The instruments of regional policy in European countries John Bachtler and Sara Davies Presentation...
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Transcript of The instruments of regional policy in European countries John Bachtler and Sara Davies Presentation...
The instruments of regional policy in European countries
John Bachtler and Sara Davies
Presentation to the Norwegian Ministry of Local Government and Modernisation, Oslo, 20 March 2015
Possible options for Norway
Regional policy in other European countries
Norway’s regional development challenges
& instruments
2 Sara Davies , European Policies Research Centre, University of Strathclyde
Overview
Sparsely populated regions• Low population
density• Market access• Narrow sectoral
structure
Skills mismatch• Skill shortages in
some regions• Fewer skilled jobs
elsewhere• Pockets of high
unemployment
All regions• Framework
conditions• Clusters• Bottom-up
strategic capacities
3 Sara Davies , European Policies Research Centre, University of Strathclyde
Key development challenges in Norway
Periphery
• Regional Investment Grant & Regional Risk Loan• Social Security Concession• Action zone• Small capacity building measures
Skills
mismatch
• Assessments of transport infrastructure impact on local labour market size
All/Any regions
• Global centres of expertise• Centres of expertise• Arena programme• Urban development strategies
4 Sara Davies , European Policies Research Centre, University of Strathclyde
Main regional policy instruments in Norway
Context & capacity
Business
(Market access)
costs
Quality of life
Agglom-eration effects
5 Sara Davies , European Policies Research Centre, University of Strathclyde
Regional policies for sparsely populated regions
Norway Other countries
Higher education (networks) National National (e.g. FI SE UK)
Public research facilities National DENational
Business parks & related infrastructure
National AT DE EE FI FR IT CH
Education & training facilities – F2F or ICT
National DENational
Local capacity & strategy building
Bulyst, LUK, Programme for Small Municipalities
AT DE HU PT CH
6 Sara Davies , European Policies Research Centre, University of Strathclyde
Building context & capacity in sparsely populated regions
Norway Other countries
Investment grants Regional Investment Grant
EU28 except AT EE NLDK only SMEs
Loans & interest rate subsidies
Regional Risk Loan AT DK FI FR DE IT PT ES SI UK
Guarantees AT BE DE FI SI UK
Tax relief & credits BG HR CZ FR GR MT SK CH
Seed capital funds Seed capital funds
Venture capital funds DK FI
Aid for business training HR CZ DE EE SE
Aid to SMEs/start-ups only BE DE HR CY CZ DK LT PT SE
7 Sara Davies , European Policies Research Centre, University of Strathclyde
Building business strengths in sparsely populated regions
Norway Other countries
Transport infrastructure BG EE FR IT NL ES National
ICT & broadband DE HR National
Transport aid FI MT SE
Subsidised ferry travel HR UK
Other costs eg • Wage subsidies• Relief on social
contributionsSocial security concession
• AT CZ EE FI FR DE GR LT LU MT PL PT RO SK SI
• BE(B) BG RO SK ES SE
Aid to visit trade fairs etc PT SE
Exporting/marketing advice National
8 Sara Davies , European Policies Research Centre, University of Strathclyde
Reducing (market access) costs in sparsely populated regions
Norway Other countries
Expand the pool of skilled labour National
Assess LM effects of transport infrastructure
National
Support local supply chains National National (local/regional agencies)
Knowledge spillovers - business networks
National DE UK
Entities tasked with building/ supporting links to external agglomerations
National AT DE IE UK
9 Sara Davies , European Policies Research Centre, University of Strathclyde
Building agglomeration effects insparsely populated regions
Building quality of life insparsely populated regions
10 Sara Davies, European Policies Research Centre, University of Strathclyde
Norway Other countries
Solidarity mechanisms Action zone DE IT ES
Fiscal equalisation & interpersonal redistribution
Yes Most countries
Grants/loans for local infrastructure
BG HR CZ EE FR RO SI
Support for households in Action Zone HR EE FR LT
Funding for local services MERKUR EE
Funding for ethnic/ linguistic minorities
EE IE
Raise skills
Spread effects
Labour mobility
Policy coord-ination
Reduce job costs
11 Sara Davies , European Policies Research Centre, University of Strathclyde
Regional policies to address skill mismatches across regions
Reduce employment costs in structurally weaker regions
Norway Other countries
Wage subsidies CZ EE FR DE LT LU MT PL RO SK SI SE UK
Relief on social contributions Social Security Concession
BE BG RO SK ES SE
Raise skills of target groups Norway Other countries
Grants for training workers HR CZ DE EE SE
Policy coordination Norway Other countries
Local partnerships on skills National
12 Sara Davies , European Policies Research Centre, University of Strathclyde
Support for employment and skills
Support economic spread Norway Other countries
Transport infrastructure Assess LM effects BG EE FR IT NL ESNational
Transport aid HR FI MT SE UK
ICT/broadband National DE HRNational
Planning regulations National
Support labour mobility Norway Other countries
Public transport National National
Public employment services National National
13 Sara Davies , European Policies Research Centre, University of Strathclyde
Support for economic spread and labour mobility
Regional strategy building
Regional enterprise & innovation
Broader policies
14 Sara Davies , European Policies Research Centre, University of Strathclyde
Policies to enable all regions to contribute to national prosperity
Norway Other countries
Broader economic & social policies
National National & EU level
Support for existing strengths/clusters
Arena, Centres of expertise,Global centres, Urban dev’t strategies
DE FI FR NL
Funding for enterprise & innovation
National NationalEU Cohesion policy
15 Sara Davies , European Policies Research Centre, University of Strathclyde
Enabling all regions to contribute to national prosperity
Financial instruments Bottom-up
strategies
16 Sara Davies , European Policies Research Centre, University of Strathclyde
Shift of emphasis in EU Cohesion policy
Loans & low interest rates
Guarantees Seed capital
Venture capital
Business angels
Disadvantaged areas only
AT CZ DK DE IT NO SI ES SE
BE DE SI SE CH
NO DK IT UK
Favour disadvantaged areas
FI FR HU PT UK
FI IT FI HU
Regional delivery of national funds
FI FR CH FI FR FI FI SE UK
Sub-national funds
AT DE PL UK AT DE PL DE AT DE FR UK
17 Sara Davies , European Policies Research Centre, University of Strathclyde
Financial instruments with a regional dimension
+ -
Administrative costs
Risk of displacement
Demand vs supply?
Regional funds = small
Evergreen
EU CP rules
Market gap
18 Sara Davies , European Policies Research Centre, University of Strathclyde
Financial instruments for regional development
Holistic strategies forregional development
Norway Other countries
Top-down strategies – NUTS 1 or NUTS 2
Action zone (FI) FR IT NL NO PL CHEU Cohesion policy
Packages for smaller regions undergoing structural change
EE FI FR LV MT NL SI
Packages for economic zones with potential
BE IT LV LT PL UK
Bottom-up strategies in smaller regions
AT HU PT CHEU Cohesion policy
19 Sara Davies, European Policies Research Centre, University of Strathclyde
Main themes Type of region Local involvement
Integrated sustainable urban development (ISUD)
Environmental protection, Social inclusion
Urban Delegation of some tasks to local level
Integrated territorial investments (ITI)
RTDI, SME competitiveness, Low carbon economy, Social inclusion
Mostly urban but also others
Significant e.g. strategy design & implementation, project selection
Community-led local development (CLLD)
Varied Urban, rural, peri-urban
Significant but not including strategic management
20 Sara Davies , European Policies Research Centre, University of Strathclyde
Integrated territorial developmentin EU Cohesion policy 2014-20:
5% of funds ring-fenced
+ -
Administrative burden
Depends on local capacity
High local expectations
Politicised decisions
Holistic strategies
Local control –> builds capacity
Accountability
21 Sara Davies , European Policies Research Centre, University of Strathclyde
Integrated territorial development strategies
Socio-economic
need
Other policies
Institutional context
Evidence of effects
Funding available
22 Sara Davies , European Policies Research Centre, University of Strathclyde
Factors affectingregional policy options
Context• Gaps in HE,
R&D, education/ training infrastructure?
Business• Guarantees• Tax relief• VC funds• Training aid• Start-up aid
Costs• Transport
links• Transport aid• Aid to visit
trade fairs
23 Sara Davies , European Policies Research Centre, University of Strathclyde
Possible options for sparsely populated regions
Skills • Funding for
training workers
• Active labour market measures
Coordination• Local
partnerships
Economic spread• Transport
infrastructure?• Planning
regulations
24 Sara Davies , European Policies Research Centre, University of Strathclyde
Possible options to address skill mismatches
Financial instruments• Guarantees• Venture capital• Business angels
Territorial strategies• Areas undergoing
structural change• Areas with potential• Bottom-up strategies
25 Sara Davies , European Policies Research Centre, University of Strathclyde
Possible options for all / any regions
Europe
• Wide variety of RP instruments• New EU initiatives (FI & territorial strategies)
Norway
• Varied challenges• Range of existing instruments
Options
• Possibilities for different aspects of RP• But need to tailor to economic & policy context
26 Sara Davies , European Policies Research Centre, University of Strathclyde
Summary of conclusions