Ex-Ante Analysis of the Regional Impacts of the Common Agricultural Policy: A Rural–Urban Recursive Dynamic CGE Model Approach

A recursive dynamic regional Computable General Equilibrium model is developed to assess the economic impacts of two Common Agricultural Policy (CAP) scenarios in six NUTS-3 (Nomenclature of Territorial Units for Statistics) (NUTS-1: major socio-economic regions, NUTS-2: basic regions for the application of regional policies, NUTS-3: small regions for specific diagnoses) regions of the European Union (EU). The main goal of the analysis is to assess the scenario effects (change in production, prices, income, employment) in the rural and urban parts of these regions as well as on the different sectors. The two scenarios analysed are related to a 30% reduction in Pillar 1 (market measures and direct support to farmers) support and the introduction of an EU-wide flat rate level of Pillar 1 support complemented by a 45% increase in Pillar 2 (Rural Development Policy) funds. Results show that the overall gross domestic product effects are not significant, due to the relatively low importance of both the agricultural sector and CAP spending in the regional economies. However, impacts on the agricultural sector are quite important and differ according to the nature of the policy shock. Also, the structural characteristics of each case study influence the rural–urban and sectoral spillovers, including impacts on region-specific agricultural activity.     

Determinants of the Uneven Regional Participation of Firms in European Technology Programmes. The 'Low R&D Trap'

Technology is of key importance to the growth of regional firms and economies. Research has shown the association between low technology development or take-up and regional disparities. Hence technology policy is moving closer to the heart of regional policies. European innovation programmes are intended to involve firms, large and small, in international technology research and development networks. The paper focuses on the involvement of Spanish firms in such programmes. Participation tends to be low if business R&D, presence of large firms, and the development of regional innovation systems are also low. Creation of R&D infrastructure through the Structural Funds has now to be prioritized at EU level and also define a new scheme of sectoral priorities in order to support R&D innovation activities in fields diverse from high-tech, if regions are to escape the 'low R&D trap'.     

Decentralized Industrial Policies in Practice: The Case of Austria and Styria

Unlike other European countries, most industrial policy in Austria still takes place at the Federal level. With recent open access to European funding programmes on the one hand and increasing regional engagement in industrial policy questions on the other, we see ongoing changes in this structure. As a result, industrial policy strategies for Austria are more and more designed in close complementarity with both international and regional strategies. The recent shift toward technology policy observeable in nearly all industrialized countries has also taken place in Austria and has favoured major urban areas. Nevertheless, a consensus-oriented tradition in stabilization and social policy have had remarkable negative effects on laggard regions up to now. The plan of this paper is documenting the actual situation as well as recent chances in Austrian industrial and technology policy. Furthermore, philosophy, principal targets and instruments of new industrial policy at the Lander level (Styria) are examined to offer a closer view on advantages and possible disadvantages of regional industrial policy.     

Tourism as a vehicle for regional development in peripheral areas – myth or reality? A longitudinal case study of Swedish regions

In the contemporary so-called ‘competition state era’, many rural and peripheral regions are in decline. Tourism is increasingly viewed as being able to alleviate and rejuvenate regions that are facing economic difficulties. The European Union has launched several programmes with the goal of stimulating growth and employment in peripheral areas. These programmes are often used to support tourism development projects. In this paper, a longitudinal analysis of spatial changes in Swedish tourism is conducted. The analysis is based on statistics regarding overnight stays in Swedish commercial accommodation facilities. The aim is to investigate if tourism and tourism policy contribute to the reduction in disparities between regions. Although there are exceptions, the main findings indicate that the potential for creating sustainable rural tourism growth through tourism policy seems to be much less than the popular discourse suggests.     

Analysing How Environmental Concerns are Integrated in the Design of the EU Structural Funds Programmes

This paper analyses the environmental measures co-financed by the European Union (EU) Structural Funds in the less-developed regions. Specifically, it studies if these environmental measures are tailored to the specific needs of the different regions and whether they are driven by an ecological modernization approach. The inclusion of environmental goals into the regional policy is also tested by analysing its connection with the main European environmental directives. We find a suitability of the regional programmes to the regional specific environmental factors, a scarce presence of the ecological modernization paradigm behind the programmes implementation and a clear orientation of the regional programmes to meet the EU legislation.     

The regional impact of the channel tunnel: Qualitative and quantitative analysis

The paper addresses the question of how different types of regions mill be affected by the development of a major new transport infrastructure such as the Channel Tunnel. It summarizes a study on the regional impacts of the Channel Tunnel throughout the European Union (EU). The research design combined qualitative methods of futures exploration employing 13 regional case studies with quantitative forecasting techniques using the MEPLAN transport and economic model. The paper presents the methodology and major results of the two approaches with respect to the impacts of the Channel Tunnel on transport flows and regional development in Europe and draws conclusions for transport and regional policy of the EU. The paper demonstrates that the removal of a bottleneck like the Channel Tunnel does not necessarily induce economic gains in all adjacent regions. Much more important for regional economic development than the reduction of transport costs are the image to be a region well integrated into the European high‐speed transport network and an active political response of the region to take advantage of opportunities like the Channel Tunnel.     

Promoting tourism through the EU LEADER programme: understanding Local Action Group governance

ABSTRACT

For many European rural areas, the rural development programmes based on the LEADER approach constitute the main policy for promoting tourism. Going a step further than a rural development programme, LEADER represents an ideal method for overcoming some of the challenges involved in rural tourism development, such as the integration of tourism supply through public-private organizations or the coordination of multi-level policies. Despite its potential, there are difficulties involved in putting this approach into practice. This article aims to provide in-depth understanding of the challenges faced by some managers responsible for developing tourism strategies through the LEADER approach. To do this, semi-structured in-depth interviews have been held with Local Action Groups managers from Castilla-La Mancha (Spain). The main findings reveal that the actions of regional governments lead to the limitation and strangulation of the principle of subsidiarity according with the LAG manager? opinion.     

Strategic spatial planning and contested ruralities: Insights from the republic of Ireland

Since the publication of the European Spatial Development Perspective (ESDP), a growing body of literature has emerged related to European spatial planning. Much of this literature is focused on the influence of the ESDP on city regions and urban policy in individual member states. Much less attention has been paid thus far to the influence of the ESDP on the formulation of spatial strategies and plans for rural areas. Within this context, this paper aims to explore the formulation of a national framework for spatial development in the Republic of Ireland, and in particular to examine the expression given to rural development and planning issues. This paper reviews the extent that the Irish National Spatial Strategy can provide a basis for a spatially defined (rather than sectoral based) rural policy by examining the policy construction of rurality and how this will impact on three aspects of rural planning policy: the conceptualization of the urban–rural relationship; managing rural settlements; and rural development. The paper concludes by developing wider lessons from the Irish example in the application of the European Union discourse of spatial planning to rural regions, and the difficulties associated with developing and implementing spatial policies in a deeply contested rural arena.     

Regional Innovation Systems and European Research Policy: Convergence or Misunderstanding?

In this article the question of interfacing, innovation policy and regional policy at the European level is addressed. Under which conditions will the new European research policy, relying on networks of centres of excellence, be compatible with 'cohesion' objectives? Since there will be no unique regional development scheme based on science and technology, how can policy-makers take into consideration the variety of local contexts? The analysis focuses on the fact that the concept of regional innovation system can be misleading for describing the territorial context. However, a cognitive approach seems possible, based on the notion of regional competence to innovate. The analyses are illustrated with empirical results concerning the French regions, and especially Alsace.     

Regional Innovation Policies in the Czech Republic and the Case of Prague: An Emerging Role of a Regional Level?

The aim of the paper is to provide an overview of the development of Czech innovation policy which started to get its shape in the first years of the 21st century. The article traces its origins to a number of interlinked factors—the introduction of European regional policy in the Czech Republic, the increased inflow of foreign direct investment into R&D-intensive sectors and also the devolution of power to Czech regions that were established in 2001 and gave a new, regional dimension to research and innovation policy. It pays particular attention to the process through which the regionally-based innovation policy advocated by the European Union (EU) has been translated and adapted in the context of a new EU member state. As an illustration of the efforts at the regional level to make a better use of the potential of R&D and innovation in the regional development, a case study of a regional innovation strategy of the City of Prague is analysed. The City of Prague was selected for a critical analysis of an innovation system and innovation policy due to the fact that it is a region with significant but until now not fully exploited innovation potential and, in addition, its first innovation strategy has been recently adopted. The innovation strategy is closely scrutinized and the process of its elaboration is critically examined within the European and especially national context. The authors demonstrate that there is a lot of conceptual ambiguity and confusion associated with the process of transferring the experiences of Western European regions to the Czech Republic. The authors believe that at least some of their observations and analysis of weaknesses of the process through which the regional innovation strategy (RIS) has been carried out will have relevance for other Czech regions and even for other regions in the new EU member states.     

Territorial Impact Assessment of European Draft Directives—The Emergence of a New Policy Assessment Instrument

European Union directives, along with their transposing arrangements in EU member states, can have unanticipated and sometimes undesirable impacts on certain regions and places. These include impacts on the use of space (e.g. new infrastructure or sprawl), governance, and on wider social, economic or environmental dimensions. Although ex-ante assessment of the potential impacts of EU initiatives has been carried out since 2002 through the European Commission's Impact Assessment procedure and also through national equivalents in some member states, important impacts are still overlooked, frequently because of their territorially heterogeneous nature within and between EU member states. This paper presents the results of the ESPON EATIA research project, in which a new territorial impact assessment methodology was developed for national and regional administrations in EU member states in order to inform their national positions during the negotiation of European draft directives and potentially other policy proposals.     

Changing regional systems of innovation in Greece: the impact of regional innovation strategy initiatives in peripheral areas of Europe

In the context of convergence and cohesion between the European regions, the promotion of innovation in regions that are in different phases of development has been a central objective of European regional policy. For this purpose, the European Commission has launched many innovation schemes and many European regions have conducted initiatives of this kind. In this article, based on the implementation of successive European regional innovation projects in three Objective 1 regions in Greece, namely Central Macedonia, Western Macedonia and Thessaly, the trajectory and the changes that have occurred in their system of innovation are examined. At the outset, considering the outcomes of the first phase of the RTP/RIS exercise, the obstacles in forming these regions' dynamic innovation systems are identified. Thereafter, upon the outcomes of the follow-up exercise of RIS+projects, an imminent change in these regions is observed, highlighting the marking of an innovation-oriented policy addressed to create a supporting institutional framework and shaping the regional innovation environment. Based on these observations, it is argued that European regional policy, via these innovation schemes, has significantly contributed to the reinforcement of innovation systems of participating regions.     

Smart specialization as a strategy to develop early-stage regional innovation systems

ABSTRACT

This paper discusses the role of smart specialization in catalyzing the development of early-stage regional innovation systems in less advanced regions, either by facilitating the emergence of some defining elements that were lacking or accelerating the development of others, such as: a regional knowledge base and a dynamic learning process, institutional structures, network integration mechanisms among key innovation actors, regional industrial specializations, and collective identities. The paper exemplifies this process with the case of Romania, a country where the research and innovation system is centralized at national level and regional innovation systems are in the early days. The transformations taking place in the Romanian regions within the process of implementing smart specialization, assisted by the European Commission's Joint Research Centre in the project “Targeted Support to Smart Specialization in Romania”, suggest a dynamic coagulation of institutional, financial, policy, and human factors that catalyzed the development of regional innovation systems in the country and introduced a novel approach to innovation policy.     

European Corridors as Carriers of Dynamic Agglomeration Externalities?

Transport corridors are viewed as a promising way forward in European Union (EU) transport policy, assumed to contribute positively to regional economic development. However, the validity of this assumption is not evident. The aim of this paper is to empirically test whether agglomeration economies in European transport corridor regions are positively related to indicators of regional economic development compared to regions outside the scope of corridors. The results build on the notion that the type of agglomeration economy in combination with the structure of the economy matters for prospects of structural economic growth in different regions. In this way, the analysis not only contributes to enhancing the empirical scrutiny of the corridor concept in EU transport policy, but also provides new insights into how corridors contribute to regional economic growth. We find only limited evidence for a corridor effect across European regions on productivity and employment growth externalities. Instead, we find a large degree of spatial heterogeneity interacting with corridors—a heterogeneity that has been little recognized in EU policies. We suggest that recent attention to place-based development strategies may accord well with the kinds of agglomeration effects related to corridor development observed in this study.     

Re-investing in the Built Environment: A Spatial Network Approach

Before launching ambitious and expensive development programmes to induce new regional technology corridors and clusters, it is critical to appreciate existing spatial economic patterns in a region. Initial economic conditions drive location decisions of firms and a labour force such that any changes must intercede onto an existing landscape built for current economic conditions. This work adopts a simple regional economic model to integrate and review traditional and modern urban location theories in order to illustrate the power of initial conditions to determine a final result. A simple spatial dynamic simulation model captures many of the pertinent effects of real estate pricing patterns to frame both opportunities and constraints to re-shape an urban landscape. Attention to 'ground up' spatially correlated location patterns revealed in price data that suggests close attention to strategic zoning can have profound impacts on the success or failure of economic development. Relatively modest policy interventions that carefully utilize existing preferences for urban amenities and concurrent real property investments involve fewer policy risks with potentially more powerful stimulative economic consequences than promised in more ambitious programmes.     

Do EU Regional Policies Favour Regional Entrepreneurship? Empirical Evidence from Spain and Germany

The European Commission in the scope of its cohesion policy tries to increase competitiveness of the European Union (EU) regions by supporting, beside many other instruments, entrepreneurial activities in the EU sub-national regions. This paper sheds an empirical light on the relationship between entrepreneurial activities and entrepreneurial perceptions on the one hand and the economic performance of regions eligible for EU regional policies in Spain and Germany on the other. Based on empirical data on the NUTS2 level, there will be analysis of whether previous EU support has later had an impact on entrepreneurial activities and/or entrepreneurial perception in the regions. The results show empirical evidence for a relationship between entrepreneurial activities and EU regional policies. However, other determinants such as gender and the role model function have an even stronger impact. Some of the results may help to increase the effectiveness of EC regional policies and of regional policies of the national governments, especially if the interdependence of entrepreneurship support policies and proper regional policies is considered.     

Improving European Union Regional Policy by Learning from the Past in View of Enlargement

This paper raises questions of centralisation versus decentralisation in European Union policy making, especially regarding regional policy. Shifts towards multi-level governance in the 1990s increased the partnership principle with sub-national governments. However, while regional disparities between countries has lessened, that between regions on some measures has increased. This will undoubtedly be an increasing feature in the context of EU enlargement. A history of centralisation in many such countries makes development of intermediary networks and institutions imperative if regional disparities are, again, to be reduced.     

Borders,planning and policy transfer: historical transformation of development discourses in the Finnish Torne Valley

European Union spatial policies have become a key institutional context in which to study policy transfer processes in European border areas. These policies are, however, only the most recent part of these transformation processes which raises a need for more historically sensitive approaches. An historical perspective is important, since border regions are historical processes with particular path-dependent development trajectories and power structures. This paper aims to contribute to the discussion concerning the transformation of European border regions by looking at the policy transfer of regional development discourses in the Finnish Torne Valley. The study material consists of strategic development documents produced by the Finnish border municipalities and the municipal-based co-operation organizations from the 1930s to 2013. The examination, based on critical discourse analysis, shows that the transformation process is driven by national trends and the dominant planning discourse. Nevertheless, the particular border setting and local discourse on ‘united Torne Valley’ have also intertwined with political and economic processes during different time periods.     

Scaling‐Up,Scaling‐Down,and Scaling‐Out: Local Planning Strategies for Sea‐Level Rise in New South Wales,Australia

Globally, sea‐level rise is expected to impact on many coastal regions and settlements. While mitigation of global greenhouse gas emissions remains an important task, adaptation is now seen as a critical component of the policy equation. Local government is a key player in adaptation planning and managing risk through their mandated role in land use planning and development control. Yet, managing the predicted impacts of climate change is proving to be a complex and difficult task for planners and policy makers. This paper reports on a case of local government deliberation on possible planning responses to address future sea‐level rise impacts in New South Wales, Australia. Using structured, expert opinion of planners and other technical experts engaged in a collaborative network in the Sydney region, we explore the feasibility of implementing planning and policy measures at the local and regional scales to respond to inundation risk as a result of sea‐level rise and storm surge events. Our research shows how local governments employ specific scale‐oriented strategies to engage private and public actors at different scales to manage legal, financial, and technical risks in coastal adaptation.     

Determinants of regional resilience to economic crisis: a European perspective

The impact of the economic crisis has been highly asymmetric across the European regions. The objective of this paper is to investigate the determinants of resilience to economic crisis across European regions. Regional economic resilience was assessed based on employment changes during 2008–2013, while socioeconomic determinants were analysed pre-crisis (2002–2007). A highly heterogeneous pattern of resilience was observed within countries, while significant differences were also revealed between the continental northern-central regions and the southern periphery. A multilevel logistic regression model indicated the magnitude of country-effects on the performance of regional employment during crisis periods. Both EU-referenced and country-referenced regional resilience identified the positive effect of accessibility and the negative effect of a large manufacturing sector in the ability of regions to withstand recessionary shocks. Education and economic development level positively affected the resilience of both large and small regional European economies. Investing in education enhances the spatial homogeneity across Europe in terms of its ability to react to economic shocks. The results reveal the importance of narrowing disparities among regions and formulating targeted and differentiated regional development policies at country level, taking into consideration the size of the economy of the regions.