A current trend in crisis-laden Europe is de-industrialisation. The European Union has launched ambitious policies and proposed a new research and innovation framework programme, Horizon 2020, to counter this trend and to foster innovation in manufacturing. The paper highlights the key issues related to this upcoming programme. R&D and innovation efforts, however, need to be underpinned by smart policies that in particular link up relevant R&D and innovation strategies at regional, national and European level and offer incentives for growth and differentiation as well as for leveraging private investment.
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