Letter of Engagement for the Industrial Compact
To the President of the European Council
Dear Mister President of the European Council,
Dear Mister, Herman Van Rompuy

This Letter expresses the commitments of the undersigning political leaders of industrial regions in Europe to engage in a joint effort for re-industrialisation. This fits perfectly well the Industrial Compact  that is to be launched by the European Council in February 2014.  
We as political leaders of these regions share with you the analysis, ambitions and objectives that gave rise to the Industrial Compact.  After the stabilisation of the financial and budgetary crisis we need to go forward on a new growth path for Europe in which the re-industrialisation holds a central place. Our proposals are shaped as a ‘Vanguard Initiative’ because we believe leadership and strong partnerships are needed to achieve this.  Our political engagement for the Industrial Compact is based on a firm belief in the drivers of entrepreneurship and societal challenges in the take-off of such new industrial growth. 
Therefore this is a ‘Regional’ Vanguard Initiative. Because the regions are the closest policy link to the bottom-up growth dynamics for the renewal of our industrial fabric that come to being in place-based innovative partnerships and clusters in the regions. These eco-systems are breeding the new fast-growing SMEs which are vital for new growth. The political leaders of Vanguard regions are therefore advocates of a strong multi-level governance to support the growth of such eco-systems and enable the international development of bottom-up identified strengths for future markets. 
To this end the political leaders of industrial regions are also committed to a joint operationalization of ‘smart specialisation’. This is a coordination principle for our common efforts to foster structural renewal and shift the productivity frontier in Europe. This policy principle is well-suited in times of budget constraints to prioritise the public resources for innovation and industrial renewal, based on an entrepreneurial discovery process of the region’s options for the future, and for exploiting synergies across Europe.
This ‘Vanguard Initiative for new growth by smart specialisation’ wants to explore actively following concrete actions that are of strategic importance to advance our shared re-industrialisation objective:
-	Matching strategic roadmaps between all policy levels in support of the European priority areas that are identified by the Industrial Policy Communication of October 2012. Regions will develop joint roadmaps for building critical mass and complementary specialisations in these emerging value chains.
-	Aligning strategic investments to open new industrial path ways through flagship projects such as demonstrators and pilots, identified in the European priority areas and fitting in the smart specialisation strategies. Regions will combine their resources with European investments in these focus areas. 
-	Upgrading regional partnerships and clusters with global potential which are identified in smart specialisation strategies to European world-class clusters that can compete globally. Regions will internationalise their cluster initiatives in cross-border and networked European clusters and partnerships.
The Industrial Compact for Growth can only succeed in mobilising all resources when we combine in new ways a top-down political leadership indicating common goals and a bottom-up entrepreneurial drive for value-added differentiation that is based on local assets. The regions that have strong industrial ambitions and smart specialisation strategies for their structural renewal can make 
a difference. 

The under-signed EU regions have set their sights on developing a unique partnership for growth, acting as a strategic dialogue partner in supporting and influencing related EU policy and would welcome the exchange of ideas at Council, Parliament and Commission levels. 

IN SHORT:
The Vanguard Initiative for New Growth by Smart Specialisation. 
WHAT – set up a vanguard initiative of political leaders in the regions that will support implementation of the Industrial Compact via the development of multi-level European investment and cluster initiatives for emerging and transforming industries.
WHY – need to deliver on jobs and growth by investments in strategic priority domains for the re-industrialisation (with the focus on new pilot activities). 
WHO – regions with strong industrial ambitions and smart specialisation strategies for their structural renewal (beyond the ex-ante conditionality)
HOW – by sharing information to initiate bottom-up vanguard initiatives, developing common roadmaps and multi-level approaches (such as ‘Fund of Funds’) to stimulate investment and enabling local clusters with global potential to develop into world-class clusters
WHEN – initiated to influence the European Council in February 2014 and future investment opportunities in priority areas for the re-industrialisation of Europe