Strategic Value Chains

A “value chain” is associated with a set of interdependent economic activities creating added value around a product, process or service, and a group of interlinked economic actors, operating in a strategic network across firms of different sizes, including SMEs, sectors and borders.

Strategic Values Chains (SVCs) are of systemic importance and make a clear contribution to growth, jobs and competitiveness. They are characterised along the following three-axis:

  • Technological innovativeness

  • Economic and market potential

  • Societal and political importance

SVCs are a new and transformative process at EU level not to replace but to complement on-going efforts of the EU to tackle societal challenges and to develop its industrial excellence. The aim is also to facilitate the cooperation between EU, Member States and industrial stakeholders.

The work in SVCs should:

  • analyse and understand what the enabling conditions are needed to make them grow (e.g. through an IPCEI);

  • address barriers that are preventing them from expanding;

  • be inclusive EU-level process and coordinated effort, to boost research, innovation and strategic autonomy;

  • improve industrial competitiveness and strategic autonomy and to meet major transitions ahead;

  • boost innovation, technological development and exploiting research results;

  • keep or achieve European industrial leadership globally in key areas of the economy.

The work in SVCs is not about picking winners nor about the involvement of just a few but it is rather about the whole ecosystem of strategic value chains, including companies of all sizes, covering the whole spectrum from research and development to manufacturing and related services.

The idea is to pool all available resources – EU, national, regional, local, public and private and foster interdisciplinary, cross-sectoral and cross-regional collaboration. It should not be a one-off action but the starting point for a long-term process that will be governed by a well-established structure.

SVC main recommendations

  1. EU Strategy: Develop a joint European wide vision and (integrated, concerted) masterplan/roadmap for a future European Hydrogen Economy and ensure a coordinated approach of the EU, national and regional support to the H2 technologies. To do so, also create and agree on a joint decision base.

  2. Continuous RDI to prepare the first industrial deployment and industrialization of next generation hydrogen technologies and systems: Ensure EU innovation leadership through continuous strong support to EU RDI & build upon existing networks.

  3. Build up a sustainable industrial ecosystem: Strengthen a skilled workforce as backbone, industrialize key components, create a more mature supply chain, scale-up technologies for multiple-businesses, and create a circular economy

  4. Ensure public awareness and acceptance: inform market players and consumers on positive potentials, demonstrate feasibility & ensure maximum safety for European citizens and create competitive advantage through standardisation

  5. Set up supporting regulative measures and establish a clear regulatory framework (environmental, permitting, etc.) for a hydrogen economy to evolve

    While the concept of SVC is as an independent and much broader approach, IPCEI is just one of many possible instruments that could be used to develop an SVC.