Enterprise and industry
2. Policy actions
The European Union’s Enterprise policy includes a number of specific action programmes:
Industrial policy. In October 2005, the Commission launched a new industrial policy to create better framework conditions for manufacturing industries in the coming years. It noted that the manufacturing industry employs some 35 million people and accounts for three quarters of EU exports. It is covers over 80% of EU private sector R&D expenditure. The policy action supports a strong and dynamic industrial base through seven initiatives – on competitiveness, energy and the environment, intellectual property rights, better regulation, industrial research and innovation, market access, skills and on managing structural change. Additional initiatives are targeted at specific sectors such as pharmaceuticals, defence and communication technologies.
Framework conditions favourable to SMEs. In reality, 99% of businesses in the European Union are small or medium-sized enterprises. They account for 75 million jobs. Based on its principle of “think small first”, the EU tailors state aid rules to take the needs of SME’s into account. SME participation in research and innovation projects is promoted, creation of new businesses is aided and running or starting a small firm is made easier by cutting red tape. For these measures, €3 billion is available in the 2007-2013 period. The EU also encourages education in schools about the values of entrepreneurship and provides special support for women and ethnic minorities wanting to set up a business. Detailed measures are listed in the Commission’s “Guide to SME policy”.
Competitiveness and Innovation Framework Programme (2007-2013) is designed to support the objectives of the re-launched Lisbon strategy. It consists of the Entrepreneurship and Innovation Programme, ICT Policy Support Programme and Intelligent Energy-Europe Programme. Eco-innovation is a theme throughout the different measures. For the seven-year period, the CIP has a budget of approximately €3,6 billion. Specific measures include setting up financial instruments managed by the European Investment Fund, a network for services supporting business and innovation and a Community program for the reduction of regulatory administrative costs.