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This report offers guidance on how to manage industrial transition and is directed towards all policymakers seeking to improve the "what" and "how" of policies that promote industrial change. It identifies how regions in industrial transition can become more competitive and more resilient in the context of major shifts brought about by globalisation, decarbonisation and ongoing technological change. It takes stock of discussions emanating from a series of peer-learning workshops jointly organised in 2018 by the European Commission and the OECD. The report presents a number of implementation tools that policymakers have at their disposal to activate regional innovation potential to help tackle these challenges and the often accompanying ones such as an unsuitable skills base, unemployment due to deindustrialisation, and limited investment opportunities. Bringing together economic analysis and regional and country practice from the participating regions and countries on the topics of the future of work, entrepreneurship, innovation, transitioning to a climate-neutral economy and inclusive growth, the report identifies cross-cutting lessons to help policy-makers better design the next generation of smart specialisation and regional innovation strategies.
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The paradigm of mass production has given way to radically new forms of organizing industrial production based primarily on the need to foster continuous redesign of products and processes in the face of intensified competition. This change, which is designed to engender continuous adaptive learning in production systems, requires considerable organizational flexibility. The mass production systems constructed in the early post-war period foundered in the face of new forms of competition which put a premium on learning and flexibility.
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