EU manufacturing has lost ground due to the low growth of the EU domestic economy and its diminished participation in…
global manufacturing value chains. EU industry is facing different transitions at the same time, including the digital transformation and the transition towards a net zero emission and circular economy. Developing technologies, products and solutions for this while having access to finance, resources and human capital equipped with the right skills are amongst the huge challenges to be overcome in the next decade. This implies the need for new business models and actors to ensure future competitiveness and employment. These competitive pressures challenge the EU as leading innovator in the world, which in turn is crucial for future industrial competitiveness. From the policy side, a more integrated approach to industrial, innovation and regional policies is necessary to trigger successful industrial transformation.
In this environment, conventional economic analyses have shown limited usefulness. Indeed, Complex System analysis has highlighted since the '80s the limitation of conventional economic analyses to identify hidden trends in complex environments (Anderson, Arrow and Pines 1987). Economic Complexity is an alternative, non-conventional bottom-up and data-driven approach inspired by statistical physics and complex systems science. By producing quantitative, falsifiable results and relationships, it has great potential in the analysis of the current challenges in Innovation Systems.