Enterprise Europe 2004

ISSN 1680-0516
16 ????????????????
Enterprise policy news and reviews
Published by the European Commission’s Enterprise Directorate-General
July–September 2004
ENTERPRISE POLICY
Erkki Liikanen interview
SMEs
New Charter milestone
NEW ECONOMY
Raising standards for services

INDUSTRY
Better medicines for children
GLOBAL MARKETPLACE
China’s changing face
Heading towards
a hydrogen economy
European
PAGES 7 TO 9
Commission

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July-September 2004
ISSN 1680-0516
EDITORIAL
July–September 2004
SUSTAINABLE DEVELOPMENT
Fostering structural change
3
Tyres to tread more softly
ENTERPRISE POLICY
Erkki Liikanen interview
in future
16
ENTERPRISE POLICY
SMEs
SME Charter milestone
Interview with Erkki Liikanen
4
NEW ECONOMY
GLOBAL MARKETPLACE
Raising standards for services
INDUSTRY
China’s changing face
18
Better medicines for children
GLOBAL MARKETPLACE
Preparing for the next
FACING THE FUTURE
China’s changing face
enlargement
20
Heading towards
a hydrogen economy
7
Heading towards
FOR THE RECORD
a hydrogen economy
SMEs
European
PAGES 7 TO 9
Commission
Training and coaching SMEs 22
New milestone for
Sustainable development for
Small Enterprise Charter
10
Guided by GM’s Carl Peter
Europe’s leather industry
22
Forster, Commissioner Ján
Innovation Relay Centres
NEW ECONOMY
move up a gear
23
A platform to raise
Figel’ drives the fuel cell car
standards for services
12
HydroGen3 during the Brussels
stop on its recent 10,000 km
INDUSTRY
marathon that provided a
Guaranteeing better
medicines for children
14
glimpse of the potential of the
hydrogen economy (page 7).
Publishing
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Photographs for this edition were (SC15-1/161)
supplied by Thierry Monasse, Alain B-1049 Brussels
Dereymaeker, Robert Ghement, Vassil Fax (32-2) 29-91926
Donev, Paul Kan, IStockPro, Photos.
com, Jose Irun, DaimlerChrysler AG © European Communities, 2004
and the European Commission.
Reproduction is authorised, provided the source is acknowledged.
Illustration by Edouard Aronson.
Catalogue No: NB-BH-04-016-EN-C
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Enterprise EUROPE No 16 | July–September 2004

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E d i t o r i a l
Fostering structural change
in tyre manufacture through Commission encouragement
achieving greater environ- of standardisation in services
mental protection (page 16). will lead to both services and
Similarly, measures to improve manufacturing increasing the
paediatric medicine will stim- effectiveness of their partnership
ulate research and develop- (page 12).
Commission
ment, in the pharmaceutical
European
industry (page 14). Making As he approaches the end of
©
O
the EU more attractive for his mandate, Commissioner
ver
400
people R&D activities is crucial both Liikanen, interviewed in the
attended the industrial to future competitiveness and following article, recounts
policy conference held in discouraging relocation.
his satisfaction at seeing the
by the Enterprise Directorate-
acceptance of the concept of
General at the end of May, Though the growth in output competitiveness as the key
demonstrating the keen inter- and productivity over the last to sustainable development.
est felt by a wide range of twenty years belies the nega- I share that satisfaction, and see
stakeholders. This should not tive indicators that make the it underpinning an intensified
be surprising. Despite talk of a headlines, we need to remain dialogue with industry stake-
‘post-industrial society’, manu- vigilant regarding the compet- holders in the years to come as
facturing not only remains itiveness of our industry, relative we find ways of fostering the
central to European economic not only to the US, but also to structural changes necessary
activity, but the debate on its our emerging competitors in for increasing the value added
future is highly relevant to all the East. China’s economy is by European industry.
sectors. The Communication becoming increasingly sophis-
adopted by the Commission ticated, which both facilitates
in April, ‘Fostering Structural our trading partnership, but
Change: an industrial policy offers an increasing chal-
for an enlarged Europe’, not lenge to EU industry (page 18).
only underlines the renewed
JEAN-PAUL MINGASSON
importance of industrial policy, When commentators emphasise
Director General for Enterprise
but renews the debate in a the ‘service economy’, they often
wider context.
overlook the inter-dependence
of services and manufacturing
This issue of Enterprise Europe that is crucial to maintaining
situates two industries in competitiveness overall. Many
that wider context – where processes that were tradition-
Commission initiatives in ally handled internally by large
relation to other areas can manufacturing concerns are
impact industry positively. now outsourced to external
The automotive industry is suppliers – one explanation
highlighted on the one hand for the decline in manufac-
as the key force in developing turing jobs. But the service
a hydrogen economy (page 7) sector often does not enjoy as
and, on the other, as gain- high growth in productivity

europa.eu.int/comm/enterprise/events/
ing competitive advantage as industry. It is hoped that
industrial_policy/index.htm
Enterprise EUROPE No 16 |
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July–September 2004

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E n t e r p r i s e p o l i c y
As Erkki Liikanen prepares for a career
change after 14 years in Brussels,
he spoke to Enterprise Europe about
his experience as Commissioner for
Enterprise and Information Society.
asse
Mon
Thierry
©
Erkki Liikanen:
Asked to describe the
personal
highlight
of
his second Commission
mandate, Mr Liikanen answers
immediately.
putting competitiveness
‘Putting competitiveness back on
the agenda has given me enormous
firmly on the agenda satisfaction. Nobody questions it
now. When we started five years
ago, people said “Oh, you are just
standing up for industry.” Now,
it is accepted conceptually that if
you are to achieve sustainable
development, you need to have
a strong, competitive economy.
This focus will stay for the
next Commission, I am totally
convinced,’ he says.
The challenge of placing competi-
tiveness centre stage was not easy.
In his previous post in charge
of the institution’s budget, staff
and administration, Mr Liikanen
could apply practical leverage
over his colleagues. When he
4
Enterprise EUROPE No 16 | July–September 2004

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E n t e r p r i s e p o l i c y
took on enterprise policy, those individual sectors, against the complaining how ugly parts of
levers disappeared.
broader backdrop of stimulating a Brussels were with their building
competitive European economy, sites and unimaginative office
‘Before, I always had something has been another source of satis- blocks. ‘Mais, cherchez le bijou,
to squeeze and that made it easier faction. It has meant mastering Monsieur,’ they replied, refer-
for people to cooperate. Here, minutiae and working closely ring to the architectural gems
I had to convince and use basic with the business community, of the city.
arguments. The first two years NGOs and trade unions.
were very difficult because the
Mr Liikanen has ensured that enter-
importance of the competitive-
prise policy has done just that as it
ness pillar in the overall balance
We must create conditions has carefully taken into account
of policy-making was not evident
the specific features of individual
to everyone. Now, this is much
for European industry
sectors. Over the past five years,
better understood and the fact
tailor-made measures are either
that there is a Competitiveness
to be competitive,
in place, or being developed, for
Council is very important,’ he
a range of industries: pharma-
explains.
to have high productivity
ceutical, chemical, shipbuilding,
aerospace, textiles and biotech-
‘Previously, industry, research
and higher value added.
nology, to name but a few.
and internal market ministers met
in separate Councils. Today, the
As part of that competitiveness
Competitiveness Council is a ‘Here, you must go into every analysis, different task forces
great step forward, but it must detail, and I like that. We have and high level groups, bringing
also establish its credentials. to be very careful because any together key stakeholders, have
For
example,
it
is
the mistake may cost an enormous been established to examine the
Competitiveness Council which amount of money. While the challenges facing each industry.
must strike a balance between macro-economy is important,
enterprise
and
sustainable we must not forget that GDP ‘The idea is that we launch
development concerns, as it is comes from individual sectors. the project, develop a strategy
doing with the Commission’s For some time, there was a belief and then implement it. These
REACH proposals reforming the that horizontal conditions were groups are not eternal. Once
EU’s chemical legislation.’
sufficient. They are necessary, the task is completed, we go on
but not enough,’ he says.
to the next. What is critical here
The Commissioner has not been shy
is that we must have the right
in promoting the rights of European To emphasise the importance balance between horizontal and
manufacturing industry, while also of attention to detail, he recalls sectoral measures,’ he insists.
reminding it of its responsibility the advice he received from
to the environment and good Belgian architects whom he had Having taken over a newly
corporate social practice.
upset in a televised debate by created department five years
ago, the outgoing Commissioner
‘We must talk with pride about
is confident he is leaving behind
European industry. It is part of
a Directorate-General imbued
our patrimoine. We must create
with a strong enterprise culture
conditions for it to be competi-
and an established and open
tive, to have high productivity,
way of working.
higher value added and the
right regulatory framework.
‘We now have three pillars on
Otherwise we cannot compete,
which our policies are based. The
not just with the US, but also
first is a rigorous analysis of the
with emerging Asian powers.’
competitiveness of the European
economy, followed by action if it
Focussing on the detail
is needed. Secondly, a regulatory
framework, that is pro-competi-
asse
For a politician used to broad,
tive, and thirdly, the promotion
Mon
horizontal subjects, dealing with
of entrepreneurship, innovation
Thierry
the specific challenges facing ©
and research,’ he explains.
Enterprise EUROPE No 16 |
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July–September 2004

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E n t e r p r i s e p o l i c y
Consultation is today a central Newspaper headlines may have corner. Sustainability has three
feature of the Commission’s missed them, but he points to pillars. You are responsible for
regulatory practice and stake- areas where significant progress competitiveness. Be strong in
holders are encouraged, not just has been made in the past five analysis, rigorous in regulatory
to provide their input to Brussels years. The most identifiable intervention and very encouraging
meetings, but also to raise their is electronic communications towards innovation.’
voices at home to influence the
European agenda.
He also has a firm opinion on
the experiment of the past five
Pursuing the Lisbon strategy
years of locating Commissioners
with their individual depart-
The Commissioner rejects broad
ments, instead of together in
brush criticism that the Union
one building as in the past.
is failing to reach its goal of
being the most competitive
‘It has been a good experience
knowledge-based
economy
to work here. But when there
by 2010 – dubbed the Lisbon
are 25 Commissioners, with ten
strategy. ‘The problem is that
from new countries, I think it is
one slogan – the idea of being
better to be together, but on
the most competitive – has
one condition: all the regular
asse
completely dominated the
meetings with the staff should
Mon
whole discussion. You need to
take place in the buildings where
Thierry
©
be more precise and under-
they are based.’
stand the full scope of Lisbon,’
he insists.
where, as a result of legislation And how can the EU’s enlarge-
and liberalisation, markets are ment work to everyone’s
He points out that in his port- more competitive and prices are benefit?
folios where there are clear falling. In broadband, Europe
targets, these are being met. is growing faster than the US ‘The challenge for us is that
Yet, he acknowledges that as with 50,000 new lines being wage levels in the new Member
conditions change, the Union connected every day.
States are lower and investment
should be ready to readjust its
will be higher, so their productivity
policies.
Entrepreneurship is now firmly will be very strong. The risk
on the Union’s agenda and red is that if we in the 15 are not
He gives two examples. When the tape has been cut, especially for more competitive, more invest-
process was launched in March people wishing to start up new ments will go to the ten. This
2000, the Union only measured companies. Good progress is is good for Europe as a whole,
itself against the US and Japan. being made integrating entre-
but it creates problems for the
China and India were not an preneurship into school and regions and sectors left behind.
issue. They are now. Secondly, university curricula. However, The best way for both is for the
largely due to the absence of there is general recognition 15 to invest more in research
data, the whole issue of produc- that more must still be done, and development, innovation
tivity and its relationship with for example, modernising and productivity and then we
information and communication bankruptcy laws and making can diversify,’ he concludes.
technology was not fully under- it easier to transfer small
stood four years ago.
businesses.
‘You need to invest in ICT, but Looking ahead
you also need to reorganise the
way companies and adminis- Asked if he has any words of
trations work and to invest in advice for his successor, Mr
skills. We now understand that Liikanen says: ‘Be conceptually
all these things must be done clear. Remember we are here
and we are trying to give input to defend the competitiveness
to that debate in our follow-up of European industries and
reports,’ he says.
enterprises and to fight that
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Enterprise EUROPE No 16 | July–September 2004

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F a c i n g t h e f u t u r e
Will hydrogen one day
be used to fuel our cars
and heat our homes?
Considerable progress is
being made in developing
the technology. But more
research is required to
ensure the optimum use
Dereymaeker
Alain
of the new energy carrier.
©
The European Commission
is lending its weight to
the process by creating
a multidisciplinary
Heading towards a
group to examine all
aspects of a hydrogen
hydrogen economy
economy, including
the infrastructure, and
would help Europe enjoy greater
financing the preparation
security of supply, while reducing
of the international
Earlier this summer, a
hydrogen-powered car drove
10,000 km from Hammerfest the emission of damaging green-
in Norway, Europe’s most northerly house gases.
town, to Lisbon, its most westerly
standards it will require.
city. The symbolic marathon With their low noise, high power
journey across the continent quality and overall efficiency,
had two main aims.
fuel cell systems have many
potential portable or fixed uses.
It provided a practical test on These range from cars, buses
public roads of the reliability and boats through heat and
and durability of the latest fuel power generators, hospitals and
cell vehicle. With stopovers in IT centres even to mobile phones
major cities it also offered the and laptop computers.
public and decision makers a
glimpse of the potential of the The goal of sustainable energy
hydrogen economy.
But there is a long way to go
Employing hydrogen as an before the technological break-
energy carrier could lead to a throughs now emerging become
significant decrease in dependency part of the fabric of our daily
on fossil fuels, such as oil which lives and hydrogen is able to help
pollute the environment and are meet, in an environmentally-
concentrated in a relatively friendly way, the dramatic surge
small number of countries. This in energy demand that comes
Enterprise EUROPE No 16 |
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July–September 2004

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F a c i n g t h e f u t u r e
to hydrogen use would cost
Hydrogen
Fuel Cell
between € 10-12 billion. And,
Tanks
Supply
Fuel Cells
to be competitive with existing
Air
fuels, some 450 vehicles would
Conditioning
need to use each converted
station.
Thought is also being given to
finding the platinum which the
fuel cells will require. At the
moment, the amount required
for one million cars would be
greater than current annual
production, 75% of which takes
AG
place in South Africa.
DaimlerChrysler
Electric
Auxiliary
Standardisation is crucial
©
Transmission
Motor
Components
The transition to the hydrogen
economy requires the introduc-
Stockholm, London, Luxembourg, Hamburg, Amsterdam, Stuttgart, Porto, Madrid and Barcelona are
participating in the Clean Urban Transport for Europe (CUTE) project running buses using this technology.
tion and maintenance of a vast
infrastructure for producing
from a growing, and more Hydrogen can be produced from and distributing the new form
affluent, world population.
a variety of sources such as wind of energy. This can only be
and solar power, natural gas, achieved if the equipment used is
Hydrogen represents a bridge to fossil fuels, biomass and even interoperable, safe, user-friendly
a sustainable energy future, but it as a by-product in a number of and contains the most up-to-date
is also a revolutionary technology chemical production processes. technical know-how.
that would lead to major changes Currently, some 45 million
in the way we produce, distribute tonnes a year are produced Standardisation of interfaces
and use energy. Complex transition worldwide, primarily for fertilisers between the different modules,
strategies have to be worked through and refining crude oil.
for instance, and of indicators
and the whole process will involve
to measure performance and
heavy investment and consensus- However, considerably more basic security levels, is a top priority
building between key players.
research is required to determine for researchers in this area and
which production method is provides the only way to meet
To provide a framework for the most environmentally and the essential compatibility and
preparing these strategies and economically friendly and to safety requirements.
to prepare for the obstacles devise the best way of harnessing
ahead, the Commission set up hydrogen’s potential.
The creation of agreed termino-
the European Hydrogen and Fuel
logy and a standardised infra-
Cell Technology Platform last In parallel, the platform is exam- structure will make life easier for
December. The multidisciplinary ining practical ways of delivering the general public and industry
body is a forum for representatives hydrogen fuel cells and iden- alike and will significantly
from the worlds of industry, tifying the uses to which they reduce
manufacturing
and
energy, environment, research could be put. This raises basic storage costs. It will also ensure
and science to pool their expertise issues such as distribution and that components produced in
in drafting a blueprint to bring storage systems, any potential different countries may be used
Europe from a fossil-fuel to a dangers and careful examination alongside each other and that
hydrogen economy.
of the sectors where demand distribution networks can be
and the environmental benefits integrated.
Two paths guide the platform’s are likely to be greatest.
work: a strategic research agenda
The Commission has issued
and a deployment strategy. In For instance, it is estimated that a mandate to the European
this context, standardisation is a to convert 10% of the 135,000 standards organisations CEN,
key issue for industry.
filling stations in the Union CENELEC and ETSI concerning
8
Enterprise EUROPE No 16 | July–September 2004

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F a c i n g t h e f u t u r e
the elaboration of a feasibility Global consensus indispensable
internationally in developing the
study on the current situation
hydrogen economy.
and future needs of standardisa- The exercise involves the widest
tion activities in the area of possible range of interest groups, That commitment to work
hydrogen and fuel cell tech- notably international standards together was further strength-
nology, at both European and bodies, regulatory authorities, users, ened in November 2003, when
international levels.
environmental organisations and the International Partnership for a
representatives from the manufac- Hydrogen Economy was launched,
In cooperation with industry, turing and energy supply industries. bringing together the European
research institutions and other
Commission and 15 countries,
standardisation stakeholders, The US and Japan are also including the United States,
they are now taking stock heavily involved in research into Canada, Russia, India, Japan,
of the different moves being the hydrogen economy. They, China, and several EU members.
made towards standardisa- like Europe, India, China and
tion of hydrogen and fuel cell other countries are likely to be Europe can meet this global
technology and assessing the big hydrogen consumers, too. challenge only if it speaks with
potential for further measures Thus, it is essential that there be one voice and pursues and
to ensure that the techniques international cooperation in the implements its strategic agenda
can be used on as wide a scale move towards the new economy, on the hydrogen economy. This
as possible. This will lead to the especially in the development of will require strong and coordi-
presentation of recommenda- globally accepted standards.
nated involvement by European
tions next year on further
stakeholders in the international
priorities and a roadmap for the Those contacts are already being standardisation process.
EU’s contribution to European made. Hydrogen was one of the
and
international
stand- subjects on the agenda of the Policy initiatives can help set
ards. Further standardisation EU-US summit in June 2003. agendas that reach towards
mandates in the sector may In a joint statement, the two these common goals. But they
follow.
partners agreed to collaborate cannot replace the commitment
and enthusiasm of private stake-
holders in delivering positive
Hydrogen represents a bridge to a sustainable energy results. The hydrogen economy
will only become a reality if
future, but it is also a revolutionary technology
all concerned in developing and
that would lead to major changes in the way
benefiting from it cooperate.
That will require enterprises,
we produce, distribute and use energy.
consumer associations, standard-
isation organisations and public
authorities to work together to
SOFC for local supply
Solar thermal
Wind turbine
Biomass
of hot water and
achieve common international
heat for households
solutions.
Hydropower
ALEXANDRE D’ANGELO, ZACHARIAS BILALIS
@ CONTACT:
A residential power
PV plant

Entr-Environment-Aspects@cec.eu.int
and heat supply with
Shipborne fuel-cells
PEM fuel cells
for propulsion, auxiliary power
Power supply
with MCFC of
H2 production plant
SOFC/combined-
cycle power
plants
Process heat and power supply for
processing industry
Hydrogen filling station
Natural gas
Commission
forum.europa.eu.int/Public/
Depleted gas well
irc/rtd/eurhydrofuelcellplat/
European
Deep saline acquifer
©
library
Enterprise EUROPE No 16 |
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July–September 2004

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S M E s
*
*
Aronson
Edouard
©
New milestone for
Small Enterprise Charter
No fewer than 34 countries now subscribe to the ‘think small first’ principle of the
European Charter for Small Enterprises. They were almost all represented at a major
conference in Dublin at the end of June to exchange examples of good practice
and set out the way ahead.
to government departments small businesses as national
and business organisations to
In the space of just four years
since its launch, the European
representatives reported on the
Charter for Small Enterprises learn from their counterparts practical measures they have
has established itself as a highly elsewhere. This helps identify introduced.
effective policy instrument for problems in the first instance,
improving the business climate inspires possible solutions and With major emphasis on learning
for small and medium-sized even kindles friendly rivalry to from each other’s success stories,
companies.
avoid being seen as the last ship the conference examined in detail
in the convoy.
two dozen different experiences
By focusing on the different national
identified as good practices in the
and European influences that impact The presence of all 25 Member previous year. It concentrated on
on small enterprises, the Charter States together on an equal the following three priority areas
helps to concentrate the attention footing for the first time at the selected from the ten contained
of policy makers on the need for Dublin conference represented in the Charter:
continuous improvements.
a new milestone in the Charter’s • consultation of small businesses,
development. It also gave further • access to finance, and
One of the keys to its success momentum to the process of • innovation and technology
is the opportunity it provides supporting and encouraging
transfer.
* Candidate Countries BEST Conference, Maribor (Slovenia), 23 - 24 April, 2002. Conference on the Implementation of the European Charter for Small Enterprises
in the Candidate Countries, Tallinn (Estonia) September 30 - October 1, 2003.
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