A policy brief by the Expert Group on the Economic and Societal Impact of Research and Innovation (ESIR)
The Expert Group on the Economic and Societal Impact of Research and Innovation (ESIR) is dedicated to providing strategic, evidence-based policy advice aimed at creating research and innovation (R&I) policies that drive sustainable economic and social transformations in Europe. In this context, ESIR addresses the issue of regional disparities in innovation and proposes solutions to enhance cohesion and competitiveness within the European Union.
Combining Regional Strengths to Narrow the EU Innovation Divide
Innovation is essential for regional development—it brings economic competitiveness, job growth, and development. However, not all European regions facilitate innovation processes, thereby losing significant potential for regional development.
There are substantial differences between regions, and innovative potential attracts more resources, leading to the concentration of innovation in certain areas while other regions fall behind. This situation is not unique to Europe; innovation concentration is a global process.
How Does Innovation Performance Look Across the EU?
Data from the European Innovation Scoreboard (2024) show a separation between member states, while regional performance data provide a clearer picture of innovation concentration at the regional level (Regional Innovation Scoreboard 2023).
What Do Innovation Leaders Have That We Should Aim For?
High levels of investment in research and development
A well-qualified workforce
Ecosystems that favor entrepreneurship
Romanian regions belong to the category of emerging innovators—facing limited resources, infrastructure deficits, and weak institutional support for innovation. Research shows progress in reducing this innovation divide, but significant differences remain in R&D spending, venture capital investments, patent applications, and high-tech exports.
What Else Contributes to Regions Falling Behind?
Historical challenges
The staggered process of EU accession and integration
Limited support for developing an innovation culture during accession and pre-accession funding
The policy brief argues that the innovation divide is not solely a European issue, citing similar examples from the USA and China. Moreover, innovation tends to concentrate in large, wealthy cities, a trend observed even within the USA. Innovation hubs become magnets that attract more talent and resources. The type of technology or field in which innovation occurs also matters economically; artificial intelligence is one such example.
To Spread the Socio-Economic Benefits of Innovation
New jobs, economic growth, and infrastructure development—these benefits must be spread by nurturing these innovation centers and creating strong connections between different innovation hubs.
One of the main ideas of this article is that discussions about regional innovation must start by supporting these regions to realize their potential—combining regional strengths to create hubs and then connecting them to existing innovation hubs.
How Do We Build and Support New Innovation Hubs?
Create a measurement system to more clearly identify regions with innovative potential, pinpointing promising elements and identifying blockages.
Identify regions with innovative potential aligned with digital and green transition priorities.
Identify mechanisms through which these regions can spread the socio-economic results of their innovation.
Prioritize a few sectors with regional potential, using smart specialization strategies that can transform into regional public policy programs.
More concretely monitor the implementation of these strategies.
Create mechanisms to stimulate regional innovation, not just financial ones but also related to a more flexible legal framework.
How Do We Identify This Regional Potential?
Examine what kind of research and development is being carried out at the regional level and identify what other similar technologies could be produced using those present skills and competencies.
Correlate the complexity of technologies; for example, a region with potential in future medicine cannot be expected to invest in quantum technologies.
How Do We Connect These Hubs Once We Support Their Growth?
According to the analysis, interventions are needed even in how the European Union functions, requiring the establishment of a new fundamental freedom at the European level—the freedom for research, data, skills, and knowledge to circulate freely. Essentially, we need to find mechanisms to connect regions specializing in complementary fields, such as the European Universities initiative.
There is already freedom of movement for people, but highly qualified individuals in key areas often choose to move to the USA or other jurisdictions. Mechanisms to retain talent at the regional level are needed, along with sparking young people's interest in science and technology.
Conclusion
Addressing the innovation divide is essential for increasing cohesion and economic competitiveness at the European level. By combining regional strengths and creating interconnected innovation hubs, we can spread the benefits of innovation in a fair and efficient manner. ESIR emphasizes the need for concrete and well-directed measures to support emerging regions, connect them with centers of excellence, and help them reach their full potential. Implementing these strategies will lead not only to economic growth and job creation but also to the development of a solid and sustainable infrastructure. For Europe to become a global innovation leader, we must ensure that every region can contribute to and benefit from this dynamic process. Now, more than ever, is the time to act collectively and strategically to build a prosperous future for all European regions.
Read and download the full policy brief here.
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