LINK
Constraints due to globalisation are claimed to be under-estimated whereas the violence of the shocks taken require longer recovery times.
Employment has dropped continuously over the last 24 months. In the last 6 months, INSEE - National Institute for Statistics and Economic Studies. indicates that unemployment has lowered on only 8 occasions while the level of economic activity has remained inferior to the level in 2008.
NB-REM:There are 4 levels of economic activity (link) the main reference used by INSEE in France is GDP.
R and D policies,(presumably government policies) Guilhon claims, are inappropriate to aim to support companies most exposed to international competition ie. small to middle sized companies are the ones that loose out, while the large companies preoccupied by rationalisation (presumably to increase efficiency and profit ) and implantation close to large attractive markets allocate increasing investment R and D out with Europe (I suppose this means truly democratic Europe, the European Union)
(NB. including cheaper, equally qualified and maybe less industrially wise although my latter comment may just be wishful thinking).
In this context R & D spending (investment) by industry represents 63% of total R & D spending.
Such weakening of industrial activities and accompanying delocalisation has, according to the US economist Gregory Tassey, a devastating effect on the R and D capacity of the (national) economy which in turn weakens the (Nations) global innovation infrastructure.
Education and training
Guilhon criticises Education and training. He claims that under investment in Western Europe leads to a penury of qualified work, evident in many sectors (the book review does not say which sectors nor other evidence).
Delocalisation he qualifies as "shadow migration" allowing the "home" country to benefit from qualified productive factors while renumerating them at (lower) welcoming rates.
A LOOSER-LOOSER GAME (A FOOLS GAME when we know the high quality of education and the positions of those targeted,! Strong words indeed )
When qualified work moves the European schema appears to reproduce some aspects a Looser-Loser (L-L) Game as opposed to Win-Win (W-W) play. This L-L game appears to characterise the relationship between the developed countries and the developing countries
Countries that export qualified labour (southern Europe) are expected to invest less in education whereas qualified labour importer countries would tend to do the same thing, not invest in education since they can depend on the investment of other countries.
Thus globalisation requires a systems vision of innovation, which requires simultaneous investments in strongly related complimentary actives: new technologies, human capitol, communication technologies, intellectual property legislation, valorisation structures.(I guess this specialist & many others do not follow this blog -I have only 2 followers to date- other wise Innovative issues such as Innocentive incredibly instructive Prof Guilhon.)
COMMENT:
In many ways an approach such as the above makes me think our national ecomomic analysis and battles are like the Nuclear Arms Esclation of the cold war period, When one side ups the threat the other responds, based upon fear (and at what a cost, for peace) cf. Peter Senge's book "The Fifth Discipline". Whatever short term action put into practise to increase the established measured economic performance eg Fracking-the shale gas and oil extraction process, (usually not concerted action to master GHG-CC consensius among all the most highly reputable scientific experts brought together by the IPCC-Intergovernmental panel for Climate Change -climatologist-meteorologists supported warning, not blind fear. The battle appears to have been lost, since more and more and more talk of adaptation.
FIGHT THE GOOD FIGHT AND WEDGE A WAR.(Pacala-Socolow Wedges to mitigate global climate warming)