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09 Oct 2018Working Paper Summaries

Towards a New Approach for Upgrading Europe’s Competitiveness

by Christian Ketels and Michael E. Porter

Is the EU’s model of European integration a driver or a barrier towards higher European prosperity? This paper analyzes why the integration model that was successful in the past has lost effectiveness, and sets out strategic principles to guide a new approach. Integration remains key for upgrading European competitiveness, but needs to move towards a new form.

Author Abstract

The European Union is facing fundamental questions about its future direction. A key issue is the role of European integration in raising Europe’s competitiveness and prosperity. Market integration and regulatory alignment were a powerful tool to do so in the past but results have been increasingly disappointing over time. The new reality of the EU and its competitiveness challenges requires a more localized approach, with European institutions focusing on the integrity of the Single Market while supporting EU countries and regions in pursuing location-specific strategies. While there are signs of EU practice moving in this direction already, we argue that it will take more action and a more visible political decision to shift the way the EU is operating. The paper lays out key strategic principles to guide this new approach towards upgrading European competitiveness.

Paper Information

Full Working Paper Text
Working Paper Publication Date: September 2018
HBS Working Paper Number: HBS Working Paper #19-033
Faculty Unit(s): Strategy

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