Transcript Diapositiva 1

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EUROPEAN CHAMPIONS
VS NATIONAL CHAMPIONS
FRANCO MOSCONI
Parma, 23 May
Agenda
[1] 1987-today: what Alexis Jacquemin taught us
[2] The EU today, the largest internal market in the world
[3] The rediscovery (revival) of the EU Industrial Policy at
the beginning of the 2000s
[4] The “Triangle” of the Industrial Policy
[5] Basic definition of “European Champions”
[5bis] Towards a taxonomy of “European Champions”
The thought of Alexis Jacquemin
[1987] on:
«the need to formulate a coordinated
European industrial policy that allows to go
beyond the national sector strategies, to
reduce the barriers between the large
national companies and to develop a wide
European internal market for industrial
applications».
AIRBUS case (4 countries)
STMicroelectronics case (2 countries)
GSM case (European standard)
Twenty years later…/I
i. The EU and its three successful ideas of the ‘80
and ‘90: Internal Market, Euro, Eastern
Enlargement;
ii. The State-Market relationship has changed
(liberalizations, privatizations, control on State
aid, reform of competition policy, etcetera);
iii. Does a level playing field really exist?
Twenty years later…/II
iv. The “new” European industrial policy: 4
Communications of the Commission in the period 20022005 + other documents
v. Huge wave of M&A, especially in Europe,… but also
resurging economic nationalism (patriotism) on the part of
single Member States;
vi. Will the chances for a Pan-European (continental)
reorganisation of our productive and financial system
really be taken?
Final objective:
to revive the thought – the insight – of Professor Jacquemin,
creating a sort of taxonomy of the «European Champions»
[EC].
Indeed – we can tell it right away – these are completely
different from the «National Champions» of the ’60s and
’70s (and beyond).
But are we equally sure that there is only one type of
EC?
Many things have changed over the last 20 years…
Joint Tech Initiatives
(2006)
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Competitiveness
Report (2006)
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Life sciences and biotechnology
Including embedded computing systems
Including renewable forms of energy (e.g., hydrogen and fuel cells)
4
As far as FP7 is concerned, Global monitoring for security
5
Including aerospace industry, the European space program, aeronautics
6
Pharmaceutical industry, including innovative medicines
7
Mechanical engineering
8
Including e-Health;
9
Including climate change; as far as FP7 is concerned, Global monitoring for environment.
10
Transportation and logistics, and in the 7th F.P. including Aeronautics.
11
Digital security and content
12
Nanoelectronics technologies, nanosciences, materials and new production technologies
13
Socio-economic sciences and the humanities
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The European Research Council’s Work Program identifies three main research domains: i) Physical Science & Engineering; ii) Life Science; iii) Social Science & Humanities.
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3
Socioeconomic13
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Legend:
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Nano12
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Digital11
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Environmen
t9
Transports1
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Health8
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“Aho Report” (2006)
7th FP (2007-2013)
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Mech7
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Pharma6
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Space5
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Defence4
EC Communication
I.P. (2005)
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Energy3
European
Background
Documents
EC Communication
I.P. (2002)
ICT2
Sectors identified1
Biotech1
The new approach to the Industrial Policy (latu sensu)
of the European Commission:
“Horizontal” or “Vertical”?
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The “Triangle” of the Industrial Policy (in
the European tradition)
The report of the Conseil d’analyse
économique (CAE) of 2000 describes the
Industrial Policy as the result of a triangle:
I think that today this triangle should be read as follows:
the third side should be reinforced without weakening the
other two!
A first type of EC is certainly related to these
developments, and reminds us of the Airbus and
STMicroelectronics cases, as well as of the GSM
standard (although the difficulties of the Galileo project
are not a good start).
Stylised Facts:
i) There are economic reasons to cooperate at EU level
in the field of R&D and of technological policy
[Pisani-Ferry 2005; Pisani-Ferry and Sapir 2006]
(ii) Some sectors tend to high levels of concentration
regardless of the size of the market, and this occurs
where the R&D expenses are extremely high [Sutton
1998; 2006]
(iii) A State-private strategic cooperation is the way
suggested by Dani Rodrik [2004].
(iv) The issue of the EU budget [“Sapir Report”
2003]
Nonetheless, a second type of EC is emerging.
A first attempt to define it can be found in the article published in “east”:
The large companies that have been able to deal with the single
European market, furthermore enlarged to the countries of Central
and Eastern Europe. These large companies are the result of crossborder mergers that pass the market’s examination.
Following in this path, I would add a third part regarding the single
companies participating in the new and bigger company, which, thinking
about it, applies to the whole country system:
As big as it may be, it can only contribute to the creation of
«European Champions»: but it has to do it in a position of
leadership in the sectors in which the valuable parts of its industry
and its tertiary are concentrated.
The “Structure” of the European market/I
The Economist on McKinsey data (Survey:
European Business, February 10th)
The “Structure” of the European
market/II
Farewell National Champions by N.
Vèron [2006] on the European Top 100
The “Structure” of the European
market/III
“FT Global 500” list*
GDP data†
N° of
Mkt Value % of
Compan (,000$)
total
y
(mkt
value)
Value
(Euro
trillions)
% of
region in
the
“triad”
GDP
EU
139
6,945.0
27.4
11,0
44.3
Europ (Euro Area)
e
US
(89)
(3,734.0)
(16.6)
(8,0)
(32.3)
197
9,897.0
44.2
10,5
42.4
Japan
60
2,155.0
9.6
3,3
13.3
Our own elaboration based on FT and ECB data
With regard to the Top companies (…) there are other authoritative
rankings (Forbes, Fortune, Business Week, R and
S/Mediobanca, etcetera)
Stylised facts (or, better, facts that are occuring before our eyes):
i. “Bigness is Back”;
ii. «Creative destruction» a’ la Schumpeter;
iii. Wave of M&A with Europe in a leading position (in 2006: $1.59
trillion);
iv. Increasingly bigger operations (many deals are above $10
billion)…
v. …and focused on the core business…
vi. …within sensitive sectors such as Energy, TLC and Utilities in
general, Banks and Insurance (+ Stock Market), Chemicals and
Pharmaceuticals, Defense, and other manufacturing sectors
(Fashion/Luxury, Steel, etcetera).
vii. But the EU in itself does not tell the whole story, since…
viii.…the big groups from the BRIC countries are arriving…
ix. …and there are also M&A across the ocean.