Regional policymakers across Europe face increasingly complex challenges of territorial inequality and cohesion. These include growing evidence of ‘development traps’ of some regions which face considerable structural challenges in their efforts to revive growth. Significant from a policy perspective is that these regions are heterogeneous in nature and not limited to those with weaker economies. The spatial impacts of global ‘megatrends’, including digitalisation and technological change, demographic transition and climate change, are contributory factors to the emergence of ‘development traps’.
In response to this context, both academic and policy literatures are emphasising the importance of flexible ‘place-based’ and ‘place-sensitive’ regional policy responses. These include recommendations to: strengthen policy coordination and integration; work at appropriate functional scales; promote innovative financing of investments; adapt governance systems to meet new demands; focus on well-being and quality of life; and recognise the dynamic aspect of these processes.
An overview of regional policy responses across Europe over the past 12-18 months clearly reflects many of these challenges and policy directions. There has been a growing recognition that all types of territory can fall into ‘development traps’ and that it is crucial to look at the territorial interplay of economic, institutional and social structures in promoting regional growth. The scope of regional policy objectives is expanding and strategies are increasingly emerging based on places, with a range of different geographies, scope and institutional arrangements.
In addition to new legislative arrangements, several European countries have introduced new strategies for regional development. Notable within these is a greater differentiation of specific territories, or categories of place, and a widening of thematic priorities, including a focus on ‘people’ and wellbeing. Policy changes relating to institutional factors, particularly the quality and capacity of government structures and systems, have become increasingly prominent. These are reflected in broad processes of decentralisation and increased subnational policy competence, as well as administration capacity building and policy coordination. Finally, the emphasis on the need for place-based policy responses is reflected in the emergence of experimental approaches to regional development in some countries. A response to the spatial impact of global ‘megatrends’ is evident across all these areas of policy making.