Synthesis Report - European Commission - Europa
Synthesis Report - European Commission - Europa
Synthesis Report - European Commission - Europa
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Ex-post Evaluation of the ERDF 2000-2006<br />
<strong>Synthesis</strong> <strong>Report</strong><br />
regions, for just 10%. In both cases, population had been declining for some years before the<br />
beginning of the programming period.<br />
ERDF funding amounted on average to just over 0.3% of the GDP of the regions concerned in<br />
Finland and just over 0.25% in the Swedish regions.<br />
GDP per head in the regions in both countries is below the national average, though whereas in<br />
Sweden, it was only 8% below in 2006, in Finland, it was 21% below. In both cases, growth of GDP<br />
per head over the period was above the national average, whereas it has been significantly below<br />
the national average in the preceding 5 years. In both cases, population continued to decline over<br />
the period, but in the Swedish regions at a declining rate.<br />
In both cases too, there were growing disparities within the regions, with a widening gap between<br />
the few urban centres and more rural and remote areas.<br />
The development strategy co-financed by the Structural Funds was similar in the two countries:<br />
• in Finland, to strengthen the competitiveness of local businesses through supporting<br />
innovation, investment in human capital and the local environment, as well as to provide<br />
public services on an equal basis across the country in pursuit of regional balance;<br />
• in Sweden, to develop local industry through a knowledge-based growth strategy.<br />
In Finland, support was mainly confined to well-managed and profitable SMEs. The evidence<br />
suggests that over 80% of the firms receiving investment grants grew as a result and new jobs<br />
were generated in about half. The aim, however, was not to expand output and create jobs<br />
directly but to do so indirectly and in a sustained way by increasing competitiveness and<br />
productivity. The evaluation evidence is that support for R&D achieved this in most cases and that<br />
R&D projects carried out jointly with research centres and large enterprises were a means for<br />
SMEs to have access to research without incurring excessive costs.<br />
In practice, support for R&D activities in SMEs and in research centres in both Finland and Sweden<br />
contributed to raising the expenditure on R&D in Objective 1 regions in relation to GDP to well<br />
above the level in most other regions of the EU. According to Eurostat data:<br />
• in Pohjois-Suomi, R&D expenditure amounted to 4.8% of GDP in 2006 as against a<br />
national average of 3.5% and an EU average of 1.9%;<br />
• in Övre Norrland, it amounted to 4.5% of GDP in 2006 as compared with a national<br />
average of 3.6% and a figure of just 2.5% in 2000.<br />
In Sweden as well as Finland, the evaluations carried out concluded that structural intervention in<br />
Objective 1 regions had succeeded not only in improving the competitiveness of SMEs but in<br />
increasing cooperation between them, including those in rural areas. It also strengthened local<br />
partnership and the willingness of people and organisations to work together and to adapt to<br />
structural change (see Box on forestry in Sweden).<br />
The decline in agriculture and forestry and the traditional industries based on the latter, together<br />
with an ageing and declining population, has made it difficult to narrow the gap between the<br />
more remote rural areas and the rest of the country. Nevertheless, EU funding and the projects<br />
supported helped to prevent it from widening, as well as creating the potential for altering the<br />
trends over the longer-term.<br />
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