- Industrial policy can be defined as the set of measures that public administrations implement to promote growth, development, or competitiveness.
- Telefónica advocates an industrial policy that encourages investment and innovation in connectivity and digital services that guarantee an adequate return on the necessary resources and investments.
What is industrial policy?
Industrial policy refers to the set of actions and measures that different public administrations take to promote the growth, development and competitiveness of specific sectors.
The primary objective of this industrial policy is to create favourable conditions for industry through various tools with the aim of creating jobs, promoting innovation and increasing economic growth.
A possible definition can be found on the website of the European Council, one of the main institutions of the European Union.
It explains that the industrial policy of this continental organisation ‘aims to strengthen the competitiveness of EU industry and promote a more sustainable, resilient and digitised economy that creates jobs’.
What are the objectives of industrial policy?
Based on the importance of this sector, industrial policy aims to improve both the productivity and competitiveness of industry.
Another aspiration of these industrial policies is to increase the sector’s contribution to the gross domestic product of the corresponding states.
Similarly, another objective is to reconcile industrial policy on the one hand with sustainability and decarbonisation on the other.
Digital transformation and its promotion is another issue that industrial policy pursues in order to make it a driver of competitiveness.
The creation of quality and stable jobs is another of the objectives targeted by the development of industrial policy.
Objectives of EU industrial policy
Returning to the European Union as an example, on this occasion we find that the objectives in terms of industrial policy, set out on the European Parliament’s website, include ‘accelerating the adaptation of industry to structural changes’, ‘fostering an environment conducive to enterprise and business development throughout the Union’, ‘fostering an environment conducive to enterprise and business development’ and ‘promoting an environment conducive to cooperation between businesses’.
Telefónica’s position on industrial policy
Telefónica’s position on industrial policy is based on the premise that ‘public policies must strengthen the competitiveness and sustainability of sectors that are crucial for present and future economic growth in economies that are highly dependent on digitalisation’, and that ‘the telecommunications sector plays an essential role in the European economy’.
An approach that, according to the operator, ‘should promote incentives for investment and innovation in future-ready connectivity networks to ensure an adequate return on the necessary investments and resources’.
Similarly, the company also advocates ‘promoting fair conditions for the balanced development and smooth functioning of the digital ecosystem, ensuring the sustainability of network investments’.
Finally, in addition to ‘recognising telecommunications infrastructure as enablers of the green transition’, Telefónica also refers to ‘promoting innovation and competitiveness in European industry based on a comprehensive approach,’ understood as ‘public policies that promote R&D through to commercialisation, including policies that stimulate digital adoption, digital trust, employability and cooperation for the harmonised development of emerging technologies.’
