The New Era of Industrial Policy: Navigating Innovation, Competitiveness, and Security in the European Union With Insights From Latvia
The New Era of Industrial Policy: Navigating Innovation, Competitiveness, and Security in the European Union With Insights From Latvia

Summary/Abstract: Industrial policy has emerged as a crucial focal point for the European Union as it navigates the complexities of economic competitiveness and reevaluates its traditional comparative advantages. The EU and its Member States are actively reviewing current mechanisms designed to promote investments in the EU's technological, green, and digital transitions, with a particular emphasis on modernising standards that supersede those of individual countries. This study aims to explore the essential role of industrial policy in enhancing sustainable competitiveness within the EU. It offers a comprehensive review of trends based on references from scholarly research, policy analyses by think tanks, and assessments from international institutions. This approach seeks to provide an understanding of the evolving landscape surrounding industrial policy and sustainable competitiveness in the EU. The research is grounded in an evidence-based methodological framework that synthesises insights from relevant literature sources and refers to the regulatory environments that influence investment decisions. This context is essential for understanding the complexities of industrial policy on the EU. A case study of Latvia - an EU Member State with a growing focus on industrial, security, and defence policies and initiatives - underscores the need of aligning the EU's New Industrial Policy with national policies. The study concludes that technological and entrepreneurial activities, along with business investments, are essential drivers of the EU's long-term competitiveness.

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