In The State of the Regions Report 2006 presented at the summit of the Baltic Development Forum in Helsinki the key message is that location matters, and even more so now in an economic environment characterised by globalisation.
In the third and final Synthesis Report on the ESPON 2006 research programme presented in Espoo the message was that the territorial potentials of Europe's regions and, in particular, their overall diversity, are factors of increasingly importance for the European economy in the context of globalisation.
Based on an analysis of the 34 applied ESPON research projects, it was further observed that even though, at present, a number of trends point towards increasing territorial balance in Europe, the overarching and increasingly predominant market forces trend continues to promote geographic concentration in economic development and in the localisation of investments. The European objective of enhanced territorial cohesion is therefore being fundamentally challenged. Strong forces are pulling in the opposite direction!
A very important aspect of the concentration trend is demonstrated in the articles based on the Geographies of the Production of Knowledge (pp 6 - 8). Some 75% of the total European investments in R&D (research and development) take place in the Pentagon, the
economic core of Europe.
In this area which covers around 14% of EU territory the highest ranking European universities and the most important financial institutions are located. The concentration of R&D investments and universities indicates that the highest innovation and development potential is situated here while extended parts of the
European territory – mainly in the East and the South – have a relatively low innovation potential. The Nordic countries however remain an exception to this general Europe-wide pattern of peripherality linked to poor innovation potential.
In addition, a distinct core-periphery relationship can be observed at the national level, where R&D activities are generally concentrated to a few regions, often near the capital city. This territorial pattern is largely replicated in the regional share of cultural employment, which includes 'creative' jobs that normally stimulate the processes of innovation.
The new 7th European Framework Programme for research (see page 4) can be viewed as an important pan-European instrument for the implementation process of the Lisbon Agenda. Innovation can still be viewed in a broader perspective than that simply of new ideas and new products based on research. As such, the 7th Framework Programme contains some new elements which may better enable those regions lagging behind to benefit from the new opportunities available.
One can however legitimately ask whether the considerable amount of EU money which is going to be allocated to R&D in a 'free competition' across Europe will not simply further enhance the innovation capacities of those already strong regions leaving the more peripheral regions to lag even further behind?
If this is indeed the case then it could be argued that Europe will continue to develop in an increasingly polarised direction where disparities in the potential innovation capacity between regions continue to grow.
In the article 'Farewell to the Pentagon' (page 11), concerning future strategies for the European periphery, it is suggested that peripheral areas should neither rely on an extension of the Pentagon or on its decentralisation. The periphery will gain from neither approach. Instead it is proposed that access to the global economy for peripheral regions is ensured through the development of connectivity, and by the further reduction of linguistic and regulatory barriers and entrepreneurial cultures.
In relation to R&D functions then it remains crucial to connect peripherally located universities and research institutions to more well-situated institutions in other parts of the world. A more elaborate understanding of globalisation and of the way innovation processes take place in different types of regions is thus a necessity. Territoriality thus continues to matter placing continuous demands on the promotion of new ways and means to overcome its pejorative cultural and socio-economic consequences.
Originally we had planned for four issues of the Journal of Nordregio in 2006. Unfortunately, our editor Odd Iglebaek, suddenly became seriously ill on early November. Therefore we had to reduce to three issues. If all goes well, Odd Iglebaek will be back up to full capacity early next year.
The Journal of Nordregio wishes all of its readers a happy and innovative new year!