This collection of papers focuses on a core problem of European development. Ten contributions examine the development of industry and industry-related services in EU member states. The picture that emerges is a sobering one. Europe currently has a massive problem with its manufacturing industry, which has lost competitiveness in many of the states concerned. The consequences are de-industrialization and unemployment. By contrast, those states that have managed to retain a strong manufacturing base are distinctly better off. The contributions in this volume underline the fact that these problems will not be solved by market forces alone. The authors call for an intelligent industrial policy as a sine qua non for a process of re-industrialization. A common European strategy is essential, but at the same time, specific national structures and institutional conditions must also be taken into consideration.