Stimulating industrial competitiveness in the EU – The case of France

Valdemar Lucas Hinrichsen

Studenteropgave: Semesterprojekt


Many countries of the European Union are now trying to upgrade their industrial competitive advantage since the Euro has widened the gap between the more and the less competitive member states. France is in a delicate situation as her public debt is rising to a critical level, many therefore believe she is about to join the “problem countries” of the EU. This threatens the future of the monetary union as France was one of the major players in its creation along with Germany. The national competitive advantage has become more prominent for member states especially since the beginning of the financial crisis, leading to the Euro crisis which the EU is currently undergoing. Porter’s theory on national competitive advantage can shed some light on the main measures governments can take to enhance industrial competitiveness. France is used in this analysis as a case study due to the critical situation it is in, but also because the so-called “Gallois report” brought the attention on the crucial role that the industry has for the economy. The report, ordered by the French Prime minister, came out in November 2012 and investigates the problems faced by the industry and suggests measures to counter these. Porter’s policy suggestions are then applied to the ones suggested in the report. This comparison helps distinguishing which are the most urgent, important and relevant measures but more importantly, which policy suggestions can be applicable to other EU member states since Porter’s theory is meant to be applicable to any developed country. It also brings the discussion of whether Porter’s theory on national competitive advantage is outdated, relevant to the context of a crisis, applicable the EU and considering of the EU’s role and importance in its member states economy. Many industrial policies were found to stimulate competitiveness such as adequate education and training, dynamic financing, investment in R&D, favor new business formation and innovation, effective regulations, cluster formation, product quality upgrading but in general, the creation and upholding of a business environment where competitive advantage can be upgraded.

UddannelserEU-studies, (Bachelor/kandidatuddannelse) Basis
Udgivelsesdato14 jun. 2013
VejledereJesper Dahl Kelstrup


  • competitiveness
  • industry
  • France