Cohesion or Widening Disparities: R&D Performance vs. EU Funding of the Regions

Abstract

This comprehensive analysis investigates the effectiveness of EU funding in promoting research and innovation across various regions, with a specific focus on the Horizon Europe Programme. In this study, we employed a mixed-quantitative analysis of funding allocation data sourced from the Horizon Europe Dashboard and the Global Innovation Index. We systematically analysed the distribution of Horizon Europe funds from 2021 to 2023 across all EU Member States and their respective NUTS 2 regions, focusing on per capita and per researcher fund allocation. Additionally, a comparative analysis was conducted to assess the alignment between fund distribution and innovation indicators such as R&D intensity and innovation outputs.The study also critically examines the EU’s cohesion policy, which is fundamentally designed to reduce regional disparities and promote equal opportunities across all EU regions. Through our analysis, we aim to assess whether the current implementation of the EU’s financial instruments aligns with the overarching goals of cohesion policy, particularly in terms of fostering uniform economic growth and development. This examination is crucial as it highlights the need for the values of cohesion to be more effectively integrated into the criteria systems of directly managed EU funding programs to achieve its intended objectives of regional and territorial cohesion.The study reveals persistent and widening disparities in the distribution of funds, which accentuate regional and national inequalities within the EU. Despite significant financial allocations aimed at fostering innovation, the evidence points to a concentrated benefit in specific regions, particularly those already developed, thereby raising concerns about the equitable promotion of technological advancement and economic growth across less developed areas. The findings underscore the need for a more balanced and strategic approach to funding that ensures all regions can contribute to and benefit from Europe’s innovation landscape. This research contributes crucial insights into the complexities of funding allocation, the challenges of regional disparities, and the potential pathways towards a more inclusive innovation policy within the European Union.