Transnational integration in Europe and the reinvention of industrial policy in Spain

Abstract

At the turn of the century, writings on globalization were rife with worry that transnational integration will strip states of the ability to direct industrial development. More recent literature suggests that industrial policy is alive and well, if thoroughly reshaped by the changes in the organisation as well as regulation of the economy. This paper contributes to this burgeoning body of research by examining the transformation of industrial policy toward automotive industry in Spain from the start of its integration into the European Economic Community in the 1970s until today. It argues, first, that the claims about globalization restricting the ‘policy space’ of individual states tend to understate the extent to which policy decisions of developing countries had always been restricted by the international environment. Second, it shows how transnational integration not only takes away certain tools but also helps development of others. To make use of them, however, countries have to restructure their systems of industrial governance to make space for a more regionalized, collaborative, and competence-based instead of firm-based policy.

Keywords:

• Spain
• industrial policy
• transnational integration
• automotive industry

Notes

Disclosure statement

No potential conflict of interest was reported by the author.

Notes

1 Author’s calculations based on Eurostat International Trade Statistics.

2 Author’s calculations based on Eurostat and Amadeus databases. Three Spanish firms (Gestamp, CIE Automotive, and Grupo Antolin) are among top-100 global first-tier suppliers by sales (AutomotiveNews, 2018).

3 This was not true of all sectors. In fact, the most competitive Spanish products – agricultural products, textiles and garments – remained subject to high tariffs and quotas, to be reduced only after long phase-in periods.

4 Notable examples include the sale of truck manufacturer Motor Ibérica to Nissan (1987), SANTANA to Suzuki (1988), ENASA to FIAT (1990) and of the largest supplier of electrical components for motor vehicles, FEMSA, to Robert Bosch (1985).

5 These ‘disadvantaged’ areas are defined as predefined subnational statistical units with per capita GDP of less than 75% of the EU average.

6 This is supposed to be mediated by the regional policy rules that direct resources explicitly at the ‘disadvantaged’ regions (per capita GDP under 75% of EU average). However, initially at least all Spanish regions fell under this bar.

7 The Mercedes factory in Vittoria was opened in the 1970s, but until the expansion in 2000 it remained a boutique operation that assembled small runs of commercial vehicles and had few connections to the local firms.

8 The Plan for Technological and Industrial Modernization (Plan de Actuación Tecnológico Industrial – PATI) which subsidized trainings and upgrading of capital equipment, and Environmental Programme for Industry and Technology (Programa Industrial y Tecnológico Ambiental – PITMA) to minimize environmental impact and improve energy efficiency of the industry.

9 ANFAC (Asociación Española de Fabricantes de Automóviles y Camiones) is the association of vehicle makers, SERNAUTO (Asociación Española de Proveedores de Automoción) of the suppliers. Federation of Technology Centres is an association of nonprofit R&D bodies such as techno-parks, research centers, incubators, etc., which provide services to private companies. They are organized independently and can take a variety of legal forms, but must fulfil certain criteria to be recognized as Technology Centres, which then allows them to participate in public R&D programs (OECD, 2007).

10 The original group included the vice-president of the European Commission, as well as Commissioners for Transport and Environment; representatives of the ministries of environment, economy, industry and transport of five member states (UK, Germany, France, Italy and the Czech Republic); two MEPs; presidents of EU-level automotive associations, chief executives of Ford, Renault, Fiat and Volvo; and representatives of the Institute for European Environmental Policy, Fédération Internationale de ‘Automobile, and the European Metalworkers’ Federation.

11 These included BeLCar (Bench Learning in Cluster Management for the Automotive sector in European Regions) and TCAS (Transnational Clustering in the Automotive Sector) funded by the INNOVA FP 6 initiative; Network of Automotive Regions and Network of European Automotive Competence (NEAC), funded by the European Regional Development Fund, and I-CAR-O (Innovative Regional Strategies for the Sustainability of Employment in the European Automobile Industry), financed by the European Social Fund.

Additional information

Funding

The paper is based on research conducted as part of the project ‘Maximizing the Integration Capacity of the European Union (MAXCAP)’ which has received funding from the European Union’s Seventh Framework Programme for research, technological development, and demonstration [grant number 320115].

Notes on contributors

Vera Šćepanović

Vera Šćepanović is a university lecturer in European Union Studies at the History and International Studies Department, Institute for History of Leiden University. She received her PhD in political science from Central European University. Her research focuses on issues of development and industrial policy, labor relations and economic nationalism.