EU sees industrial revival through 3D printing and biotech

* EU paper promotes set of new technologies to boost GDP

* Manufacturing job losses 3 million since crisis

* Advanced manufacturing markets like biotech to double by2015

BRUSSELS, Oct 8 (Reuters) - The European Commission wants torevive the European Union's declining manufacturing sector byasking countries to invest heavily in new technologies such as3D printing, says a leaked paper seen by Reuters.

Key manufacturing industries in Europe have shrunk and theEU's main regulators want to ensure that new technologies areexploited to cheapen manufacturing costs and increaseproduction.

The paper which outlines the bloc's future industrial policysaid the commission wants to raise manufacturing from 16 percentto 20 percent of EU GDP by 2020 using new techniques such as 3Dprinting which builds objects using instructions from a printer.

Enthusiasts for 3D printing say it will revolutionisemanufacturing in electronics such as mobile phones and savemillions in costs as it would be as cheap to produce one phoneas it would be to make thousands.

Some predict that in the more distant future households willhave such printers to make mundane objects such as shoes.

The Commission also wants countries to invest heavily inadvanced technologies such as industrial biotechnology whichuses living cells to make materials such as chemicals,detergents and paper.

The market for such technologies is tipped to grow by 50percent from 646 billion euros to more than 1 trillion euros by2015, the paper said.

Industrial production has declined 10 percent since thecrisis and more than 3 million industrial jobs have been lost.

The car industry is among the hardest hit, with large overcapacity in mid-market car makers in France, Spain and Italy.

Total European car sales fell 6.6 percent in the period fromJanuary to August this year.

The paper indicates that the EU has not exploited pastemerging industries such as rechargeable lithium batteries.

It says European firms hold more than 30 percent of therelevant patents "without any production of such batteriestaking place in the EU".

To reverse such trends the Commission proposes non-bindingtargets for manufacturing and investment, both public andprivate.

The European commissioner in charge of industrial policyAntonio Tajani will launch the new proposals on Wednesday.

The policy will also promote green vehicles, smart grids,sustainable construction materials, and so-called key enablingtechnologies which include nanotechnology and photonics.

(Editing by Claire Davenport and Jon Hemming)