The Session aims to explore the interplay between industrial and territorial policies, as well as the role of research and innovation (R&I) funding instruments in reducing the innovation divide in the EU.
The Draghi report offers an in-depth analysis of the EU’s innovation gap with the US and China, proposing a novel framework with strengthened industrial policies to address this challenge. However, the EU innovation’s landscape is characterized by significant territorial disparities, meaning that any effort to close these gaps will have substantial spatial implications. This session aims to explore this issue by examining, in particular, the interplay between industrial and territorial policies and the role of Research and Innovation (R&I) instruments and policies. The EU plays a crucial role in supporting innovation, mainly through the Commission’s Framework Programme for Research and Innovation, the European Structural and Investment Funds (ESIF) and, more recently, the Recovery and Resilience Facility (RRF). Nevertheless, the spatial distribution of these efforts remains highly uneven, reflecting varying allocation criteria and the disparate innovation capacities of recipient regions (Molica and Santos, 2024).
At a time when Europe faces an urgent need to strengthen its innovation capacity to stay competitive globally and achieve policy objectives such as the twin green and digital transitions, critical questions emerge regarding the new scope and objectives of EU R&I instruments.
For example: Do EU funds effectively contribute to narrowing Europe’s innovation gap, and to what extent? Can territorial equity and economic efficiency be successfully reconciled within EU R&I investments? How do local factors influence the allocation and impact of EU R&I funds (Dotti and Spithoven, 2018)? Are existing policy frameworks (e.g., Smart Specialization Strategies) effective in directing R&I efforts towards the right objectives (D’Adda et al., 2022)?
These questions are particularly relevant as discussions on the future of the EU’s long-term budget are in full swing. With this in mind, the session aims to facilitate an exchange of views between academics and policy makers.