Advanced Manufacturing: A Pillar of EU Competitiveness

The European Union (EU) is increasingly recognizing the pivotal role of advanced manufacturing in driving its economic growth and global competitiveness.

Advanced manufacturing, which integrates cutting-edge technologies like robotics, artificial intelligence, and 3D printing into production processes, offers significant advantages in terms of efficiency, quality, and sustainability.

The Joint Research Centre (JRC), the European Commission’s science and knowledge service, carried out a comprehensive overview of the European Union’s (EU’s) advanced manufacturing industry (citation below).

Examples of Advanced Manufacturing - Robotics, 3D-Printing and AI.
Image created by Market Business News.

Key Findings from the JRC Study

  • Global Landscape

The global advanced manufacturing industry is highly concentrated, with China, the US, and the EU dominating the market. While China has made significant strides, the EU remains a strong player, particularly in countries like Germany, Spain, France, and Italy.

  • EU’s Competitive Position

Despite China’s dominance, the EU has demonstrated a strong commitment to innovation, as evidenced by its high number of patent applications in advanced manufacturing.

However, the market structure, dominated by small firms in the EU compared to larger firms in China, presents challenges in terms of international competitiveness.

  • Industrial Ecosystems

The study analyzed the industrial ecosystems, or networks of interconnected firms, that underpin advanced manufacturing.

It found that the EU is particularly strong in ecosystems related to 3D printing, robotics, and power electronics.

However, China’s dominance in several ecosystems, primarily due to its strong intellectual property portfolio, highlights the need for the EU to invest in innovation and technology.

  • Policy Implications

The study emphasizes the importance of targeted policies, strategic investments, and international collaboration to foster the diffusion and adoption of advanced manufacturing technologies in the EU.

This includes supporting research and development, promoting skills development, and facilitating access to finance for innovative firms.


Challenges and the Way Forward

Although the EU shows strength in certain technologies and ecosystems, such as 3D printing and robotics, the region is still facing significant competitive pressure from China and the US.

China, with its superior intellectual property portfolio and the dominance of larger firms, underscores the need for the EU to scale up its medium-sized enterprises.

Strengthening these companies can create a more resilient industrial foundation, enhancing the EU’s capacity to compete internationally.

In particular, expanding the European presence in energy-intensive and electronics sectors, where China leads, is critical to securing a stronger position in global advanced manufacturing.


Conclusion

Advanced manufacturing is a critical driver of the EU’s economic competitiveness and industrial resilience. By leveraging its strengths and addressing the challenges, the EU can position itself as a global leader in this transformative field.

However, success will depend on continued investments in technology, intellectual property, and policies that promote firm growth and international collaboration.


Citation

FABIANI, J., SOGUERO ESCUER, J., CALZA, E., DUNKER, C. and DE PRATO, G., Strategic Insights into the EU’s Advanced Manufacturing Industry: Trends and Comparative Analysis, Publications Office of the European Union, Luxembourg, 2024, ISBN 978-92-68-20758-1, https://doi.org/10.2760/7959469, JRC139092.