Staying Competitive in Tomorrow s Global Economy: New industrial challenges and strategies in the Nordic Countries and Germany

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1 Staying Competitive in Tomorrow s Global Economy: New industrial challenges and strategies in the Nordic Countries and Germany A conference by SWP, the Nordic embassies Berlin and the Nordic Council of Ministers Date: 11 May 2015 Venue: Felleshus of the Nordic Embassies, Berlin In the aftermath of the European economic and debt crisis, the question of how to regain and promote competitiveness is very high on the agenda of European countries. National competitiveness strategies often centre on fostering innovation understood as the translation of new ideas into goods or services that generate added value. According to leading international rankings, the Nordic countries and Germany are frontrunners at embracing innovation policies for boosting their competitiveness in terms of economic growth and social welfare. Growth will hence be one focus area of the Danish Presidency of the Nordic Council of Ministers in 2015, emphasising that now the time is ripe to concentrate on growth and jobs. A key point in the discussion about staying competitive, both in Germany and the Nordic countries, is the maintenance of jobs in the industrial production sector. Modernizing home-production and maintaining an efficient production base are crucial to exports, innovation and future growth. In order to keep the welfare state systems, stay competitive and maintain growth, the industrial sector and societies need to adapt. In the future, industrial production is expected to become more flexible, closer integrated with customers, and able to link production with high-value services. The German government reacted to this challenge by launching a high-tech strategy in September 2014 to ease and accelerate the practical application of scientific research. The strategy focuses on, inter alia, digital solutions, sustainable energies and smart mobility in order to strengthen national growth and prosperity. Industry 4.0, referring to the fourth industrial revolution, is a project within that strategy. It promotes the computerization of the manufacturing industry as well as a strong customization of products under the conditions of a highly flexible (mass-) production. On the Nordic side, similar debates and processes are taking place. As an example, the Danish government has launched a process that should lead to recommendations on how to maintain the industrial production base. The need for a modern industrial policy 1

2 is also on the EU agenda. The EU member states ministers for industry recently discussed whether there should be a 20% target for the industrial share of GDP, however several EU member states are sceptical towards this target. The conference will examine Nordic and German approaches to competitiveness. This particularly relates to existing and future industrial challenges and the upcoming fourth industrial revolution (industry 4.0). What are the main focus areas, what is expected to come out of initiatives on the national, regional and European levels, what are the common challenges and what can both sides learn from each other? What is the scope for cross-border cooperation between industrial companies in Germany and the Nordic countries (i.e. product export, subcontracting partnerships and exchange of knowledge and technology)? What is the global perspective for Germany and the Nordic countries in the transition to industry 4.0? In which ways can the Nordic countries and Germany jointly promote competitiveness and innovation related to new industrial strategies in international arenas, most importantly the European Union? Policymakers and experts from both the Nordic countries and Germany are invited to exchange their respective views, experiences and ideas for fostering competitiveness and new industrial approaches. The conference shall thus offer lessons which may be learned beyond the national borders and context.

3 Draft Agenda 9:00 Registration (coffee, tea, croissants) 9:30 Opening and Welcome H.E. Per Poulsen Hansen, Danish Ambassador in Germany Dr. Oliver Geden, Head of Division EU/Europe, SWP Representative of Nordic Council of Ministers 9:45 Key Notes (followed by Q&A s) Michael Dithmer, State Secretary Danish Ministry of Business and Growth Prof. Dr. rer. nat. Dr.-Ing. E. h. Henning Kagermann, Co-President of the German National Academy of Science and Engineering - What will be the key to competitiveness in tomorrow s global economy? - What industrial challenges and opportunities do we face? - What adequate strategies and policies are required? - Have the Nordic countries and Germany the industrial preconditions to be economically successful in the future? 10:45 Expert panel with Nordic and German politicians and experts: new industrial challenges and strategies - Industry 4.0 (plenary) - What chances does Industry 4.0 offer? - Is Industry 4.0 applicable for implementation both in Germany and the Nordic countries? - What are alternative industrial strategies? - What specific experiences do Nordic and German policymakers and entrepreneurs make in their attempts to foster competitiveness and innovation? Mats Friberg, CEO, Siemens Sweden Daniel Sahl, Coordinator Alliance of the Future of Industry, Federal Ministry for Economic Affairs and Energy, Berlin Mads Andersen, President, Industrial Sector, United Federation of Danish Workers (3f) Further speaker (tbc) 3

4 12:00 Lunch Break 13:00 Parallel Workshops on main thematic aspects Three workshops will discuss relevant issues in the context of modern industrial strategies and policies, taking into account both the political and the industrial perspectives as well as Nordic and German perspectives and experiences. The lead questions for all three workshops are: What are the industry s main needs in order to continue growing, both developing digitally, competing globally and maintaining a production base with jobs at home? What legal and political frameworks and what public policy strategies and guidelines are required for achieving these goals? What can be learned from Nordic and German approaches and experiences? I. Maintenance of jobs The workshop will discuss strategies to retain and to possibly even create jobs in the industry sector. It will shed light on the advantages and disadvantages of growing digitalisation on jobs. How does modern industrial policy and industrial digitalisation connect and could be balanced with the maintenance and the creation of jobs as a socio-political goal? How can common standards of social security and occupational health and safety be preserved and protected in a digitalised world? Ariane Hellinger, Trade Union Officer to the Executive Committee, Berlin Office, Industrial Union of Metalworkers (IG Metall) Elvar Knútur Valsson, Senior Economic Advisor, Ministry of Industries and Innovation, Iceland Moderation Prof. Dr. Victor Norman, Norwegian School of Economics II. Digital industrial development The workshop will shed more light on the possibilities, the limits and the advantages and disadvantages of further digitalisation in industries. What does digitalisation in industries entail? Could the German Industry 4.0 strategy also be applied in the Nordic and other European countries? How far could and should the digitalisation of industrial production processes go? To what extent could Nordic approaches to future industrial and digital development be an inspiration to Germany? What could be the implications of industrial digitalisation for the general economic development of a country? Iris Plöger, Head of Unit Digitalisation and Industries, German Confederation of Industries, Berlin Tomas Hedenborg, CEO, Fastems, Finland Dr. Jörg Ohnemus, Senior Researcher, Centre for European Economic Research, University of Mannheim, Germany

5 Moderation Dr. Tobias Etzold, Researcher, SWP III. Digitalisation of industries: common standards for Europe Common standards for industrial production are the key to a successful implementation of Industry 4.0. As Industry 4.0 is about using the internet to connect machines and products, it is crucial that products from different companies are able to communicate with each other. How can common standards for Industry 4.0 be defined, both on a national as well as on the EU-level; and how can policymakers facilitate standardization? What are the most effective ways in including companies across Europe in this process? How can common standards such as consumer protection, data privacy, copyright and competition regulations be preserved and protected in this context? Maria Sandqvist, Director Product Regulation and Environment, Teknikföretagen, Sweden Dr.-Ing. Dagmar Dirzus, Secretary, Association of German Engineers (VDI) VDI/VDE-Society of Measurement and Control Moderation Dr. Philipp Müller, CSC 14:30 Coffee Break 15:00 Final session: Summary of workshops and final panel Conclusions of workshops by the moderators leading to the final discussion on the following topics and questions: - What are general similarities and differences in the Nordic and German approach regarding new industrial challenges and strategies? - What lessons can be learned from each other? - What are the opportunities and challenges for working together on the international level? - How can the countries jointly contribute to foster a modern European industrial policy? Prof. Dr. Jakob Rehof, Head of Institute for Software and Systems Technology, Fraunhofer Institute/Technical University Dortmund Prof. Johan Stahre, Head of Division Production Systems, Product and Production development, Chalmers University of Technology, Gothenburg Ole Kring, CEO, Scandinavian Micro Biodevices, Denmark End of conference and networking reception 5

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