- Industrial policy has a number of characteristic features, such as government intervention, collaboration with the private sector and a sectoral approach.
- Telefónica advocates an industrial policy focused on strengthening cross-cutting technology sectors in order to boost industrial sectors.
Industrial policy refers to the measures that public administrations determine to promote the growth, development, and competitiveness of specific sectors.
The objectives of this industrial policy are varied, ranging from improving the productivity and competitiveness of the sector, increasing its contribution to GDP, reconciling the digital transition with the green transition, and promoting quality and stable jobs.
Main characteristics of industrial policy
With regard to the main characteristics of industrial policy, we could start with something that, although it can be deduced from its very name, is relevant: its sectoral focus.
Another characteristic of this industrial policy has to do with the intervention of the relevant administrations, through formulas such as subsidies, regulation or financing.
However, this relationship with the public sector does not exclude collaboration with the private sector in order to jointly evaluate the mechanisms and adjust – or even eliminate, if necessary – the incentives depending on the results obtained.
Similarly, industrial policy has to do with the social and economic objectives it pursues, marked by the search for economic growth, job creation—as mentioned above—technological innovation and autonomy. The concept of strategic autonomy is also highly relevant in industrial policy.
Telefónica and industrial policy
Telefónica advocates an industrial policy in which, thanks to its leadership in the digital world, the European connectivity and technology gap with other regions could be reduced, with the promotion of investment being a key result.
The operator places precisely this investment, together with innovation, at the centre of this digital and technological development.
The company therefore advocates policies that favour investment in future-proof connectivity networks, fair technological regulation, the construction of a consistent and coherent framework to promote the dual digital and green transition, and, finally, a comprehensive approach to industrial policy through the promotion of European industry and its competitiveness, starting with R&D and extending to mass commercialisation.
In short, Telefónica’s position on industrial policy could be summarised as strengthening cross-cutting technology sectors in order to boost industrial sectors.
Telecommunications in industrial policy
In the same document, the company also explains that ‘beyond connectivity, the adoption of digital services and solutions promotes competitiveness by enabling companies to drive strategic differentiation and innovation, increase efficiency, expand the market, improve the customer experience and provide real-time information, allowing companies to make decisions and adapt quickly to market changes’.
Therefore, the telecommunications sector has a ‘crucial’ role to play in achieving the digital transition by offering a range of digital services that include connectivity, artificial intelligence and cybersecurity, providing tailor-made solutions to businesses and public administrations.
In addition to supporting the green transition, the telecommunications sector can drive the construction of robust industrial ecosystems derived from the integration of industrial data with emerging technologies, making the sector not only a key facilitator of technological innovation, but also a driver of competitiveness.
