The article discusses how changes in industries affect competitiveness in the EU. It compares different ways to measure these changes over time. The indicators used show a strong link between industry changes and competitiveness in EU countries. Austria's strong economy, despite focusing on less knowledge-intensive industries, is due in part to successful upgrading within sectors. Southern European countries hit hard by the debt crisis have significant competitiveness deficits that need long-term structural policy solutions. Monitoring industry changes can also help track and improve innovation efforts.