How to jump into the broken value chains?
I am wondering in what way are you trying to jump into the broken value chains and replace the Far East suppliers? Any good practices?
I am also curious if in your countries the debates about promoting local economy, local entrepreneurs are becoming more popular in the recent months? In what way are your governments supporting local entrepreneurs more than the foreign ones? Any campaigns, debates, programs, facilities, .... ?
Replies
Disruptions in value chains
Dear Bartosz,
these are indeed very relevant questions. European institutions, national governments, and regional stakeholders are working hard to answer them. Of course, there have also been some immediate responses, for example to provide hospitals and the population with face masks. All over Europe, local actors and companies redirected their resources to 3D print needed personal protective equipment.
I would like to point out some of current actions to tackle these questions:
Recovery plan for Europe
The European Commission adopted a major recovery plan for Europe based on harnessing the full potential of the EU budget yesterday. The Commission is mobilising different instruments to provide funding. Their website gives a good overview: https://ec.europa.eu/info/live-work-travel-eu/health/coronavirus-response/recovery-plan-europe_en
Redirection of Structural Funds
There have been a series of amendments to the European Regional Development Fund, allowing support for working capital for SMEs and giving flexibility to use the funding for a variety of products and services. The European Alliance Against Coronavirus had a session on these changes, if you would like to review them: https://www.clustercollaboration.eu/forum/european-alliance-against-coronavirus-daily-meetings/changes-european
Identification of the disruptions in value chains
Currently, the European Alliance Against Coronavirus is dedicating their work to identifying the exact disruptions in order to find the right solutions you are referring to. The disruptions are being discussed based on the industrial ecosystems defined by the Commission in their recovery plan. Here is the list of the upcoming sessions and topics: https://www.clustercollaboration.eu/forum/european-alliance-against-coronavirus-daily-meetings/european-alliance
Do you know about a particular disrupted value chain?
How to jump into the broken value chains?
For example, Romania considers that it could take advantage of an international economic context in which it could be a pole of attraction for substantial relocations of production facilities from certain countries. Romania is ready to provide very good conditions to attract those companies willing to relocate their production facilities, and received signals in this respect, the PM said, adding that relocations could be an engine for growth. The Romanian Government considers that investments are critical to economic recovery, and announced that a mechanism would bet set up in the coming period, to guarantee the working capital and investments of big companies, after the model of SMEs Invest program, which allows SMEs to take out loans to ensure their liquidities.