European Union Building Strategic Value Chains: the Case of Battery Industry

126
DOI: 10.20542/0131-2227-2021-65-12-109-117
A. Nevskaya, nevskaya@imemo.ru
Primakov National Research Institute of World Economy and International Relations, Russian Academy of Sciences (IMEMO), 23, Profsoyuznaya Str., Moscow, 117997, Russian Federation.

Received 22.06.2021.

Abstract. The article analyzes the EU’s experience in transformation of its industrial policy, which is designed to help the EU to overcome the gap with competitors in technology and innovation, as well as to set new standards for the functioning of industrial sectors in the conditions of greening and digitalization. The basic principles of building the strategic value chains are considered. The method of lifecycle analysis is used, as well as the theoretical basis of research on economic policy in new industries. Among the main principles on which support measures for new industries are based, we highlight the desire to ensure the legal and regulatory dominance of the EU, the desire for maximum transparency of business processes, the emphasis on the complex systemic effect for the entire European economy. The analysis of new projects implemented in the EU is conducted using the empirical base from the battery industry. The analysis includes the new instruments of industrial policy – Important Projects of the Common European Interest and others. An attempt has been made to assess the effectiveness of these mechanisms. It has been shown that the value-added chain of automotive batteries currently being built in the EU is not fully European, and dependence on suppliers of raw materials and services from third countries persists. The EU production spots are concentrated mostly in the middle parts of the value chain – like cell production and battery assembly. This configuration allows for regulatory opportunities in the industry, giving an advantage to European companies with extensive experience in measuring and reducing the climate footprint of their products. There are prerequisites for the involvement of a large number of small business players in the new chains and an increased diffusion of innovation. In addition, the EU is successfully addressing the challenge of demonstrating the potential of its Green Deal and increasing consumer confidence in new products.

Keywords: European Union, battery industry, value chains, electric vehicles, battery alliance, innovation diffusion


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For citation:
Nevskaya A. European Union Building Strategic Value Chains: the Case of Battery Industry. World Eonomy and International Relations, 2021, vol. 65, no. 12, pp. 109-117. https://doi.org/10.20542/0131-2227-2021-65-12-109-117



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