EU Science Hub

Industrial innovation for transformation: New science & policy insights

  • This article introduces the main challenges, the latest scientific evidence and policy issues, and the science and policy areas for industrial innovation to be further developed, and the role of industrial innovation in sustainability and prosperity in Europe.
  • New innovations and integrated production structures need updated management practices. Territorial and economic disparities and the performance heterogeneity of firms depend on the differences in innovation diffusion and adoption rates.
  • Mixed consequences on the labour force and structural inequalities arise out of advanced digitalisation, while sustainable technologies may have a significant positive impact on employment and industrial composition.
  • Disruptive transformative EU policies should be set up to trigger the exploration of innovation with the highest possible economic, social, and employment returns. These should also be able to attract industrial investment.