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How to support manufacturing abroad and enhance competitiveness

Source: China Business News Release time: 2019-06-25

Many governments attach great importance to the industrialization of innovation results, truly transforming the innovation results into real productivity, and promoting innovation and development. For example, the establishment of special fund support, the creation of a good innovation ecosystem combining production, education, and research, and the emphasis on the cultivation of innovative talents. In addition, according to the maturity of innovation results and the differences in fields, precise measures and multi-dimensional efforts are made to develop differentiated support policies.

Yu Wenjie

In today's world, a new round of industrial revolution has arisen, and many countries have implemented various strategies to continue to promote the development of their own manufacturing industries and further enhance the importance of manufacturing in the national economy.

United States: shift to "re-industrialization" strategy, frequently promulgate manufacturing support policies

In 2018, the value added of the US manufacturing industry accounted for 11.4% of GDP. Against the background of a new round of technological revolution leading to changes in the industrial structure, the United States has shifted from a "de-industrialization" to a "re-industrialization" strategy, and has frequently introduced manufacturing support policies. For example, in October 2018, a report issued by the US Advanced Manufacturing Technology Commission set out three major goals: developing and transforming new manufacturing technologies, education and training, and pooling manufacturing labor, expanding the capabilities of domestic manufacturing supply chains. In response to these three goals, the report proposes 13 strategic goals and 35 priority plans.

In February 2019, the United States issued a future industrial development plan, which specifically proposed three measures: first, the United States must invest in infrastructure and people; second, it leverages the strength of the United States' unique R & D ecosystem, including the federal government, Colleges and universities, research institutions, private enterprises, and scientific charities; the third is to rely on targeted investment to give more authorization to the domestic research and development ecosystem.

Germany: targeted support to key industrial sectors to increase industrial output

In February 2019, Germany issued a draft of the National Industrial Strategy 2030, which aims to support key industrial areas in a targeted manner, increase industrial output value, and enhance the competitiveness of German industry in Europe and globally. The National Industrial Strategy 2030 proposes a clear goal to gradually increase the proportion of industry in the total value added of Germany and the EU to 25% and 20% by 2030, and strive to ensure that German industry in Europe and the world Economic and technological strength and competitiveness. At the same time, it is committed to maintaining the integrity of the industrial chain and enhancing the strength of small and medium-sized industrial enterprises. Specific measures include: First, create a better institutional framework for the development of enterprises. Government intervention measures include subsidies and assistance, setting affordable energy prices, stable social welfare and a competitive tax system. Second, put forward: Scale is the key! Encourage mergers to form "leading companies." Third, create a level playing field for foreign investment. Fourth, provide personalized preferential treatment and support to SMEs, and strengthen technological innovation protection for SMEs.

Japan: Unique in robot manufacturing

Compared with the United States and Germany, Japanese manufacturing is more focused on high-end manufacturing and precision manufacturing, especially in robot manufacturing. As early as 2015, Japan released the "New Robot Strategy", which proposed three major goals: the world's robot innovation base, the world's number one robot application country, and a new era of world-leading robots. In order to achieve the above three goals, the Japanese government has formulated a five-year plan. By 2020, it will maximize the application of a variety of policies including government system reform, creating an innovative environment, talent training, and the next generation. A 100 billion yen robot support project.

India: Using Modern Technology to Promote Manufacturing

India's manufacturing sector accounted for 15% of GDP in 2017. At the end of 2018, relevant Indian authorities proposed a new industrial policy, which aims to use modern technologies including artificial intelligence, robotics, the Internet of Things, blockchain and machine learning to promote the development of manufacturing and increase its contribution to GDP. Share, promote the development of manufacturing, attract investment and create jobs. The focus of this policy is to explore how to reduce regulatory barriers to the development and application of new technologies, and encourage companies to develop and use cutting-edge technologies such as robotics and artificial intelligence.

The manufacturing industry has always been the engine of economic growth, prosperity, and innovation in various countries in the world. Many economies in the world are currently competing in modern manufacturing. The trend and trend of competition in the world today is the competition of core technologies. Western countries have been in the leading position in traditional manufacturing for the past few decades, and now with the rapid rise of a large number of emerging economies, their traditional monopoly advantages over core technologies are being reduced.

In the process of economic development, especially the promotion of innovation, the government and the market are coordinated with each other. Generally speaking, many countries have formulated relevant innovation policies based on the status of their development. The four countries mentioned above have clearly put forward their own priority industries. The United States focuses on supporting cutting-edge industries. Both the federal and state governments have provided key policy support during the nascent stage of the industry. Germany adopts an open innovation policy for small and medium-sized enterprises and start-ups, which aims to stimulate the initiative of innovation subjects. Through imitation and innovation, Japan has promoted the innovation and development of its characteristic industries such as the robot industry and the automobile industry. India is studying how to remove institutional obstacles to the development of manufacturing companies and encourage foreign investment. One thing in common is that many governments attach great importance to the industrialization of innovation results, truly transform the innovation results into real productive forces, and promote innovation and development. For example, the establishment of special fund support, the creation of a good innovation ecosystem combining production, education, and research, and the emphasis on the cultivation of innovative talents. In addition, according to the maturity of innovation results and the differences in fields, precise measures and multi-dimensional efforts are made to develop differentiated support policies. (Author: Chinese Academy of Finance Science)

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