Renda, And ea
A icle
The T iple T ansi ion and he Dawn o Quan um
Policymaking
In e economics
Sugges ed Ci a ion: Renda, And ea (2025) : The T iple T ansi ion and he Dawn o Quan um
Policymaking, In e economics, ISSN 1613-964X, Sciendo, Wa saw, Vol. 60, Iss. 1, pp. 5-10,
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ZBW – Leibniz In o ma ion Cen e o Economics 5
Fo um
And ea Renda
The T iple T ansi ion and he Dawn o Quan um Policymaking
© The Au ho (s) 2025. Open Access: This a icle is dis ibu ed unde he
e ms o he C ea i e Commons A ibu ion 4.0 In e na ional License
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Open Access unding p o ided by ZBW – Leibniz In o ma ion Cen e
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In e economics, 2025, 60(1), 5-10
JEL: D78, E61, F68
DOI: 10.2478/ie-2025-0003
And ea Renda, Cen e o Eu opean Policy S udies,
B ussels, Belgium.
As we en e a new yea , i is c ucial o e lec on he
challenges o he pas and econside he ounda ions
o economic and public policy. The pas yea has aised
signi ican doub s o economis s and policymake s,
p omp ing he need o e hink hei app oaches o e ec-
i e policymaking – p ecisely he mission o hink anks
and policy jou nals.
The ole o schola s and policymake s has shi ed d a-
ma ically o e he las i e yea s. When he Eu opean
G een Deal launched in 2019, he p e ailing app oach
adhe ed o he Tinbe gen p inciple – ha we could o-
cus on one majo policy goal wi hou ha ing o conside
o he objec i es while wo king owa ds i . Deca bonisa-
ion, o example, was ea ed as an independen objec-
i e, wi h less ocus on po en ial ade-o s. Howe e ,
he eali y o mode n policymaking is a mo e complex.
T ade-o s a e now an una oidable and immedia e con-
ce n o policymake s, making i essen ial o mo e be-
yond simplis ic, goal-d i en amewo ks.
F om linea policymaking o quan um policymaking
T adi ional economic policymaking has long been guid-
ed by p inciples such as cos -bene i analysis, GDP
g ow h and ma ke ailu e co ec ion. While hese me h-
ods ha e shaped egula o y app oaches wo ldwide,
hey o en ail o accoun o dis ibu ional and e i o-
ial impac s. Economis s ha e ypically mone ised cos s
and bene i s, calcula ed ne p esen alues and selec ed
policy op ions based on maximised e iciency. Howe e ,
his na ow ocus is inc easingly insu icien in an e a o
unp edic able mac oeconomic shocks and global go -
e nance complexi ies.
One majo limi a ion o adi ional policymaking is i s e-
liance on a single u u e p ojec ion – ex apola ing he
p esen in o he u u e wi hou accoun ing o po en ial
dis up ions. Policies a e o en designed o long- e m
implemen a ion wi hou adequa e mechanisms o
adap abili y. Addi ionally, EU policymaking has adi ion-
ally aken a b oad, union-wide pe spec i e, o en o e -
looking he speci ic e i o ial impac s o egula ions.
While ecen impac assessmen s ha e acknowledged
hese conce ns, many legacy app oaches pe sis wi hin
he Eu opean Commission.
The p e e ence o cos -bene i analysis emains s ong,
la gely because i p o ides a con olled and quan i iable
amewo k o decision-making. Howe e , al e na i e
app oaches, such as mul i-c i e ia analysis, o e mo e
nuanced and adap i e s a egies o e alua ing policy
decisions. O e ime, shi ing pa adigms ha e ecog-
nised he inc easing complexi y o economic eali y. A
singula ocus on GDP g ow h o economic e iciency no
longe su ices as he sole objec i e o policymaking.
The global policy landscape has al eady begun o
e ol e. Many coun ies ha e adap ed he egula o y
impac analysis model, o iginally de eloped unde he
Reagan Adminis a ion, o i hei na ional con ex s.
This g adual shi signals a b oade ecogni ion ha
economic policymaking mus go beyond igid e iciency
models and inco po a e mo e comp ehensi e, adap -
able amewo ks. The challenge ahead lies in in eg a ing
hese new app oaches in o mains eam policy discus-
sions, ensu ing ha economic decision-making e lec s
he mul i ace ed eali ies o go e nance in a apidly
changing wo ld.
The implemen a ion o egula ion as a bluep in o
public policy has expanded globally, in luencing legis-
la i e p ocesses in pa liamen s and cong esses. A he
EU le el, cos -bene i analysis – o iginally designed o
ede al egula ion in he Uni ed S a es – was applied
o di ec i es such as he Bolkes ein Di ec i e and asy-
lum- ela ed legisla ion. F om he ea ly 2000s o a ound
2015-16, he e was a clea me hodological misma ch,
as ools we e used in con ex s o which hey we e no
designed.
Goals-based s a egies
A majo shi in public policy heo y has been he shi
om pu ely expanding economic g ow h, as pe he
Washing on Consensus, o a goal-based s a egy. P e i-
In e economics 2025 | 1
6
Fo um
ously, he ocus was on educing cos s and d i ing GDP
g ow h h ough domes ic ma ke s, ins i u ions, ech-
nology and inno a ion. Howe e , he Millennium De el-
opmen Goals and la e he Sus ainable De elopmen
Goals (SDGs) unde sco ed he need o b oade objec-
i es beyond g ow h alone.
Despi e his, he cu en he o ic s ill la gely e lec s
Washing on Consensus p inciples. The 2023 S a e o
he Union speech by U sula on de Leyen, o ins ance,
ocused on cos minimisa ion and g ow h, wi h limi ed
men ion o deca bonisa ion. This e lec s a b oade un-
ce ain y abou he di ec ion o policy.
The shi owa ds goal-based policymaking aims o c e-
a e a clea ision, ollowed by speci ic ac ions o achie e
i . The EU has a emp ed his app oach, albei inconsis -
en ly. The Lisbon S a egy, launched wi h he ambi ious
goal o making Eu ope he mos compe i i e knowledge-
based economy, was la e e ised p agma ically o o-
cus on g ow h and jobs. The Eu ope 2020 s a egy aced
challenges due o inancial and so e eign deb c ises,
leading o i s g adual decline. In 2015, he SDGs p o id-
ed a new amewo k, ollowed in 2019 by ini ia i es such
as he G een Deal and Digi al Decade.
Howe e , se ing b oad policy goals wi hou accoun ing
o e ol ing eali ies can be p oblema ic. The SDGs we e
in ended o be in eg a ed and indi isible, ye EU policies
like he G een Deal ha e selec i ely p io i ised ce ain
elemen s while neglec ing o he s, such as s ong ins i u-
ions, e i o ial and social impac s, and human capi al.
This selec i e app oach c ea es gaps in he b oade i-
sion o sus ainable de elopmen .
As policymake s now wo k o ede ine medium- e m
goals, compe i i eness has eme ged as a po en ial cen-
al ocus. Howe e , ques ions emain: Can compe i-
i eness be econciled wi h mul iple policy objec i es?
Should i be he sole p io i y? As o Decembe 2024,
he e is no clea consensus among policymake s and
schola s.
Na iga ing unce ain y: Re hinking policymaking o
p epa e o u u e shocks and c ises
An icipa ing u u e shocks is c ucial o e ec i e poli-
cymaking, ye his conside a ion emains absen om
adi ional pa adigms. In an e a ha some op imis s call
a “polyc isis” and pessimis s e m a “pe mac isis,” poli-
cymake s mus adap o unce ain y a he han ely on
igid long- e m plans. The challenge ahead lies in de-
eloping policy amewo ks ha emain lexible and e-
sponsi e o an unp edic able global landscape.
In he ace o unp edic able shocks, policymake s mus
conside he cascading e ec s ha could ollow, e en i
hese ou comes a e di icul o o esee. A co e p ac ice
in o esigh is imagining a ious po en ial u u es and he
consequences o such e en s, which may ange om
ca as ophic o mo e manageable scena ios. One p ess-
ing ques ion is whe he o p io i ise p epa a ion o he
wo s -case scena ios, despi e hei lowe likelihood, in
o de o educe isk and sa egua d agains po en ial dis-
as e s.
Fo ins ance, Cass Suns ein, a p ominen igu e in
cos -bene i analysis and o me egula o y cza unde
he Obama adminis a ion, has p oposed a s a egy
o a oiding disas ous scena ios. In his book A e ing
Ca as ophe, Suns ein (2021) a gues o adop ion o
a “maximin” app oach, which ocuses on p o ec ing
agains he mos se e e ou comes, e en i hei p ob-
abili y is low. This app oach con as s wi h adi ional
cos -bene i analysis, which ypically weighs isks ac-
co ding o hei likelihood. In policymaking, we may
need o mo e beyond a single “baseline” u u e and
ins ead conside al e na i e scena ios. A policy op ion
ha wo ks bes in he mos likely u u e may pe o m
poo ly i unexpec ed shocks occu . The e o e, a sec-
ond-bes policy, which is less op imal in a linea scena -
io bu be e sui ed o al e na i e u u es, migh p o e
mo e obus in he long e m.
Expe s in isk analysis sugges ha we a e en e ing an
e a whe e shocks – whe he en i onmen al, digi al o
geopoli ical – a e becoming mo e equen and in e -
connec ed. The no ion o a single, isola ed c isis is be-
ing eplaced by a new no mal in which mul iple c ises
occu simul aneously, such as con lic s s e ching om
he Middle Eas and Sy ia o Uk aine. Jus o e a yea
ago, we could no ha e p edic ed he le el o ins abili y
we now ace, making long- e m o ecas ing e en mo e
challenging. In planning o 2028, o ins ance, many
expec ed s abili y, ye in e ospec , he pas ew yea s
ha e been ma ked by unp edic able e en s, including
pandemics and geopoli ical uphea al.
The unp edic abili y o he u u e is u he emphasised
in he ealm o echnological inno a ion. Conside he
apid e olu ion o a i icial in elligence (AI); when he Eu-
opean Commission i s wo ked on he AI Ac in 2020,
he landscape was as ly di e en , wi h no men ion o
ad anced models like GPT. By he ime he legisla ion
was inalised in 2023, new echnological ad ancemen s
had al eady eshaped he con e sa ion. The ull impli-
ca ions o AI de elopmen s by 2026 emain unce ain,
highligh ing he challenges o c a ing legisla ion ha
can keep pace wi h apid change. While some egula-
ZBW – Leibniz In o ma ion Cen e o Economics 7
Fo um
o y bodies, such as he Eu opean Medicines Agency,
ha e demons a ed an abili y o adap , his lexibili y is
no widesp ead ac oss he Commission.
Which “No h S a ”?
Ul ima ely, he u u e is inhe en ly unp edic able, and e-
lying on linea ex apola ion o he p esen is a lawed
s a egy. Policymake s mus accoun o a ange o po-
en ial u u es and be p epa ed o su p ises, emb acing
adap i e app oaches ha allow o lexibili y and esil-
ience in he ace o unce ain y.
O e he cou se o he on de Leyen Commission, I
decided o ack how o en he Eu opean Commis-
sion changed i s s a egic di ec ion. I ocused on o -
icial documen s, such as he indus ial policy e iew
om May 2021, which e ealed wo di e en de ini ions
o key concep s wi hin he same documen (Eu opean
Commission, 2021). This highligh s he shi ing p io i ies
wi hin he Commission, which began wi h a ocus on
s a egic au onomy and esilience, pa icula ly du ing
he pandemic. Wi h he onse o he wa in Uk aine, he
ocus shi ed owa ds economic and comp ehensi e
secu i y.
O iginally, he Commission amed i s e o s wi hin
he con ex o sus ainable de elopmen , add essing i
ac oss mul iple policy a eas such as egula ion, indus-
ial policy and o eign a ai s. Howe e , despi e hese
ambi ions, none o hese objec i es ha e been ully e-
alised. Mo e ecen ly, discussions ha e cen ed a ound
he g een, digi al and social ansi ions, bu he domi-
nan ocus emains on s ipping he e m “compe i i e-
ness” o i s quali ica ions, such as “sus ainable compe i-
i eness” o “compe i i e sus ainabili y”.
In discussions wi h se e al expe s, I asked whe he he
concep o compe i i eness in he EU includes esilience
o sus ainabili y. Despi e widesp ead in e es in deca -
bonisa ion as a c ucial aspec o u u e compe i i eness,
he Commission has no made signi ican p og ess on
his on . The ul ima e goal, I belie e, should be ocused
on well-being – speci ically people, plane and p ospe -
i y – as ou lined in EU ea ies, wi h hese being in e me-
dia e goals subjec o change o e ime.
In policymaking, we o en encoun e wha is e e ed
o as a “ ilemma”. One key example is he challenge o
achie ing compe i i eness alongside deca bonisa ion
and economic secu i y. As economis Dani Rod ik (2000)
sugges s, i may be possible o achie e wo o hese
goals, bu no all h ee simul aneously. Ma io D aghi’s
(2024) esponse was o p opose a he y budge – €800
billion annually – o po en ially make his wo k. Howe -
e , such esou ces a e unlikely o be a ailable gi en he
p essing need o alloca e unds o o he p io i ies, espe-
cially in he age o T ump 2.0.
As we look ahead, a di e en policy mix will likely eme ge
a he EU le el. In summa y, he key challenges we ace
a e e iden . Fi s , we ha e no ye lea ned o p epa e o
u u e shocks, no ha e we buil adap i e policies. The
ocus on SDGs has led o agmen a ion, as seen wi h
he eplacemen o he G een Deal wi h he Clean Indus-
ial Plan, which has no ully deli e ed on i s p omise.
Addi ionally, he e has been an o e emphasis on inno a-
ion as an end in i sel , a he han inno a ion ha aligns
wi h ou ul ima e goals.
Mo eo e , he equen shi ing o s a egic p io i ies
makes i di icul o main ain a clea di ec ion. In a me a-
pho ical sense, changing cou se e e y 15 minu es is like
na iga ing wi hou a consis en No h S a . The Commis-
sion has also ailed o add ess he dis ibu ional and e -
i o ial impac s o i s policies, some hing ha many now
ecognise as a mis ake.
As we en e an e a whe e economic decisions a e in-
c easingly complex, he assump ion o simple, linea
choices no longe holds. Economics, as adi ionally
unde s ood, assumes ha indi iduals’ well-being is in-
dependen o o he s, bu in eali y, well-being is in e -
dependen . This shi in hinking, oo ed in he wo ks
o economis s like Joseph Schumpe e and F ied ich
Hayek, signals a need o a mo e nuanced app oach o
public policy. The coming yea s will demand mo e lex-
ible and adap able s a egies, as he old models o eco-
nomics and policymaking no longe su ice.
Economics is he only social science ha ails o di ec -
ly in eg a e he social elemen in o i s me hodology. In
p ac ice, policy impac s a e a mo e complex han o -
en assumed. Each communi y o e i o y esponds o
ules and policies in di e en ways, in luenced by local
go e nance and communi y o ganisa ion. This became
e iden du ing he COVID-19 pandemic, whe e simila
es ic ions had as ly di e en e ec s depending on
how hey we e implemen ed a he local le el.
Re hinking policy moni o ing: Towa ds quan um policy-
making
Unde s anding hese a ying impac s equi es con inu-
ous moni o ing. To ensu e policies a e achie ing hei
in ended ou comes, he Eu opean Commission includes
e alua ion sec ions in i s policies. Howe e , he e is a
need o a mo e se ious, g anula app oach o policy
In e economics 2025 | 1
8
Fo um
moni o ing, ensu ing ha da a is p oduced and used e -
ec i ely o enable policy lea ning.
This is whe e “quan um policymaking” comes in o play.
In much he same way ha quan um physics explo es
en anglemen and supe posi ion, policy impac s a e
en angled and equi e cons an obse a ion. Policies
canno be unde s ood in isola ion; hey need o be moni-
o ed o e ime o assess whe he hey a e deli e ing he
desi ed esul s.
In e ms o policymaking, he EU mus ansi ion o goal-
based amewo ks. While he 2030 agenda is s ill ongo-
ing, he e is li le discussion abou wha comes nex .
The SDGs we e inalised en yea s ago, bu i emains
unclea wha he 2040 agenda migh look like. Al hough
he 2030 agenda is no ye ul illed, he ocus mus shi
owa ds well-being as he No h S a , wi h in e media e
goals aligned o his ision. These goals mus be con-
s an ly moni o ed and adjus ed i necessa y, acknowl-
edging ha policy impac s a e dynamic and in e de-
penden .
The shi owa ds goal-based policymaking con as s
wi h he adi ional ocus on ma ke ailu es. Ra he han
wai ing o ma ke s o ail, we need o p oac i ely pu -
sue legisla i e goals, guided by mul i-c i e ia analysis
and ade-o assessmen s. While cos -bene i analysis
is s ill use ul o ce ain egula o y ac s, i is no sui able
o goal-based policymaking, whe e c i e ia and goals
should align.
The adi ional Tinbe gen p inciple no longe applies. In-
s ead, mode n policymaking deals wi h mul iple ade-
o s, al e na i e u u es and he need o agile, dynamic
and mul i-s age app oaches. The ocus should be on
place-based inno a ion and policy-cen ed go e nance,
conside ing he unique needs and ci cums ances o di -
e en egions.
Take, o ins ance, indus ial policy. The concep o In-
dus y 4.0, which has been cen al o Eu opean policy
discussions o yea s, ocuses on digi al echnologies in
ac o ies and supply chains. Howe e , i o en o e looks
he social and en i onmen al dimensions. A shi o-
wa ds Indus y 5.0, which emphasises human-cen ed,
sus ainable and esilien indus ial ans o ma ion, is
necessa y. This app oach no only conside s echnolog-
ical ad ances bu also p io i ises jobs, he en i onmen
and b oade socie al impac s.
The adi ional app oach o indus ial ans o ma ion o -
en o e looks c ucial ac o s like en i onmen al impac ,
go e nance and e i o ial conce ns. As we deepen he
in eg a ion o digi al echnologies in indus ies, i is no
longe accep able o conside hese as a e hough s.
Ou policymaking mus ully accoun o he ade-o s
in ol ed in indus ial change, ensu ing ha sus ainabili y
and socie al impac s a e cen al o he p ocess.
Fo nea ly a decade, expe g oups wi hin he Eu opean
Commission, pa icula ly he expe g oup on he eco-
nomic and socie al impac o esea ch and inno a ion
(ESIR) in DG Resea ch and Inno a ion, ha e been p o-
ducing pape s on he economic and socie al impac s o
esea ch.1 These discussions ha e led o a b oade un-
de s anding o compe i i eness – one ha includes e-
sou ce and ma e ial e iciency and s ays wi hin plane a y
bounda ies. This iew has gained a en ion, pa icula ly
wi hin he Eu opean Commission and he Council, as a
mo e comp ehensi e way o hinking abou compe i i e-
ness. I aims no jus a economic g ow h bu a well-
being- ela ed ou comes, aligning wi h he EU’s ea y-
based goals.
To suppo his shi , new indica o s a e being de eloped
o measu e compe i i e sus ainabili y, wi h con ibu ions
om ins i u ions like Camb idge (Camb idge Ins i u e o
Sus ainabili y Leade ship, 2024) and he Join Resea ch
Cen e (Benczu e al., 2025). The goal is o es ablish a
mo e mul idimensional iew o compe i i eness, one ha
p io i ises well-being a he han na ow economic indica-
o s like income. This pe spec i e d aws on he u ili a ian
ounda ions o economics, which o iginally ocused on
well-being bu ha e since been skewed owa ds income
as a p oxy – a choice ha has been con en ious.
A u he example o his shi is he concep o mis-
sion-o ien ed policymaking. This app oach, gaining
ac ion in he UK unde he S a me go e nmen , o-
cuses on se ing b oad, sec o al goals. In he ield o AI,
o example, he EU has de ined c i e ia o “ us wo -
hy AI”, which includes espec o undamen al igh s
and o ien a ion owa ds socie al and en i onmen al
well-being.
The challenge, howe e , is ha many AI sys ems oday,
including GPT models, do no mee hese c i e ia. To
ensu e AI de elopmen aligns wi h socie al goals, poli-
cymake s mus inco po a e hese ade-o s in o bo h
design and egula ion.
1 h ps:// esea ch-and-inno a ion.ec.eu opa.eu/s a egy/suppo -
policy-making/shaping-eu- esea ch-and-inno a ion-policy/esi _
en#documen s.
ZBW – Leibniz In o ma ion Cen e o Economics 9
Fo um
The e i o ial dimension o polices
Finally, he e i o ial dimension o policy is becoming in-
c easingly impo an . Resea ch on he geog aphy o dis-
con en , led by igu es like And és Rod íguez-Pose, ex-
plo es how di e en egions ac oss he EU can achie e
inno a ion and compe i i eness based on hei unique
capabili ies. This eimagining o inno a ion policy o-
cuses on he specialisa ion o each egion, conside ing
i s po en ial o well-being alongside economic de elop-
men .
As echnologies become mo e sophis ica ed, hei p o-
duc ion ends o concen a e in geog aphical hubs. Fo
eme ging ields like quan um compu ing, success de-
pends on a combina ion o in as uc u e, skills and well-
de eloped inancial ma ke s. Add essing hese egional
dispa i ies is c i ical o ensu ing ha inno a ion bene i s
all a eas o socie y, no jus he hubs whe e ad anced
echnologies a e concen a ed.
In Eu ope, he de elopmen o ad anced echnologies,
pa icula ly AI, has become inc easingly geog aphi-
cally concen a ed. Fou main hubs – London, Pa is,
Eindho en and Munich – domina e he AI landscape,
wi h London leading by a . Howe e , hese hubs do
no collabo a e as closely as hey should. Ins ead, hey
o en look o Ame ican ins i u ions a he han wo king
oge he wi hin Eu ope. One p omising excep ion is he
eme ging pa ne ship be ween Belgium and he Ne he -
lands, which could po en ially c ea e a u u e Eu opean
Silicon Valley, d i en by companies like imec and ASML.
Howe e , policymake s ha e no ye ully ealised he
po en ial o hese collabo a ions, as e idenced by he
limi ed unding suppo om he Eu opean Commission
and na ional go e nmen s o key indus ial playe s like
imec.
This geog aphic concen a ion also has poli ical impli-
ca ions. Fo example, in he las F ench elec ion, a eas
ha o ed o a - igh pa ies la gely co esponded wi h
egions ou side hese echnological hubs, unde sco -
ing he poli ical discon en in egions ou side he main
u ban cen es. These pa e ns e lec he ac ha la ge
po ions o he economy and e i o y ha e been o e -
looked by policymake s, leading o p o es s om g oups
like uck d i e s and a me s who eel excluded om he
o mula ion o policies.
This issue is pa icula ly e iden when we model clima e
and en i onmen al policies. Such models mus go be-
yond basic en i onmen al impac assessmen s and con-
side e i o ial and dis ibu ional e ec s. They mus also
align wi h Eu ope’s echnological on ie . The challenge
oday is o balance hese mul i ace ed goals, which is
some hing schola s, esea che s and policymake s
need o suppo in o de o add ess he complexi ies o
mode n indus ial policy.
Rede ining compe i i eness: A long- e m ision o
sus ainable and inclusi e g ow h
The long- e m goals o public policy a e no me ely
abou compe i i eness, a poin emphasised in economic
heo y and public policy manuals. Ra he , compe i i e-
ness should be seen as an in e media e goal ha leads
o b oade objec i es, such as he p ese a ion o a i-
ous o ms o capi al, including en i onmen al and social
capi al. Some coun ies, like New Zealand and Sweden,
ha e al eady de ined such long- e m goals wi h speci ic
indica o s. In he EU, he e is g owing in e es in ex end-
ing he ime ame o policy e alua ion, mo ing beyond
sho poli ical cycles o conside a couple o decades.
This would allow o mo e obus and sus ained policy
de elopmen .
Once hese long- e m goals a e se , he EU can back-
cas o shape i s agenda, c ea ing indus ial ans-
o ma ion pa hways. These pa hways will need o be
lexible, eady o adap as eali ies change. As Eu ope
wo ks owa ds hese goals, i mus p epa e o u u e
shocks and ensu e ha policies can be adjus ed when
necessa y.
Mission-o ien ed inno a ion will play a key ole in his
p ocess. The EU mus blend i s compe i i eness und
and o he esou ces o suppo la ge-scale p ojec s
wi h clea socie al and economic objec i es. This ap-
p oach equi es ca e ul planning, including s ess es -
ing and egula upda es o si ua ional awa eness. While
his amewo k is s aigh o wa d in heo y, i s p ac ical
implemen a ion will be challenging, as i equi es align-
ing mul iple ins umen s owa ds common goals – a ask
ha has no always been achie ed.
Looking ahead, Eu ope can lea n om ecen de elop-
men s in he US, such as he In la ion Reduc ion Ac ,
which inco po a es employmen - ela ed condi ionali ies
alongside en i onmen al goals. This legisla ion has se
a p eceden o in eg a ing social objec i es in o indus-
ial policy, some hing ha he EU should conside as i
mo es o wa d.
Finally, unde s anding he economic geog aphy o Eu-
ope will be c ucial. No e e y egion can be expec -
ed o become a echnological hub like Cali o nia, and
policies mus ecognise he unique capabili ies o each
e i o y. The concep o egional inno a ion engines,
In e economics 2025 | 1
10
Fo um
Re e ences
Benczu , P., Bosko ic, A., Gio anni, E., Pagano, A. & Sando , A.-M.
(2025). Measu ing sus ainable and inclusi e wellbeing: a mul idimen-
sional dashboa d app oach. Eu opean Commission, Join Resea ch
Cen e. Publica ions O ice o he Eu opean Union.
Camb idge Ins i u e o Sus ainabili y Leade ship. (2024). 2024 Compe i i e
Sus ainabili y Index Shaping a new model o Eu opean compe i i eness
‘beyond D aghi’, Summa y o policymake s, Uni e si y o Camb idge.
D aghi, M. (2024). The Fu u e o Eu opean Compe i i eness – A compe i-
i eness s a egy o Eu ope. Eu opean Commission.
Eu opean Commission. (2021). Communica ion om he Commission
o he Eu opean Pa liamen , he Eu opean Council, he Council, he
Eu opean Economic and Social Commi ee and he Commi ee o
he Regions, Upda ing he 2020 New Indus ial S a egy: Building a
s onge Single Ma ke o Eu ope’s eco e y, COM(2021) 350 inal.
Rod ik, D. (2000). How Fa Will In e na ional Economic In eg a ion Go?
Jou nal o Economic Pe spec i es, 14(1), 177–186.
Suns ein, C. R. (2021). A e ing Ca as ophe: Decision Theo y o Co id-19,
Clima e Change, and Po en ial Disas e s o All Kinds. New Yo k Uni e -
si y P ess.
simila o he US app oach, could help os e de elop-
men in all pa s o Eu ope, a he han concen a ing
inno a ion in a ew selec a eas. This app oach would
ake in o accoun he legacy and specialisa ion o di -
e en egions, enabling each o con ibu e o Eu ope’s
b oade goals.
In conclusion, Eu ope mus emb ace a mo e p oac i e
and coo dina ed app oach o indus ial policy, balanc-
ing compe i i eness wi h well-being and sus ainabili y.
By lea ning om bo h successes and ailu es, he EU
can a oid he pi alls o eplica ing models ha may no
be sui able o he gi en con ex . Economic heo y and
public policy mus ise o mee he challenge, ensu ing
ha Eu ope emains compe i i e while secu ing a sus-
ainable and inclusi e u u e.
