s third pillar
social protection
A re-launch of Lisbon
Concentration on the Lisbon agenda:
Brussels III (March 2005) agreed on: knowledge and innovation for growth (1/3)
re-focusing priorities on economic growth and
employment by investing in innovation and knowledge
increase and improve investment in RTD
and making Europe an attractive place to invest and work
facilitate innovation and promote entrepreneurship
improving governance by:
- making the setting of priorities clearer,
promote the information society for all
- nenhancing member states commitment (national
improve access to finance
action programmes, a national Lisbon coordinator and
strengthen the involvement of national parliaments)
- improving monitoring by the Commission
A reinforced policy process based on an integrated 3-yearly
policy cycle based on strategic priorities and integrated policy
guidelines, followed-up by an annual Community Lisbon
programme and national reform programmes
Concentration on the Lisbon agenda: making Europe and
Concentration on the Lisbon agenda:
its regions a more attractive place to invest and work (2/3)
More and better jobs (3/3)
expand and improve transport infrastructures
attract and retain more people in employment and
modernise social protection systems
improve the environmental contribution to growth
and jobs
improve adaptability of workers and enterprises and
the flexibility of the labour market
address the intensive use of traditional energy
sources
increase investment in human capital through better
education and skills
administrative capacity
health of the labour force
International Competitiveness
The comparison of Lisbon strategy, revised
Cohesion Policy and Lisbon Strategy (1/3)
version (2005) and original version (2000)
The European Council of march 2005 underlined:
The Lisbon strategy, revised version (2005):
the need to re-launch the Lisbon Strategy:
"The Union must mobilise all appropriate national and
Less objectives :  priority to the economy,
Community resources-including cohesion policy".
no more social and environmental objectives
the necessity to involve regional and local actors in order
Less coordination :  no name and shame of the
to achieve the Lisbon objectives, especially in areas where
Member States by the Commission
proximity matters such as:
Less appropriation by the EU :  Member States must
- innovation and the knowledge economy,
feel more responsible
- entrepreneurship,
..& but then, what is now the added value of an European
- support for SMEs.
approach?
Cohesion Policy and Lisbon Strategy (2/3)
Cohesion Policy and Lisbon Strategy (3/3)
Cohesion guidelines 2007-2013: in line with the Lisbon
COHESION POLICY LISBON AGENDA
strategy
Community Strategic
Cohesion policy should focus to a greater extend on:
Integrated
Guidelines
Guidelines
-knowledge,
- research and innovation
- human capital.
National Strategies National Reform
(NSRFs) Programmes
Accordingly, financial effort in support of these fields should
be significantly increased.
National and Annual Progress
Regional programmes
Report
Innovation process and regions (1/2) Innovation process and regions (2/2)
The overall innovation performance of an economy depends
The formation of regional clusters is often the key to
not only on how firms and research institutes perform, but
the successful promotion of research, technological
also how they interact with each other.
development and innovation.
Innovation is the result of frequent interactions between
people, firms, organisations whose knowledge and know-
The capacity of regional decision makers and
how are strengthened reciprocally and accumulate.
entrepreneurs to turn knowledge, skills and
competencies into sustainable competitive advantage is
Innovation is most effectively addressed at regional level,
as physical proximity fosters the partnerships between
crucial to regions' economic performance.
actors in both public and private sectors.
However, European regions vary considerably in
Proximity between different actors makes it easier for them
their capacity to absorb and develop knowledge and
to create, acquire, accumulate and utilise knowledge faster
technology => cohesion policy.
than firms outside of knowledge intensive, dynamic regional
systems of innovation.
International Competitiveness