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Synthesis Report Ex-post Evaluation of the ERDF 2000-2006 or engineering, industries. The second, and main, part of the analysis consisted of case studies of 12 regions receiving Objective 2 funding. The aim in each case was to examine the efforts of the regions concerned to restructure in the face of increased competitive pressure from globalisation and the contribution of Objective 2 funding in this regard 26 . The main findings of the analysis can be summarised as follows: • A number of Objective 2 regions (defined at the NUTS 2 level) across the EU changed their specialisation over the period examined, shifting from traditional industries to capital intensive ones or from capital intensive to equipment industries. In both cases, this was associated with a positive economic performance and, in most cases, an improvement in their estimated international trade balance 27 . • Of the 12 case study regions, only Steiermark (Austria) had succeeded over recent years in changing its area of specialisation, emphasising the difficulties of achieving this and breaking free from an historical development path on to a new one. The strategy adopted in the region succeeded in building up an automotive sector almost from scratch based on inward investment, with the regional agency pursuing a selective policy to attract suitable foreign companies given the end objective. • The experience of Steiermark as compared with that of the Ruhr area of Nordrhein- Westfalen highlights two important aspects of restructuring. The first is that it takes many years, and even decades, to bring about an effective change in areas of specialisation, even with continuous support. The second is that, it is easier to accomplish if the area concerned is smaller rather than larger. • Long-standing policy efforts to diversify the economies in many of the industrial Objective 2 regions have not led to the intended shifts in their sectoral pattern of economic activity. The pattern inherited from the past, and often in place for a century or more, has proved highly resistant to change. In Nordrhein-Westfalen, the Ruhr remains adversely affected by the past dominance of heavy industry, despite numerous policy initiatives and substantial investment aimed at developing and expanding new activities. Even in Steiermark, the case study found no evidence so far for the further diversification of the economy away from relative reliance on the automotive industry into higher-tech and more knowledge-intensive sectors. • The case studies demonstrated that enterprise support focused on increasing the innovation capacity of firms, especially SMEs and their performance on international markets can strengthen competitiveness and assist restructuring, as in Steiermark, País Vasco and, to a lesser extent, Toscana. Measures that proved to be the most effective were those aimed at encouraging new clusters of activity in specific sectors and in particular areas of technology. • In some case study regions (Bretagne and Rhône-Alpes, for example), the regional development strategy was not so much directed at structural change as at maintaining the internal territorial balance and safeguarding employment. Since the evaluation was 26 See the Annex to this report for a list of these. 27 Since no data exist on exports and imports at regional level, estimates were made for each region on the assumption that trade performance in each broad sector was the same in each region as at the national level. 76
Ex-post Evaluation of the ERDF 2000-2006 Synthesis Report concerned explicitly with restructuring and with the development of regional economies, it did not investigate the effectiveness of this strategy. • The evidence is that three regions which showed the clearest signs of restructuring were also the ones where the regional authorities were the earliest to be aware of the need for structural change. They accordingly reacted to the threat of globalisation sooner than those in other regions by promptly developing strategies for encouraging the diversification of their economies. This demonstrates the importance of looking ahead and trying to anticipate the need for change in areas of specialisation, • Analysis of the relationship between Objective 2 programmes and the broader set of regional policy measures suggest that the most effective programmes were those which were in line with and, therefore, reinforced, the main thrust of development strategies being pursued in the regions. Support of the ERDF for ‘mainstream’ measures contributed more than where additional ‘complementary’ objectives were pursued. • At the same time, the possibility of using ERDF finance to support these strategies was hampered in some regions by the ‘micro-zoning’ which concentrated funding on small areas with very specific territorial needs. • The effectiveness of intervention was closely related to the competence and expertise of local institutions and their strategic vision. The evidence is that these attributes can change the path of development – and overcome historical ‘path dependency’ – by persistent, focussed and concentrated policy effort. • The evidence from the evaluation is that, despite its small scale, the funding provided under Objective 2 was of major importance for the regions examined. A large majority of those interviewed in the course of the case studies confirmed that ERDF support was instrumental in encouraging the adoption of a long-term strategic view of development, which was vital for both designing and building effective support for restructuring. It, accordingly, played a key role in setting the agenda for change as well as providing valuable funding which could be used to lever larger-scale financial support. In short, it acted as a catalyst for change, encouraging regional authorities to prioritise and enabling them to innovate as well as to put in place long-term action programmes. 3.4 TRANSPORT Transport infrastructure is an important driver of regional development. An efficient transport network is essential for sustained economic growth as well as territorial balance. The problems of economic development faced by lagging regions stem partly from having inadequate transport systems and poor links with other regions in the countries concerned and in other parts of the EU. It is not a coincidence that most Objective 1 regions in the EU15 are located on the periphery of the EU, away from both the national and EU centres of economic activity. Improvement of transport networks has, therefore, long been considered essential to increase the accessibility of lagging regions and of less economically central areas within regions. Efficient links between centres of economic activity and surrounding areas are vital if the growth generated in the former is to benefit these areas to the maximum. It is especially important for rural areas that there are good connections with the main regional centres both for businesses and individuals, to ensure that support services of various kinds and social and cultural amenities are within easy reach. The efficiency of transport systems in urban areas is equally important for business competitiveness and for limiting the time lost from travelling from one place to another. 77
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