Industrial Urgency!Gabriel ColletisOctober 2015

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The presentation plan1. The place of the industry is better recognised today 2. The reasons of the industrial decline 3. The components of an Industrial Contract at the heart of a new Development model

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1. The place of the industry is better recognised today 1/3Until there is a little, the place of the industry was considered as marginalNow we discover that no country can remain without developed productive baseAt the same time we observe that countries that develop are based on the expansion of their industrial sectorDirect and indirect Industrial jobs (services linked to industry) represent 45% of the total employment in the market sectorThe industrial sector realises 80% of all exportations and 85% of R&D expenditures

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1. The place of the industry is better recognised today 2/3ButThe part of all european developed countries within european industrial exportations decrease, except those of GermanyThe industrial job losses and plant closures seem to be accelerating

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1. The place of the industry is better recognised today 3/3The competitiveness of the industry in most European countries has deteriorated, generating macroeconomic and social problemsthe foreign trade deficit weighs on growthwhich generates unemploymentlower revenue and tax revenueresulting in a worsening of the public deficit

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2. The reasons of the indusrial decline: the reasons frequently givenA bad specialisation (price sensible)Too high costs An overestimation of the Euro/PoundThe too small place of the SMEsBad relations between big enterprises and their suppliers Tropism on services and high technologiesToo low growth croissance

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2. The reasons of the industrial decline: three less frequently cited reasons1. The extraversion, then the financialisation of the big groups 2. An inefficient industrial policy 3. An outdated conception of work=>All these reasons converge and work as a system=>There is no simple issue to the industrial and economic crisis

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2. The reasons of the industrial decline: three less frequently cited reasons1. The extraversion and then the financialisation of big groups The fate of big/global groups appears not to be anymore linked with that of the national industrial basisTheir overseas investments are more important in the long run than those made in their home economyThe capital structure of these group is very open to global investors

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2. The reasons of the industrial decline: three less frequently cited reasons2. An inefficient industrial policy The industrial policy is centered on (individual) groupsIt does not support interactions among the productive system (firm/firm cooperation, firm/public laboratories/universities)

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2. The reasons of the industrial decline: three less frequently cited reasons3. An outdated conception of workThe labor remains considered as a costAnd not as a contribution of individual and collective skillsWhat constitutes an obstacle to the implementation of a comprehensive competitiveness strategy centered on innovationThis obstacle does not allow the shift towards a new development model

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3. The components of a productive pactEuropean countries must engage in a productive activities development program which must take place as the backbone for economic policyWe can identify a set of components of such a pact

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3. The components of a productive pact1. Another labor design should gradually emerge in correspondence with a different conception of competitivenessSwitching to the overall competitiveness is inextricably linked to the recognition of employee skillsA new historical compromise is neededbetween companies that choose to focus on innovation and employees who become "cognitive (knowledge) workers

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3. The components of a productive pact2. Finance must be made to serve more productive activitiesTemporal retardants" are necessary to make finance again liquide (instead volatile) playing on taxation and voting rights calculated in proportion to the holding period of the shares

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3. The components of a productive pact3. Production must be reoriented to address basic needs ... to reduce the burden of productive activities on natureThe basic needs remain considerable, including in developed countriesThese needs will be covered by production methods significantly reducing levies on nature

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3. The components of a productive pact4. The firm (large) should be recognized as a separate institution (separate from the company/corporate)There are now a wide variety of legal forms for companies/corporate but also a legal vacuum in most countries for the firmThe (large) firm should be "establishedwith a separate governing body of the corporateand stakeholders including long term equity holders + employees for the skills they bring

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3. The components of a productive pact5. Anchoring activities has to go beyond "simple" location Location concerns:land, buildings, infrastructure, grant equivalentsAnchoring activities means a triple proximity:spatial, based on competencies, trust/confidence

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3. The components of a productive pact6. Social norms but also financial and environmental should be part of more balanced trade, more respectful of man and natureProtectionism is not an end in itselfHowever, without protective standards, a new development of productive activities can not be undertaken

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3. The components of a productive pact7. Developed countries should strive for a new development model considering the industry as a "common good"The industry can not be considered as a private good like any otherIt also can not be nationalized

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3. The components of a productive pactThe industry must be considered a common good in which stakeholders of the firm are beyond the scope of providers of capital and labor, to embrace other stakeholdersas other companies (suppliers or clients), training and research institutions, public bodies, associations ...

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3. The components of a productive pact8. Economic policies must be based on this model and focusing on the long-timeThey must find ways and means of a new developmentrather than simply to stimulate or not to break growth

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9. Industrial policies should aim to increase the density of interactions within the productive system rather than supporting individual firms Ensuring the promotion of networks involving SMEs / SMIs considered as partners and not just suppliers or subcontractorsBy entering these networks in territories when possible3. The components of a productive pact

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3. The components of a productive pact10. The firm must be at the heart of the city, which implies a widening of the labor democracyThe labor democracy, rather than technological advance, is the main competitive advantage of developed countriesThe labor democracy is the sine qua non of a strategy focused on innovationIt involves employees who are better trained, having technically and economic culture, participating in strategic decisions