Territorial EU

Territorial potentials
in the European Union
Ole Damsgaard, Maria Lindqvist,

Johanna Roto & José Sterling
Territorial potentials
in the European Union
Ole Damsgaard, Maria Lindqvist,

Johanna Roto & José Sterling
Nordregio 2009
Nordregio Working Paper 2009:6
ISSN 1403-2511
Nordregio
P.O. Box 1658
SE-111 86 Stockholm, Sweden
nordregio@nordregio.se
www.nordregio.se
www.norden.se
Nordic co-operation
takes place among the countries of Denmark, Finland, Iceland, Norway and Sweden, as well as the autonomous
territories of the Faroe Islands, Greenland and Åland.
The Nordic Council

is a forum for co-operation between the Nordic parliaments and governments. The Council consists of 87
parliamentarians form the Nordic countries. The Nordic Council takes policy initiatives and monitors Nordic co-
operation. Founded in 1952.
The Nordic Council of Ministers

is a forum of co-operation between the Nordic governments. The Nordic Council of Ministers implements Nordic
co-operation. The prime ministers have the overall responsibility. Its activities are co-ordinated by the Nordic ministers
for co-operation, the Nordic Committee for co-operation and portfolio ministers. Founded in 1971.

Stockholm, Sweden
2009
Swedish Presidency of the EU

Contents
Summary 5
Territorial Potentials 8
Spatial Structure in Europe 10
Land as Potential 12
Mineral Resources 14
Renewable Energy Potentials 16
Impact of Climate change 18
Population dynamics - Changing & Ageing 20
Population dynamics - Migration 22
Unemployment as a challenge 24
Labour Market Potentials 26
Labour Force Qualifications 28
Research and Development Potentials 30
High-tech & knowledge intensive labour 32
Innovation and entrepreneurship 34
Economic Performance and Productivity 36
Territorial cooperation 38
Accessibility 40
Abbreviations 42
References 43
Preface
The purpose of EU Cohesion Policy at the European level is to contribute to the Lisbon and Gothenburg objectives for
growth, jobs and sustainable development. More specifically, the Cohesion Policy should promote the cohesion of the
EU-territory by improving the use of all available resources in Europe’s regions. Seen against the backdrop of the deepest
global economic slowdown in generations the identification of these regional potentials and furthermore the elaboration
of strategies and policies that might enable and facilitate the European regions to fully exploit these potentials is more
important than ever.
While this paper aims to identify and discuss some of the most important territorial potentials it is nevertheless
restricted by access to available data at the regional level. The paper has been divided into 17 chapters. Each chapter
addresses one targeted territorial potential. We begin by focusing on natural and human potentials and follow this with
chapters focused more on territorial performance, specifically, on how these resources and assets are utilized in the
regions.
The analysis is primarily based on the European NUTS2 regional level. Combining and comparing this heterogeneous
set of regions, namely, all those between the most densely populated city regions of Paris, London and Brussels, and the
sparsely populated and extended regions of Northern Sweden and Finland is challenging. One potential impact of this
variation between the densely and sparsely populated NUTS2 regions may create a visual illusion - some geographically
small but densely populated and well-performing regions are almost invisible in the maps while at the same time the
geographically larger but sparsely populated regions may have too great a weight on the thematic maps, at least in relative
terms. This is important to bear in mind when interpreting the maps.
The Ministry of Enterprise, Energy and Communications in Sweden commissioned Nordregio to produce the study
during the current Swedish EU presidency which runs during the second half of 2009. The paper has been specifically
produced for the Conference on Cohesion Policy and Territorial Development in Kiruna, Sweden, December 10-11,
2009.
The report’s findings are the views of the individual authors alone and do not necessarily reflect the official opinion
of the Swedish Government.
The project work group at Nordregio consisted of the following members:

Ole Damsgaard
Maria Lindqvist
Johanna Roto
José Sterling
Stockholm, November 2009
Nordregio Working Paper 2009:6 7

8 Nordregio Working Paper 2009:6
Summary
Variations in territorial potentials nevertheless still being registered mainly in the Southern
European countries.
for growth
In the drive to strengthen competitiveness one of the main Today, bioenergy, including biomass from agriculture
challenges facing policy-makers and other concerned actors or forestry residue, is the most important supply source of
across the regions of Europe is to identify and mobilise renewable energy in Europe. The second most important
the territorial potentials necessary for the creation of new source is hydropower. A third rapidly developing alternative
jobs and sustainable economic growth. Understanding the is wind power, with the highest potentials in terms of wind
nature of territorial potentials however requires a detailed speeds found off Europe’s North Sea coast as well as
knowledge of the economic base of the region involved along the UK’s coast and islands in the North Sea. In 2007,
in addition to the prioritisation and implementation of the the average share of electricity generated by renewable
necessary policy processes. energies in Europe was about 15%. The level was highest
in Norway, Iceland, Sweden and Austria, all of whom
The concept of territorial potential has not been generated from 50% up to almost 100% of their energy
explicitly defined here but undoubtedly relates to numerous in this way, mainly due to high hydropower or geothermal
factors. These factors can be divided into tangible assets, (Iceland potentials).
such as natural and human resources, and intangible assets,
like organisation, culture, social issues and governance.
Together, these factors make up the territorial capital of
Increased focus on human
a region. Un-mobilised territorial capital may be released resources
through policies and actions at various administrative The size, structure and competence of the population in a
levels. specific territory have a significant impact on the territorial
potential. Market size and the potential to attract and keep
Importance of natural resources labour with the relevant competences are two of the most
important determinants of growth. Over the next ten
Land and natural resources have historically been
years the European population is estimated to increase by
important determinants of population distribution and
about 4 million persons (0.1%). However, the demographic
wealth. Access to farm land, water, minerals and energy
development is expected to result in an older population
sources are some of the factors that have influenced the
and in increased competition for labour all over Europe.
distribution of major cities. Today, some 42% of European
On a regional level, large disparities will emerge and may
land is covered by forests or other wooded areas with the
increase the already clear polarisation between urban and
highest shares in some Finnish and Swedish regions. About
rural regions. The challenge of an ageing population is
41% of European land is utilized for agriculture, with the
likely to be highest in certain regions of Northern Italy,
highest shares in certain regions of Italy, the UK, France
Eastern Germany and in Finnish and Swedish regions
and Belgium.
outside the major cities.
From a historical perspective, the exploitation
A mechanism that could be expected to offset the
of minerals has been closely linked to the European
effects of an ageing population is national and international
industrialisation process. Lately, increasing demand from
migration. However, migration patterns appear to further
countries like China and India, rising world market prices
strengthen the polarisation between Eastern and Western
and the liberalisation of the trade in prospecting rights has
Europe and between cities and rural areas. Almost 80% of
successfully opened the way for new investments in mining
regions with a positive in-migration also had a population
even in peripheral and regions of low population density,
increase. On an intra-EU level, the regions attracting
such as that encompassing the Fennoscandian Shield.
the absolutely highest level of migrants were located in
France, Germany and the UK, while the level of migrati
In order to better promote sustainable development
on to Romania was lowest. Both Italy and Greece attracted
it is increasingly important to reduce the greenhouse gas
only a limited number of intra-EU migrants although
emissions causing climate change. This requires policies
both countries received a remarkable number of migrants
stimulating energy efficiency, clean transportation and
from non-EU countries. The small states of Luxembourg,
renewable energy production. Between 1997 and 2007
Cyprus and Ireland attracted, in relative terms, most
more than half of the EU Member States reduced their
migrants.
levels of such emissions. Some small increases are

Despite the shortage of labour in certain sectors personal skills. On a national level, the highest level of
unemployment still poses a significant challenge in many students in both tertiary education and life-long learning
European regions. The average unemployment rate across is found in the UK, Denmark, Finland, Switzerland and
the European population in 2008 was 7%. In certain Sweden.
groups however the level of unemployment is much
higher. This indicates that the challenge remains to better A strong entrepreneurial and cooperative culture
exploit the labour potential by increasing employment is another factor that may stimulate innovation and
among younger persons (aged 15-24 years) and the long contribute to the development of high-growth companies
term unemployed (over 1 year). Youth unemployment and new start-ups. This, however, is difficult to measure
appears to be a problem particularly in Northern Europe, using quantitative data.
Austria and Switzerland, where overall unemployment is
otherwise rather low. Long term unemployment appears to Integrating territories
be more of a structural problem, for example, where the
Historically, local factor endowment and geographical
supply and demand of specific skills does not match.
specialization have been the drivers for international trade
in various sectors, e.g. natural resources, manufacturing
Concerning the level of employment among females,
products and, increasingly so, also for services. In an
workers in the older age brackets (55-64) and immigrant
increasingly complex world, one region may not itself have
employment, this appears to be related to national policies
access to the diversified resources needed to stimulate
concerning social welfare systems and integration policies.
innovation and sustainable growth. This may relate to many
In Finland, some regions of Northern Germany and in the
different types of resources, including natural resources,
Scottish highlands, gender differences are only marginal.
market size, labour force, competence structures or R&D
The level of employment is highest in the Scandinavian
investments. For the future, this makes it even more
countries and the highest level of employment among
important for regions to cooperate, to create competitive,
immigrants is found in Portugal and Sweden. This indicates
functional regions with a view to solving specific problems.
a potential for many regions to tap into an underutilised
Promoting stronger integration between European regions
labour force.
is one of the objectives of the European Union.
Innovation and entrepreneurship For example, in June 2009, the European Union Strategy
as economic drivers for the Baltic Sea region was presented. The strategy is
Recent years have seen an increasing emphasis on based on the concept of transnational cooperation within
innovation as a driver for economic and regional macro-regions. By stimulating cooperation between
growth. Two of the most important assets in stimulating countries and regions with a heterogeneous resource base,
innovation are investments in R&D and in human capital. the growth potential is expected to increase. Previous
The European aim is to invest at least 3% of GDP on studies indicate the potential for successful cross-border
R&D by 2010. In 2006, the regions that had reached cooperation even between regions with socio-economic
this goal were located in Finland, Sweden, Southern and differences or geographical barriers, such as mountains
Eastern Germany, South East England and the regions of and seas. Nevertheless, cooperation could be expected to
Steiermark (AT) and Stredí Cechy (CZ). At least two thirds be easier if regions have a shared language, similar culture
of these R&D investments are expected to come from and a long tradition of cross-border cooperation. In the
private investors. Countries with a high level of private, as case of Interreg III A programmes, the highest numbers
well as public R&D investment include Finland, Sweden, of cross-border projects were found along the boarders of
Switzerland, Austria, Germany and Denmark. Three out Spain-Portugal, Italy-Austria, Italy-Slovenia and Bavaria-
of five companies among the 1000 top R&D investors in Austria.
Europe came from France, Germany and the UK.
To stimulate cooperation across regions, nationally as
To meet the challenge of a knowledge society and well as internationally, it is necessary to reduce the barriers
increase labour force qualification levels, many European to interaction and the movement of goods and people.
regions have invested heavily in regional education One important determinant of cooperative potential
institutions. In global ranking terms, 40% of the world’s is accessibility at the regional and inter-regional scale.
top universities were located in Europe. Almost a quarter In general however a growing level of intra-national
of the European population of working age had a tertiary polarisation can be observed across most European
level education, with a concentration to city regions in, for countries, in particular between major metropolitan regions
example, the UK, Belgium, Norway, Finland and Spain. on the one hand, and remote rural territories on the other.
However, a high level of education may not be enough This suggests that access to large markets, extensive and
if a match does not exist between the personal skills of diversified labour markets and advanced services, is an
the labour force and the labour demand from the public increasingly important factor in economic development.
and private sector. Participation in life long learning is an The question here is how cooperation between regions
important instrument helping to improve or develop new helped by appropriate policy measures can compensate

for this disadvantage. In recent years for instance access to necessary to integrate a number of different policy-fields,
Internet communication has facilitated cooperation over such as the labour market, innovation, and energy- and
large distances. This is something which may have had a transportation policy.
positive effect on more peripheral regions.
According to the EU Green Paper on Territorial
Impact on territorial policies Cohesion, the territorial diversity of European regions is a
vital asset to economic development and competitiveness.
The increasing regionalization of national policy and
However, exploring the territorial potentials of a region
funding increases the need for strong regional governance
requires a process of analysing access to different types of
and cooperation between different types of stakeholders
resources, but also a regional process for prioritising and
at the regional level. To develop regional strategies it is
coordinating relevant stakeholders and policy-fields.

Territorial Potentials
Territorial capital and potentials The broad OECD definition of territorial capital draws
on discussions undertaken in economics and economic
The Territorial Agenda of the European Union1 states that
geography for a time-span of more than one hundred
the diverse territorial potentials of regions for sustainable
years. With the last notion ‘something in the air’ an indirect
economic growth and job creation must be identified and
link is made to the classical works of Alfred Marshall from
mobilised.
the 1920s based on studies of the industrial development
of Lancashire where he introduced the famous notion
The Agenda does not undertake to explicitly define
of ‘industrial atmosphere’4. On the one hand Marshall
territorial potentials but instead, in the background
could identify markets of perfect competition and a fluid
document for the Territorial Agenda,2 quotes the OECD
diffusion of technological changes but on the other he
report on Territorial Economy3 where the concept of
could also observe certain specificities in the economic
territorial capital is defined in the following way:
processes that were linked to specific territories and which
were not directly accessible for producers outside these
A regions territorial capital is distinct from other areas and is
territories.
determined by many factors (which) may include geographical location,
size, factor of production endowment, climate, traditions, natural
With Michael Storper it can be argued that
resources, quality of life or the agglomeration economies provided
agglomerations and clusters arise because of knowledge
by its cities -- Other factors may be ‘untraced interdependencies’
spillovers understood as the advantages of ‘thick’ markets
such as understandings, customs and informal rules that enable
for specialized skills and the many direct and indirect
economic actors to work together under conditions of uncertainty, or
linkages associated with large local markets or demanding
the solidarity, mutual assistance and co-opting of ideas that often
customers.
develop in small and medium-size enterprises working in the same
sector (social capital). Lastly there is an intangible factor, ‘something
In a broader sense authors such as Paul Krugmann5
in the air’, called the ‘environment’ and which is the outcome of
argue that concentrations form and survive because
a combination of institutions, rules, practices, producers, researchers
of some form of agglomeration economies in which
and policy-makers, that make a certain creativity and innovation
spatial concentration itself creates the favorable
possible…
economic environment that supports further continued
concentration.
According to the definition above the potential for
economic growth of a given territory depends on the
In the European Cluster Memorandum6 it is stated
exploitation of its tangible and intangible territorial capital
that innovation is the driver that will shape the European
assets. Previously un-mobilised territorial capital may be
vision of growth, and that clusters can be a powerful
released through policies and actions at various levels.
catalyst in this process by linking regional concentrations
of specialized companies and institutions. Regions that
This tangible capital is composed of factors like
combine risk capital, skills and research excellence with
geographical location, access to markets and capital, natural
strong cluster portfolios have an opportunity to become
resources such as land, raw materials and energy resources.
innovation hubs.
In addition, the size and skills of the labour force can also
be mentioned here.
The importance of agglomeration economies and
the implications of having or not having easy access
Examples of more intangible territorial capital assets
to important European agglomerations have been
include culture, social issues and governance including
questioned by some researchers7 and regional policy
formal and informal rules, creativity etc.
makers representing regions outside the Pentagon. It
is often argued that even regions of low population
1 Territorial Agenda of the European Union, Towards a More Competitive

and Sustainable Europe of Diverse Regions. 2007 5 Fujita,M., Klugmann, P. and Venables, A.J. (2001): The Spatial Economy.
2 The territorial State and Perspectives of the European Union, 7 March Cities, regions and international trade
2007 6 See: Center for Strategy and Competitiveness (2007) http://www.
3 OECD (2001). OECD Territorial Outlook 2001 clusterobservatory.eu/upload/European_Cluster_Memorandum.pdf
4 Storper, Michael (1997). The Territorial Development in a Global Economy. 7 See e.g. Gløersen, E. (2009: The NSPA are looking ahead, Journal of
The Regional World Nordregio, no.3 2009

density without any agglomerations of European scale In the EU Green Paper on Territorial Cohesion it is
can nevertheless perform economically far beyond the argued that the territorial diversity of the EU is a vital
European average and even above regions more ‘centrally’ asset. But to turn this diversity into strength it is necessary
located in Europe. to address territorial cohesion through a focus on new
themes and new sets of relationships binding EU territories
Agglomerations alone are seen from that perspective, together at different levels while also focusing on new
not fully sufficient in themselves to explain territorial forms of cooperation, coordination and partnership.
variations of economic performance or levels of welfare.
That gives territorial policies and other similar instruments The European Strategy for the Baltic Sea Region
a much wider potential and room for action. is an example of these new forms of cooperation and
coordination in action - in this case at the macro-regional
Territorial policies scale.
The purpose of EU Cohesion Policy is to contribute
At the regional level the increased regionalisation of
to the Lisbon and Gothenburg objectives for growth,
national policy and funding increases the need for strong
jobs and sustainable development. More specifically, the
regional governance and cooperation between different
Cohesion Policy should promote the cohesion of the EU-
types of stakeholders. One of the new themes which should
territory by improving the use of all available resources in
be addressed at the regional level is the shift to renewable
the European regions.
energy resources and the development of eco-efficient
growth in general because of the local and regional nature
In addition to the Cohesion Policy however a number of
of many of these renewable energy sources.
other policy-fields at European, national and regional level
impact territorial development and territorial cohesion.
Exploring the territorial potentials of a region thus
Labour market policy, enterprise- and innovation policy,
requires, on the one hand, a process of analysing the
R&D policies, policies for higher education, energy- and
access to different types of resources and on the other,
transport policy, maritime policy, rural development
the putting in place of a prioritization and coordination
policy, urban development and planning together with the
process, where the relevant groups of stakeholders and
provision of public and private services are all important
fields of policy are involved.
fields of policy which should be integrated into territorial
development strategies.

Spatial Structure in Europe
The European settlement pattern and territorial structure only a few very large cities and agglomerations seen in a
is unique. The spatial structure can be defined by the global context. According to Eurostat’s Urban Audit data
metropolitan regions, the cities and towns and by the rural only 18 European core cities or 56 city regions (larger
areas and those of low population density. It is argued urban zones) have more than one million inhabitants.
that cities are the key drivers in the economic, social At the same time 72% of the European population (EU
and cultural development of the regions. Though the countries plus Norway and Switzerland) resides in cities
European network of cities is dense it includes however with less than 100 000 inhabitants, e.g. small and medium-

sized towns (SMESTO). Furthermore, approximately Since the division of European NUTS regions is
one fifth of Europe’s population is considered to live in mostly based on existing national regions significant
rural areas. These figures are not evenly distributed across differences exist between countries. For example 27.7%
Europe and thus the density and character of urban and of the European population lives in NUTS3 regions with
rural areas differs widely. more than one million inhabitants. These 84 European
NUTS3 regions vary from capital areas and other main city
When looking at the territorial performance and regions to more rural regions. It is thus important to bear
potentials of the European space at the regional level in mind that the territorial performance of one or other
NUTS (Nomenclature of Statistical Territorial Units) indicator varies from region to region. At the same time
regions are used in the various maps and figures throughout some geographically small but high performing regions are
this report. NUTS subdivides each Member State into a almost invisible in the maps.
number of regions, mainly based on the existing national
administrative structure, and allows us to make Europe- Certain geographical characteristics can be viewed as
wide comparisons. a handicap to regional development. The Treaty of the
European Union points to the sparsely populated, islands
The majority of the regional data is presented on the and mountain regions as exhibiting natural handicaps.
NUTS2 level though some material is also shown on the Compared to regions lagging behind, in general these
lower NUTS3 level. The scale used (NUTS level) will naturally handicapped regions have other and more
influence the European pattern shown, and therefore it is permanent kinds of obstacles to face than merely economic
important to understand the spatial concentration dynamic structural ones, e.g. a lower level of productivity in terms
in the European Union as a background to the analysis of farming compared to other regions. In addition the
presented here. high cost of basic public service provision and energy
supply is consistently hampers the development of the
In 2008, the average population density was 115 approximately 200 mountain-, island- or sparsely populated
persons per km² in the European Union. There are, regions7. Of course some regions exhibit both natural and
however, striking differences between the EU regions in structural problems or handicaps, though this is far from
the spatial concentration of population. Some 18% of the being the case for all naturally handicapped regions. In
population lives in the most densely populated areas (with some cases the natural handicap is compensated by specific
more than 1 000 inhabitants per km²). In geographical economic opportunities e.g. natural resources such as
terms this represents less than 1% of the EUs land area. minerals or very specific opportunities for tourism. These
The city regions of Paris, London and Brussels are the specific opportunities for tourism could be ‘classical’ ones
densest regions in the EU. In contrast, the EU defines such as the opportunity to provide the basic facilities for
regions with a low population density as regions with less winter sports. Other more unusual opportunities include
than 12.5 inhabitants per km² at the NUTS3 level. These the linking of regions with low population densities with,
18 regions (see map on this page) cover 13.8% of EUs for instance, the specific conditions for the testing of cars
land area but only 0.6% of the population lives there. on ice or in snow.
Data source: Eurostat, EUs Green Paper, EU DG

REGIO
7 Please see a definition for these regions in Green Paper on Territorial

Cohesion
http://ec.europa.eu/regional_policy/consultation/terco/paper_terco_en.pdf

Land as Potential
From a historical perspective nature or land can be Today, the most important agricultural regions of
perceived as the basic territorial resource. A certain piece Europe can be found often quite far removed from
of land can be more or less suitable for farming and it urbanized centres. Factors such as the need for good access
can contain groundwater, mineral or energy resources. to large unbroken fields with minimal slope and a good
Historically, the fertility of land determined the population water balance are important. In the future, access to local
density and all important cities were situated with direct and regional natural resources will play an important role
access to food, water and energy resources e.g. wood. as a basis for green growth strategies and the development
0 250 500 750
Land Use & Urban-Rural Typology km
OECD urban-rural classification and the main land areas
with human intervention & resource use potential
Europe_NUTS3_2008
UR_class
OECD Urban-Rural classification
<Null>
PUPredominantly urban*
INIntermediate
PR-C
Predominantly rural
PR-R
NR0825
© Nordregio & NLS Finland

Data source: CORINE,
DG REGIO, OECD
Actual Land Cover & Potentials

Europe_NUTS3_2008
NUTS3 regions with highest shares of agricultural
and forest land areas
afs_typo * Share of population living in rural local units (population density
Urban:
Agriculture (> 80% of land cover)
abb below 150 inh. per km2 in LAU2 level) below 15%;
Intermediate: Share of population living in rural local units is between 15 - 50%;
Forests (> 50% of land cover)
bab Rural: Share of population living in rural local units is higher than 50%
bba
<Null>
Nordregio
baa Working Paper 2009:6 17
bbb
of new clean and energy efficient technologies. Biomass notoriously variable between countries, reflecting different
from agriculture or forestry can be an important provider national experiences, environments, and administrative
of energy suppliers; and access to locally-produced food structures and are therefore not clear-cut. In a European
can be an efficient way to cut down energy consumption. context there have been various attempts at regional
Besides that, nature taken as an asset for recreation and typologies of the rural, but only one, that developed by
tourism plays an important role in increasing the region’s the OECD, has been widely adopted as a basis for socio-
attractiveness. economic analysis and in the context of rural development
policy. The OECD definition of urban and rural areas is
Based on land cover data, regions with the highest based on population density values above 150 inhabitants/
agriculture and forest coverage are shown in the map. Only km² on the local level. Meanwhile the most important
4% of the EU’s land area is covered by artificial surfaces. agricultural areas in the European Union are located close
In contrast, 180 million hectares, or around 42% of the to rather densely populated areas.
EUs land cover, is forested or ‘other wooded’ land plus
the utilized agricultural area represents only a marginally Population density has been actively used as a criterion
smaller land cover pattern with a 41% share. Significant for structural fund support and as a justification for special
differences exist between the regions. There are 133 arrangements with regard to competition rules. However
European NUTS3 regions with agricultural land cover of the relationship between urban and rural areas is also of
80% or more and 142 regions have a forest share of 50% significant importance. The network of urban and rural
or more. areas can e.g. contribute to the quality of life, both for city
dwellers living close to rural areas and those rural residents
In the territorial development context, the agricultural within easy reach of services.
regions previously presented should not however be
understood as synonym for rural. Definitions of rural are Regions with a higher percentage of forests and
other areas in a natural condition in particular have the
Protected terrestrial area potential to contribute to themes such as the preservation
of natural biodiversity and climate change mitigation.
ES Altogether 12.7% of the EUs total terrestrial area was
SE protected under the Habitats Directive in 2007. The
FR Habitats Directive forms the cornerstone of Europe’s
nature conservation policy. It is built around the Natura
FI
2000 network of protected sites and the strict system of
IT species protection. All in all the directive protects over
DE 1 000 animals and plant species and over 200 so called
PL “habitat types”, such as special types of forests, meadows,
GR and wetlands, etc., which are of European importance.
The Natura 2000 network itself is the largest network of
PT
protected areas in the world.
UK
HU Data source: DG Environment. EEA, Eurostat,
AT OECD
EE
CZ
IE
LV
LT
SI
SK
NL
% share of total
DK
terrestrial area
BE
Under 10%
CY
10-15%
LU
over 15%
MT
0 40000 80000 120000

Area (km2)
No data fo r B G & RO

Regions with higher percentage of
forests and other areas in natural conditions
Mineral Resources
Minerals and metals are unique and highly important prospecting for and production of minerals much more
regional resources in a European context. interesting. This means that new mines are constantly being
opened while old mines are revisited and thus regions with
Seen in a historical perspective, the exploitation mineral resources are increasingly becoming areas of high
of minerals such as iron ore is closely linked to the interest for international risk capital.
industrialisation of Europe and the United States. In
the period after the Second World War many of the For these often peripheral or low population density
mineral producing regions in Europe experienced low regions such new inflows of international investment
economic growth and structural problems because of represents at one and the same time a challenge and a
tough competition from Third World countries and falling unique opportunity for development.
world market prices. In recent decades however the global
demand for minerals and metals has grown significantly Clear potentials have been identified in the so called
together with world market prices. This growing level of Fennoscandian Shield. The greater part of these new
demand is an impact of the rapid economic development mining areas is within what is called the remote Northern
seen in countries like China and India but also a result of Sparsely Populated Areas (NSPA) of Finland, Sweden and
the still growing global demand for the high quality metals Norway. Future plans include doubling the production of
needed for high tech products of all kinds. iron-ore in Kiruna (Sweden), reopening the iron mine at
Kirkenes (Norway) and also opening a completely new
Rising world market prices and the liberalisation of the iron-mine close to Pajala (Sweden), just a couple of hours
market for prospecting rights has made investment in the up the road from the harbour town of Kalix. Both Sweden
Map Source: BRGM (The French Geological Survey) and “ProMine” Project; April 2009.
This map has been used with permission of the authors.

and Finland are also preparing new mining ventures in cultural and social aspects.
respect of gold, uranium and other minerals. Including
also Northwest-Russia, there are currently 42 functioning The new ‘mining era’ undoubtedly however provides
mines in the region and within a few years there could be a significant opportunity for those regions best able to
as many as 68. cope with such negative impacts and who are also at the
same time able to protect and develop other potentials for
The basis for these developments is the enduring development e.g. natural resources such as landscapes and
richness of the Fennoscandain Shield, which provides a natural areas.
geological structure ripe with assets. A good comparison
here is the oil and gas fields below the North Sea. Globally
only a few areas (red areas in the map, up-right) such as some
parts of North and South America, China, India, Russia,
Australia and Southern Africa have mineral potentials like
the Fennoscandian Shield (Journal of Nordregio, 2009:3).
The Kiruna experience

The story of the town of Kiruna is the story of
the iron-ore industry in northern Sweden. Natural
resources have been there for millions of years. Wood,
fish, pastures for reindeer and other husbandry was
the starting point. Later value was added through Highly prospective mineral regions, map by: Risto Pietilä
work to produce timber and food. But mining and (GTK)
the production of metals -which can be traced back
to the 15th century- brought to Kiruna the possibility The potential for the continuing and sustainable
for massive expansion, jobs and the growth of the production of minerals may be further enhanced by
permanent population. Harsh climate conditions and a stronger contribution from R&D, innovation and
a lack of suitable transportation solutions impeded knowledge-base improvement in collaboration with
mining activity until the end of the 19th century. It was industries and universities as a way of tackling technological
only after the improvement of accessibility conditions challenges while enhancing innovative exploration
to the area (after the construction of railways to Norway technologies as well as new techniques and methods of
and southern Sweden) that a massive expansion of extraction and recycling in both onshore and offshore
the iron-ore industry took place. Today, produced locations.
volumes continue to grow and the mine is one of the
biggest in the world. Additionally, Kiruna makes use Data Sources: BRGM (The French Geological Survey);
of the conditions offered by its natural location and ProMine Project, Journal of Nordregio 2009:3, GTK
environment by creating ideal conditions to develop Finland, EU-DG Enterprise & Industry
alternative activities such as winter car testing, the
ESTRACK Kiruna Station of ESA, the European
Space Agency, and the North European Aerospace
Test range.
The existence of mineral resources may be a challenge

in relation to other potentials such as forestry or tourism.
In many municipalities (i.e. northern Sweden, Finland and
Eastern Norway) it is the forest areas that have first and
foremost generated jobs and incomes for generations.
On the other hand the potential for a sector like tourism
may be derived from the existence of attractive natural
resources such as natural parks or natural environment
assets in general.
Most mining projects have major impacts on the

landscapes they inhabit. Potential conflicts here concern
the use of specific hazardous chemicals in the production
process such as cyanide used in the extraction of gold.
Various other negative impacts of these new investments
could also have some negative influence in terms of

Renewable Energy Potentials
Securing both energy availability and a healthy natural efficient growth and development. Those also constitute
environment have a solid place in the discussion of an important opportunity for countries which need to
global competitiveness as these factors enable economies overcome problems of energy dependency. The level
to operate in a more productive way by consuming less of effectiveness has a clear potential to contribute to
energy while simultaneously making an efficient and other themes such as climate change mitigation and the
sustainable use of their own natural resources. Energy reduction of greenhouse gas (GHG) emissions. Among all
efficiency and renewable energy are thus pillars of eco- of the potentially available renewable energies it is worth

highlighting the emerging growth of wind power generation potential and in Iceland from geothermal sources). Other
potential in countries like Denmark and Germany. countries with high figures -between 20% and 50% include
Denmark, Finland Portugal, Latvia, Spain, Slovenia and
Areas with the greatest potential for wind power in Romania.
Europe (areas with wind classes 5, 6 or 7) include the
North-Sea coast as well as the UK coast and islands in Data Sources: EWEA; Norden; Stanford University,
the North Sea and even locations in Slovakia, the Czech Eurostat, Nordregio
Republic, Greece, Sicily and Corsica.
In 2007, 40% of all new generating capacity installed in

the EU was wind power. Challenges in respect of supply
security, climate change and cost competitiveness are
increasing support for wind as a mainstream generation
technology able to meet a substantial share of Europe’s
electricity demand. European countries will move at
different speeds to incorporate wind into their energy
portfolios; however, the changing political will and the
improving performance of wind power underline its
increasing competitiveness. In the EU, installed wind
power capacity has increased by an average of 25%
annually over the past eleven years, and in terms of annual
installations, the EU market for wind turbines has grown
by 19% annually, between 1997 and 2007. (Extracted from
EWEA (2009): Wind Energy: the facts).
In respect of renewable energies more generally,

bioenergy (followed by hydropower) remains the largest
source in Europe and has significant potential in terms
of making a substantial contribution to the securing
energy supply and mitigating climate change as well as an
important contributor to solving conflicts between energy
consumption and environmental policy. Areas with higher
potentials include those with high percentages of forests
and industrial wood residues as well as farming areas
suited to the appropriate cropping systems. Regions with
an already high production of crops normally have the
greatest potential in respect of bioenergy. Conflicts may
however emerge between bioenergy and food production
in individual regions.
In recent years the production of biomass energy has

also become an increasingly important part of the agenda.
Biomass energy covers purpose-grown energy crops (poplar,
willow, etc), a multitude of woody materials generated by
industrial processes or provided directly by forestry and
agriculture (firewood, wood chips, bark, sawdust, shavings,
black liquor, etc), as well as wastes. Altogether, the share
of primary energy produced from wood to all products is
around 6.6% in the EU27 and varies from 0.0 (Malta) to
86.9% (Latvia). On the EU27 level the share of primary
energy produced from wood has increased 2% units in the
last ten years. Wood and wood waste is used particularly in
household energy consumption.
In general, electricity generated by renewables in 2007

presents clear variations across Europe. In Norway, Iceland,
Sweden and Austria renewable sources account for more
than 50% and in places up to almost 100% of the total
national production (given their significant hydropower

Impact of Climate change
Climate change may impact regional development e.g. manifest as a higher risk of storms or floods. Thirdly,
potentials in at least three ways. First, most European international agreements and national regulations aiming
regions will experience a rise in temperature combined at the reduction of greenhouse gas emissions might
with – depending on location - more humid or drier impact the development potential of the individual region.
weather which again will impact the conditions for farming A region able to effectively reduce the negative effects of
and other kinds of plant production. A temperature rise the climate change thus has a higher potential compared
might also impact the attractiveness of the region in to other regions. The map below summarises the key
general. Second, climate change will change the level of vulnerabilities of the main bio-geographic regions of
vulnerability concerning natural hazards for many regions Europe.
Source: IPCC, 2007. Climate Change 2007: Synthesis report Contribution of Working Groups I, II and III to the
Fourth Assessment Report of the Intergovernmental Panel on Climate Change. Cambridge University Press, Cambridge,
UK; Copyright EEA, Copenhagen, 2008

As changes vary geographically, the impact on different Denmark, Finland, Hungary, Portugal, Slovakia, Spain and
regions will differ according to the level of vulnerability to the UK are setting up national programmes for adapting
climate hazards (some regions being more threatened by to climate change.
droughts, others by floods, etc), so to strategies may vary
from region to region. The higher the vulnerabilities, the Plans overseeing the adaptation to climate change have
greater the challenges, efforts and costs for the region to been included in the flood protection plans of the Czech
adapt and the lower the comparative advantage in relation Republic as well as in the coastal protection plans of the
to other regions fulfilling their international targets. Climate Netherlands and Norway. (Extracted from IPCC, 2007)
change scenario results from the IPCC Assessment Report
(2007) project an increase between 0.1 to 0.4°C/decade At the European scale, more than half of the EU
for the annual temperature in Europe during the 21st Member States (including the biggest producers of GHG
century as well as a widespread increase in precipitation gases, the UK, Germany and France) have been reducing to
in the north. It also shows small decreases in the south some extent their emission levels during the period 1997-
and small or ambiguous changes in central Europe plus 2007. Some increases are still however being registered in
certain increases in the intensity and frequency of summer Southern Europe (See map below).
heat waves across Europe. Opportunities in respect of
agriculture may decline because of droughts while in other Data sources: IPCC, EEA; Eurostat, DG-Regio,
places the rise in temperature will create new possibilities. Nordregio
Regions in the south and Mediterranean regions will
be affected by decreases in hydropower production,
biodiversity loss, frequent fires and desertification while
regions in central and northern Europe plus Scandinavia
will develop a potential for higher forest growth, higher
crop yields and higher production of renewable energies
(i.e. hydropower or wind).
Other potentials
derived from climate
Climate change effects per se may also bring about
new potentials for certain regions in Europe especially
in parts of Scandinavia and the Baltic States. Softer
weather conditions could bring higher crop yields
in Denmark and southern Sweden while the timber
line will move north in Finland and Sweden. Warmer
temperatures overall may develop further opportunities
for other industries such as tourism to benefit associated
primarily with longer summer periods, lower energy
consumption for heating, and a higher potential for
hydropower generation as a result of generalised
increments in river flows in parts of central and northern
Scandinavia. Even though these “positive” potentials
may sound beneficial and may indeed bring some sort
of development to the regions mentioned, serious
anomalies will still threaten Scandinavia and should not
be discarded. These include reductions in the snow
and ice coverage, higher probabilities of flooding and
higher risks of damage from winter storms.
An important contribution to reducing GHG emissions

comes directly from efficient clean and sustainable transport
means, environmental measures and renewable energy
production. The more a region is able to develop policies
in these fields, the higher the potential to reduce GHGs
and adapt to climate change. The possible consequences
of climate change in Europe have stimulated efforts by
the EU, national governments, businesses, and NGOs
to develop adaptation strategies. The EU is supporting
adaptation research at the pan-European level while

Population dynamics - Changing & Ageing
The population of a given territory is one of the most Over the next forty years up to 2050 the European
essential potentials in respect of the labour force, innovation population will grow older and the labour force in general
and creativity. Population can also be viewed in relation to will shrink. At the regional level however considerable
the consumers of public services and of all kinds of other disparities will emerge, some regions will experience
resources. In other words population development helps a dramatic loss of people while others will experience
determine a number of other territorial potentials. population growth partly due to the existence of a younger

around 0.1% in average. Based on the should be kept in mind that the age
Eurostat´s base line variant the total dependency rate has been growing during
population in the EU will be around 496 decades and that the growing dependency
and more fertile population and partly to immigration from Moreover, the ageing population per se is not the
million in 2020, a bit over 4 million more
other European regions and other parts of the world.
rate has been matched by a still growing
problem; even if it has dramatic consequences in
During
people than the today. next The tenmain years growth it regions
is severe obstacle
productivity
depopulating of for the
the labour
local communities,
future
force.
where
economic
the major challenge
estimated arethatOver the
the nextEuropean
expected to years
ten be itwestern population
is estimated Netherlands,
that the European growth in mass
is to maintain basic publicmedia and
services. Thein thegroup
current political
of
Aging in EU NUTS2 regions
ncrease will slightly smooth, being annually
Ireland
population and the
increase small
will slightlymember
smooth, statesannually
being of debate 32during a number of years. Still, it
elderly people is both healthier and wealthier that those of
Cyprus,
around 0.1% aroundin Luxembourg
0.1% on average.Based
average. and Malta.
Based onon The
the total
Eurostat´s baseline previous generations
should be keptandin canChemnitz
thus
mind be (DE)
seen
thatas having
the theage
% share of population aged 65+ in 2020

variant the total population of the EU27 will be around potential for new economic activities within i.e. housing,
Eurostat´spopulation is expected to decrease relatively Liguria (IT)
496base
million inline2020, avariant the more
little over 4 million total people than dependency rate
services,28healthcare has
Itä-Suomi
and been growing during
(FI)
tourism.
populationmost in in
today. the theEU
The main
Baltic willStates.
growth be
regions around
are expected 496 to be the decades and that the growing dependency
Attiki (GR)
western Not only
Netherlands, is the and
Ireland totalthe population
small member of states Data 24
Sources: Eurostat, National East
million inEU 2020, a
increasing
bit over 4
but especially
million more
thetotal
share of rate has been matched
Vest (RO) bystatistical
a stillinstitutions,
growing
North
South
of Cyprus, Luxembourg and Malta. The population Nordregio.
people than today. toThe
elderly
is expected main
population.
decrease growth
in relative The
terms regions
European
most in the Baltic productivity
20 of the labour force. West
are expectedStates.to be inwestern

population general Netherlands,
is oldest in the Peloponnisos (GR)
Aging in EU NUTS2 regions
Ireland and the smalland
Mediterranean member
youngeststates in Ireland. of On 16 Sterea Ellada (GR)
Not only is the total population of the EU increasing but 32
Cyprus, Luxembourg
average 17% of and theMalta.European The population
total Flevoland (NL)Chemnitz (DE)

the share of elderly population in particular. The European 12
was aged
populationpopulation
is expected 65 years
in general or
to decrease more
is oldest in the in 2008.
relatively Duringand
Mediterranean
Sud - Muntenia (RO)Liguria (IT)
28 Itä-Suomi (FI) Yuzhen tsentralen (BG)
the
most in the nextinStates.
Baltic
youngest ten
Ireland.years the share
On average, 17% ofoftheelderly European 8
people
Notpopulation
only in is Europe
was aged 65isyears
the totalofestimatedor more into2008.
population increase
Over the
ofEurope 24
Attiki
12 (GR)16 20 8
24 28
East
32
3.5 % units on average. The relative change is

next ten years the share elderly people in Vest (RO) North
EU increasing
inestimated
number
but especially
to increase
of elderly 3.5% onthe
peopleaverage. share
is The
of change
relative
estimated to
P o pulatio n aged 65 and mo re as a share o f to tal po pulatio n, in South
po pulatio n estimates based o n Eruo stats baseline variant
%. 2020
West
elderly increase
population.
in the number
mostand
of The
elderly people
in theFinland European
is estimated
and the
to increase
Czech
20
most in Finland Czech Republic. By 2020 ageing
populationRepublic.
in general
will constituteIna2020 is
specialthe
oldest
agingin will
challenge
in
Northern
the
be aItaly,
special
Eastern Moreover, the aging population
Peloponnisos (GR)per
16
Mediterranean
challenge
Germany andandyoungest
in Northern
in Finnish inSwedish
and Ireland.
Italy,
regionsOn Eastern
outside the se is not a problem; even if it has dramatic Sterea Ellada (GR)
average 17% majorof

Germany theand
cities. European
In Bulgaria, Greecepopulation
in Finnish andand RomaniaSwedish
ageing is consequences
12 Flevoland (NL) in depopulating local
mostly a regional problem. These countries contain both
was aged regions
65 years outside
or more the majorin 2008. cities.During
regions with the highest and lowest shares of elderly
In Bulgaria, communities, where the major Sud - Muntenia (RO)challenge is
Yuzhen tsentralen (BG)
he next Greece
ten years
people
and Romania the aging is mostly a
in 2020. the share of elderly to
8
maintain basic public services. The
people inregional
Europeproblem. is estimated In these to countries
increase there current
8 group16of elderly
12 20 people28 is both
24 32
are both regions with the
The demographical highest and
dependency rate lowest
refers to healthier and wealthier that 65+
% share of population aged theingenerations
2008
3.5 % units on average. The
shares of elderly people in 2020.
relative change
population aged 0-14 and 65+ as a share of working age before and can be seen therefore as a
P o pulatio n aged 65 and mo re as a share o f to tal po pulatio n, in %. 2020
n number population
of elderly The people
demographical
15-64 years. is estimated
On the national dependency to
level, one third of
po pulatio n estimates based o n Eruo stats baseline variant
potential for new economical activities
ncrease most in
European Finland
rate refers to population aged 0-14one
the countries and
have the
more Czech
than anddependant
65+ within i.e. housing, services, healthcare and
Republic. asperson
Ina2020 per the two working
aging will agedbe persons.
a special Considerable
share of working age population 15-64
regional differences however exist. This growing age tourism. Moreover, the aging population per
challenge years.
in On
dependency Northern
national
rate Italy,one
has for alevel,
number of Eastern
se is not a problem; even if it has dramatic
third
years nowof beentheseen
Germany European
asand
a severe countries
inobstacle
Finnish to future have
and more
economic Swedish thanpotentials
Data Sources: Eurostat,
consequences growth one
in National statistical
depopulating local
dependant
in the mass
egions outside themedia person
major inper
and cities. two
the broader institutions, Nordregio.
working
political
In Bulgaria, aged
debate at the
national level. Notwithstanding
communities, where the major challenge is
this however it should be
persons.
Greece andborne Romania However the there
aging are
is mostly considerable
abeen rising
in mind that the age to maintain basic public services. The
dependency rate
regional differences. Specifically thehasgrowing
egional problem.
for decades and
age
In thatthese countries
the growing
dependency rate has been seen as a
dependency there
current group of elderly people is both
rate has been
are both regions with the highest and lowest
matched by the growing productivity of the labour force.
healthier and wealthier that the generations
shares of elderly people in 2020. before and can be seen therefore as a
The Demographical
demographical Dependency rate on European NUTS2 regions - Jan 1st 2008
dependency
65.0 potential for new economical activities
ate refers 60.0
to population aged 0-14 and 65+ within i.e. housing, services, healthcare and
as a share of working age population 15-64 tourism.
55.0
years. On national level, one third of the
European 50.0countries have more than one Data Sources: Eurostat, National statistical
dependant person per two working aged
45.0 institutions, Nordregio.
persons. However
40.0 there are considerable
egional differences.
35.0 Specifically the growing
age dependency
30.0 rate has been seen as a
AT BE BG CH CY CZ DE DK EE ES FI FR GR HR HU IE IS IT LI LT LU LV MT NL NO PL PT RO SE SI SK UK
0 1 2 3 4 5 6 7 8 9 1 0 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 0 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 0 3 1 3 2 3 3
Population aged 0-14 and 65+ years as a share of population aged 15-64 years. * FR - excluding oversea areas
Demographical Dependency rate on European NUTS2 regions - Jan 1st 2008
65.0
60.0
NORDREGIO WP 2009:6
Population dynamics - Migration
Migration can be interpreted as an indicator of how regions The total population change is a result of two
are exploiting their potentials in the sense that migration components, natural population change and net-
is undoubtedly related to the attractiveness of the region migration. On the European level 2/3 of the regions
concerned and its ability to attract new residents and to had a migration surplus and 40% a natural population
replenish its labour force with new recruits. increase. In approximately 30% of European regions both
of these components are positive. Migration seems to be

the more dominant factor for population increase. Almost located in France, German and the UK. The lowest scores
80% of the regions with positive in-migration also had can be found in Greece, Italy and Romania. On average,
a total population increase. In 200 European regions the more than 85% of the EUs internal labour mobility was
total population is decreasing even though net-migration movements between regions of the same country with
is positive. These regions are mainly located in Eastern only 14% between countries. The share of arrived non-
Germany, Greece and Portugal, i.e. in regions with very EU working age residents was 0.3% of the EUs working
low birth rates. age population. These people moved mainly to the same
top regions as intra-EU migrants but also to regions in
At a general level a spatial polarisation is visible in Cyprus, Spain and Lithuania.
relation to net-migration, both between Eastern and
Western Europe and between the metropolitan and the The major problem with this indicator is the fact
more rural and peripheral regions. In-migration is highest that it only illustrates in-migration and therefore it is not
in some Spanish coastal regions and around Madrid, in possible to know how long these working age migrants
8 of these regions annual in-migration is over 3%. The stay in the region. The mobility of people in the European
highest out-migration regions are in Eastern Germany. space shows quite a different pattern when talking about
migration in terms of absolute and relative flows. The
The figure below illustrates the regional dimension total international migration flows on the national level are
of labour mobility in the EU. It shows the share of the shown in the figure below. The length of the bars indicates
working age population who changed their region of the total number of immigrants and emigrants and the
residence permanently within the period 2005-2006 in colour indicates the emigrant’s share of total population.
relation to the EUs internal labour mobility (both from In 2007 the European population increased in total by 1.9
other NUTS2 regions in the country and from another EU million because of immigration. In absolute terms Spain,
countries) and from the non-EU countries. Italy and the UK received most immigrants although
the total flow of international migrants was highest in
Share of working aged residents who moved from Germany. Compared to total population the highest
an other region in 2005-2006
3.0
migration surplus took place in Spain, Luxembourg and
Cyprus (CY) Ireland. In all the European Island states, in Belgium and
2.5 in Switzerland the relative migration flows are remarkable
– both immigration and emigration are at a high level,
From outside EU
2.0
explained by tendencies to 1) work in these countries for
1.5
Bremen (DE)
a limited time period and 2) to study abroad because of
Wien (AT) Derbyshire & Nottinghamshire (UK) limited domestic education possibilities.
1.0
0.5 Bretagne (FR) Data Source: Eurostat, Nordregio, EU DG.Regio

0.0 Basse-Normandie (FR)
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0
From a different EU NUTS2 region (both from other NUTS2

regions in the country & and from another EU country)
In an intra-EU context the working age population

who changed their region of residence was less than 1% of
the EUs total working age population. The regions which
attracted the highest shares of working age residents were

Unemployment as a challenge
The unemployment rate indicates the efficiency of the in times of prosperity. On the other hand, in times of
regional labour market. In an efficient labour market the recession, unemployment is likely to hit certain groups
supply and demand of labour is relatively balanced. The harder than others.
regional challenge is to reach a level of unemployment
that secures a dynamic labour market, without creating In 2008, the average unemployment rate of EU was 7%.
social or economic problems. Without a minimum of Significant differences however exist not only between the
unemployment, companies may have problems expanding regions and countries but also between different groups.
0 250 500 750
Unemployment Pattern in 2008 km
Total-, Young Age- and Long-Term Unemployment Rate.
High and Low refers to above/below EU27 rate
EU27
Unemployment rate 7.0%,
of which the share of:
Unemployment persons aged 15-24 years: 24.9%
Long-term unemployed: 36.6%
0 500 1 000
km
NR0164
Below average unemployment rate Above average unemployment rate

Youngs above, Long-term above Youngs above, Long-term above
Youngs above, Long-term below Youngs above, Long-term below
Youngs below, Long-term above Youngs below, Long-term above Data source: eurostat
Youngs below, Long-term below Youngs below, Long-term below CH, HR & IS 2007

refers to people who have been unemployed seems to follow the economical
more than a year. This situation
Long-term unemploymentis commonrate development
previous crises, with half the aunemployment
year distance. figure
in the refers
regions to with
Below, people structural
regional who youth have and long
problems,
been termunemployed
e.g.
unemployment has seems On toa national
On the national follow
level
level,visible
it is clearly the
it isthateconomical
visible that
the ongoing
where more
personal
beenthan skills
a year.toand
compared This available
situation
the average level jobs do
ofis unemployment
common in theeconomic
economical
development crises
with
crises have halfhave
impacted a yearhitdistance.
the the countries
various European
not match, mostly
A high in
level the
in the regions with structural problems, e.g. a
Europe. of youth Central
unemployment and indicates differently.
countries rather From 2008 to August
On a national level, it is visible2009,
differently. From 2008 to 2009,
August the
that
Southern mismatch between
Europe. In skills the labour
Spain, market and the educational
unemployment the
highesthighest increases
increase in in unemployment
unemployment rates were in the
rate has
where personal and available
system. This is the situation in Northern Europe and in
jobs do the economical crises have hit the countries
Baltic States, Malta and Spain. In Iceland however, in
in general ismatch,
high,& but
not Austria mostlymay be
Switzerland in
whereexplained
theoverall
Central by aand is
unemployment taken place
differently.
relative terms, theinFrom
the 2008 Baltictorate
unemployment States,
August Malta
2009,most
has increased and
the
high share
Southern of rather
otherwise seasonal
Europe. low. In employment in
Spain, unemployment Spain.
though In
highest Iceland,
increase
it remains in the level
at a modest unemployment
still when comparedrate
unemployment rate has
to
in general is high,
certain sectors, such as tourism but may be explained andby a taken place in the Baltic
has increased relatively most, but is still
the European average. States, Malta and
high shareThe long-term
of seasonal unemployment employment toinpeople
rate refers Spain. level
In Iceland, the unemployment rate
agriculture. In 2008, the unemployment
who have been unemployed for more than a year. This
modest compared to the European
Data Sources: Eurostat, National Statistical Institutions,
certain
level was lowest
situation
sectors,
isincommon
suchin the
Northern asItaly, tourism
regionswhere
and
with structural
has increased relatively most, but is still
average.
Nordregio
agriculture.
overall unemployment In
problems, e.g. where 2008,
and the unemployment
its components
personal skills and available jobs do modest level compared to the European
Unemploment Pattern 2008 and
levelnotwasmatch,lowest in Northern Italy, where average. unemployment rate in 8/2009
were all under themostly European in the Centralaverage. and Southern
This Europe.
overall unemployment
In Spain, unemployment and its components
in general is high, but may be IS(2.2) Young
Unemploment Pattern 2008 and
may indicate a shortage
wereexplained
all under by athe ofEuropean
high labour.
share of seasonal
average. employment
This in NO(2.6) unemployment rate in 8/2009
Long-term
Youth
certain sectors, such and
may indicate a shortage of labour. as tourism and long-term
agriculture. In 2008, IS(2.2)
NL(2.8) Young
other
unemployment reflects level
the unemployment different
and and itspatterns.
was lowest in Northern Italy, NO(2.6)
DK(3.3) Long-term
whereYouth
overall unemployment long-term
components were all NL(2.8)
8/2009
There unemployment
is under
a clear correlation
reflects between
different
the European average. This may indicate a shortage
the
patterns.
CY(3.6)
DK(3.3)
CH(3.7)
other
generalThere
and long-term
is a clear unemployment,
of labour. correlation between e.g. the CY(3.6)
AT(3.8)
8/2009
long-term unemployment is relatively higher e.g.

CH(3.7)
general and long-term unemployment, SI(4.4)
AT(3.8)
in regions Youth
with high
long-term and long-term
overall unemployment,
unemployment unemployment
is relatively higher reflects CZ(4.4)
SI(4.4)
different patterns. There is a clear correlation between
e.g. in in regions
Slovakia
the general
with
and high
andCroatia.
overall
long-term The
unemployment,
absolutely
unemployment, e.g. long-term
LU(5.1)
CZ(4.4)
and e.g.relatively
in Slovakia and islowest Croatia. The absolutely
long-term
EE(5.5)
LU(5.1)
unemployment relatively higher in regions with high
and relatively lowest long-term
BG(5.6)
EE(5.5)
unemployment rates can bee.g.

overall unemployment, found in North-
in Slovakia and Croatia. The BG(5.6)
UK (5.6)
unemployment
West Europe. On rates
absolutely and relatively can
contrast, be
lowest found
long-term
theEurope.in
youth North-
unemployment UK (5.6)
RO(5.8)
rates
West Europe.can be found in North-West
On contrast, In contrast,
unemployment is relatively
youth unemployment highest
is relatively inthe
speaking these youth
highest in these
RO(5.8)
LT(5.8)
unemployment is relatively highest in these LT(5.8)
regions. The relatively

regions. The relatively lowestlowestlevellevel ofof youth
youth unemployment IE(6.0)
regions.
seems Theto be relatively
in the Czechlowest level of youth IE(6.0)
M T(6.0)
unemployment
unemployment seems seems to Republic.
be to the be the Czech Czech
M T(6.0)
SE(6.2)
Republic.
Republic. As indicated above, unemployment levels are strongly
SE(6.2)
FI(6.4)
FI(6.4)
Asinfluenced
indicated by the
As indicated above,
economic
above,unemployment
situation. During the period
unemployment
IT(6.7)
IT(6.7)
levels levels
are strongly
2003-2005 the
are strongly influenced
European unemployment
influenced by rate by thewasthearound BE(7.0)
BE(7.0)
9%. From the beginning of 2006 unemployment decreased EU27(7.0)

economic situation.
economic
rapidly. Between
During
situation. During
the summers
2003-20052003-2005
of 2007
the the
and 2008 European
EU27(7.0)
PL(7.1)
PL(7.1)
European unemployment
European
unemployment reached rate
unemployment a minimum wasaround
rate around
was around
7%. However, LV(7.4)
LV(7.4)
9%. 9%. From theemerging beginning ofin the

of2006
Co
Compared
mpared to 2008
2008
due From
to the the beginning
economic crises fall 2006
of 2008 the DE(7.5)
DE(7.5) average,
average,
European
unemployment unemployment
decreased rate rapidly
rapidly. increased,
Betweenindeed
unemployment decreased rapidly. Between PT(7.6) unemployment
unemplo yment
PT(7.6)
ratewere
rate were 0.3%
0.3%
all the way back to the level of 2003-2005. Its further
summers 2007-2008the theEuropean European
GR(7.7) unitslo
lower
wer in
in
summers 2007-2008
GR(7.7) units
development during the autumn of 2009 will be crucial. FR(7.8) 8/2009 in Cro atia;
8/2009 in Cro atia;
unemployment
unemployment reached
During previous reached the aunemployment
a minimum
crises, minimum around around
figure seems to
FR(7.8)
HU(7.8)
Latest data fo r CH
Latest data fo r CH
= 4/2009
HU(7.8)
7%. However, due to economical crises in inhalf a

7%. However, due to economical crises = 4/2009
have followed broader economic developments by SK(9.5)
SK(9.5)
the yearfall
– henceof 2008, is generally
unemployment the European termed a ‘lagging’ HR(9.6)
the fall of
indicator.
2008, the European HR(9.6)
unemployment rate rapidly increased, back ES(11.3)
unemployment rate rapidly

to the level of 2003-2005. The development
increased, back ES(11.3)
0.0 5.0 10.0 15.0 20.0
to the during
level ofthe 2003-2005.
fall 2009 will Thebe development
crucial. During
0.0 5.0Total Unemployment
10.0 ,in % 15.0
Total Unemployment ,in %
20.0
during the fall 2009 will be crucial. During

Monthly Unemployment Rate in EU27
Monthly Unemployment Rate
Not seasonally adjusted datain EU27
10 Not seasonally adjusted data
10 9
9 8
8 7
7 6
5
6
01
04
07
10
01
04
07
10
01
04
07
10
01
04
07
10
01
04
07
10
01
04
07
10
01
04
07
5
2003 2004 2005 2006 2007 2008 2009
01
04
07
10
01
04
07
10
01
04
07
10
01
04
07
10
01
04
07
10
01
04
07
10
01
04
07
2003 2004 2005 2006 2007 2008 2009

30 Data Sources: Eurostat,Nordregio Working
National Statistical Paper Nordregio.
Institutions, 2009:6
Data Sources: Eurostat, National Statistical Institutions, Nordregio.

Labour Market Potentials
Restricted access to labour remains a growth obstacle for in turn, is influenced by regional differences, e.g. in culture
many regions particularly in times of strong economic and social welfare systems.
development. As such it is important to make use of the
human resources available. The employment rate does not The Lisbon Strategy, the European Unions action
indicate only the number of jobs related to the population and development plan for economic growth and
aged 15-64 but also how well the available human resources competitiveness, sets specific targets for employment
are utilised in conducting ongoing economic activity. This, by 2010; an overall employment rate over 70%, female

Swiss regions. The lowest employment rates
Employment rate
CZ
45.0 EU27
can be found on Southern Italy and in BG
overseas employment
areas, where rate overthe
60%role
and anof informal
employment rate among In a similar way, the employment
35.0
HU rate among
MT
older
economyolderis high.
workers, e.g. aged 55 to 64, over 50%. workers
25.0 does not
LU
only reflect the potential of using this
The highest differences between experienced age group, but also the impact of the national
In 2008, one third of the European regions had pension
15.0 systems. On national level, employment among
the malereached
and female
the overallemployment rates can 57% the
goal of 70% employment, older workers
9.0
is highest
10.0 11.0
in12.0
the Scandinavian
13.0 14.0
Countries.
15.0
be foundfemalein Malta,
employment Southern
goal and 45%Italythe and in goal
employment Population aged 55-64 years as a share of
On regional level, some Swiss regions and rural regions in total
population, in %
some Greek
for olderregions,
workers.with
In thisa sense,
gender it is gap
clear upthat unused the UK score well. The lowest employment rates among
labour force potentials exist in Europe. In the graphic older worker can be found in the small states of Malta and
to 30%-unit. The most balanced situation
reproduced below, regional performance in comparison to Luxembourg, and in some Hungarian, Polish and southern
can be average
foundemployment
in Finland, in the EUinis presented
some from city a gender The employment situation among
Italian regions.
regions perspective.
in Northern Germany and in persons with immigrant background gives
Scottish highlands, where the gender another illustration
The employment to the
situation among regional use anof
persons with
On a national level, the overall employment rate is over immigrant
labour background
force provides another
potentials. All EU illustration of the
countries
differences are only marginal. There is a
70% in seven Northern and Central European countries, regional use of labour force potentials. All EU countries
clear south–north
with Denmark polarisation,
and the Netherlands which may On a
at the forefront.
have an overall employment rate over 50%,
have an overall employment rate over 50%, but the
have several
regionalexplanations, from
level, the highest rates can the social
be found in Northern but the employment
employment rate among
rate among immigrants is seldomimmigrants
above 50%.
welfare systems, e.g. access to child care and in some
and Eastern Scotland, the Åland Islands (FI) and is seldom above 50%. The immigrant’s
The immigrant’s employment rate is highest in Portugal
Swiss regions. The lowest employment rates can be found and Sweden and lowest in the Baltic
employment rate is highest in Portugal and States. Surprisingly,
parental incompensation
Southern Italy and insystems, to where
overseas areas, more the role of the level of tertiary education of international migrants
subjectivethereasons relatedis still
informal economy to high.
labour culture Sweden and tolowest
does not seem affect thein the Baltic
employment States.
situation very
and female involvement. Surprisingly,
much. the level of tertiary education
OnThe thehighest
otherdifferences
hand, the between
highmale share and female of international migrants does not seem to
employment rates can be found in Malta, Southern Italy Data Sources: Eurostat, National Statistical Institutions,
of femaleand inlabour
some Greek force participation
regions, with a gender gap inof up to effect the employment situation very much.
Nordregio
Northern30 percentage
Europepoints. compared to the
The most balanced situation can
countriesbeoffound Central andinSouthern
in Finland, Europe
some city regions in Northern 85
Germany and in the Scottish highlands, where the gender Educational attainment
implies that the Northern countries cannot
differences are only marginal. There is a clear south–north levels of international
Immigrants employment rate in 2005
compensate for ageing

polarisation here, whichby increasing
may have severalfemaleexplanations, 75 migrants on tertiary level
participation
from the in social
the labour market
welfare systems, e.g.in thetoway
access childcare and < 20
that manyparental
othercompensation
Europeansystems, countries
to morecan.subjective reasons 20 - 30 PT
related to labour culture and female involvement. 65 IS
In a similar way, the employment > 30
SE
all rate among older Old workers does notin 2008
age employment only RO FR
55 CH
n reflect the potential of using this MT
s, experienced age 85.0
group, IS
but also the impact
he of the national pension systems. SEOn
45 HU NO
Employment rate, 55-64 years
75.0 NO
es national level, the employment among CH older LV
n workers is highest in the Scandinavian
65.0 35 SI
EE
me Countries. On 55.0 regional level, some Swiss
IE FI
LT
es regions and rural 45.0
regions in theEU27 UK scoresCZ 25
25 35 45 55 65 75 85
n well. The employment rates among older BG
al worker can be 35.0 found in the small states of

HU
Total employment rate 2008
Malta and 25.0 Luxembourg, LU and in some MT
n Hungarian, Polish and southern Italian Data Sources: Eurostat, National Statistical
n regions. Institutions, Nordregio
15.0
9.0 10.0 11.0 12.0 13.0 14.0 15.0
n Population aged 55-64 years as a share of total

population, in %
p
n On the other hand, the high share of female labour
ty The inemployment
force participation Northern Europesituation
compared to among
the
n persons
countries of with
Central immigrant
and Southern background
Europe implies gives
that
er another illustration to the regional use of
the Northern countries cannot compensate for ageing by
increasing female participation in the labour market in the
a labour force
way that many other potentials. Allcan.EU countries
European countries
ay have an overall employment rate over 50%,
al but
32 the employment rate among immigrants Nordregio Working Paper 2009:6
NORDREGIO WP 2009:6
d is seldom above 50%. The immigrant’s
Labour Force Qualifications
The EU Green Paper on territorial Cohesion states that the the entire educational system are crucial elements in any
competitiveness and prosperity of territories increasingly calculation of territorial potential.
depends upon the capacity of the people and businesses
located there to make the best use of all their territorial On average, 23% of the European working age
assets. Therefore the level of education and the quality of population have a tertiary level education. At the regional
0 250 500 750

High Educated Labour Force aged population km
Persons with Tertiary Level Education (ISCED 5-6)
as a share of population aged 25-64 in 2007, in %
European University City

(with one or more universities)
NR02105
30.0 – 50.0
25.0 – 30.0
EU 23.3 20.0 – 25.0
15.0 – 20.0
Data source: Eurostat, NSIs. Iceland 2005
7.0 – 15.0
LFS adjusted series

students compared to population age 15-64
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25
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countries is anyhow remarkable. SwedenIn
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of the World’s of
top technolog
education and training activities whereas Shanghai
500 universitiesJiaoareTong
European. University provides
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10 top 20 and
universities medicine,
are shown inthe
the Universities
accompanying of Cambridg
table.
only app. Luxembourg
1% participates in Romania EU27 and of the most cited works in this field. In this
In terms of&
Bulgaria. ranking overall 2 Oxford, of University
ranking ARWU
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Ranking of of Londo
top 500
5 Malta World
universities and are
Universities) Karolinska
classifies
European. Institute
universities
On
in some (SE) can be name
key fields
European
and subjects. When looking at the world’s top universities
30 Bulgari
0
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the fields world
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20 sciences,
universities in their
are and fields.
shownmedicine,on
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0 1 2 3 4 5 6 7 8 9 10
theUniversities
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of Cambridge Oxford,of University
overall
25
ISCED 5-6 level students, in % ranking
College Data
ARWU
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and Centre
(Academic
Karolinska for Ranking
Institute World-Class
(SE) ofUniversities
can be seen of
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world leaders in
Shanghai their
Universities) fields.
Jiao Tongclassifies universities
University, Eurostat, National
Life-long Learning, in %
Finland
Tertiary lev el students (ISCEDKingdom
5-6) as a % share of population aged 15-64.
20
Lif e-long learning : Persons aged 25-64 participating also after someInstitutions,
statistical
of in education and
Sweden key fieldsNordregio.
and subjects.
training as a population aged 25-64. Both in 2007 Data Sources: Centre for World-Class Universities
15
The Netherlands When looking at the world top universities
of Shanghai Jiao Tong University, Eurostat, National
Austria
In order to maintain
Slovenia
labour force qualifications at a in the Institutions,
statistical fields of natural sciences, technology
Nordregio.
high There are aproximately 800 cities
10 level and up-to-date the level of life-long learning,
EU27
in and medicine, the Universities of Cambridge
Europe containing one or more university & Oxford, University Collage of London
defined Luxembourg
as the share of adults aged 25-64 in education
orand
5training, isMalta
higher a useful
the European labour
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force
institution. This and Karolinska Institute (SE) can be named
aged population currently
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Bulgari Romania Greeceproducers as world leaders in their fields.
participates
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0 1 2 3 4 5 6 7 8 9 10
ISCED 5-6 level students, in % Data Sources: Centre for World-Class Universities of
34
Tertiary lev el students (ISCED 5-6) as a % share of population aged 15-64. Shanghai Jiao Tong University,
Nordregio WorkingEurostat,
PaperNational
2009:6
Lif e-long learning : Persons aged 25-64 participating of in education and
training as a population aged 25-64. Both in 2007
statistical Institutions, Nordregio.
Research and Development Potentials
High levels of business and public expenditure in research In Barcelona in 2002 the aim of spending at least 3% of
and development (R&D) is one of most important GDP on R&D by 2010 was added to the Lisbon Strategy.
preconditions for innovation. R&D investments may be Of this, two thirds was to be financed by the business
interpreted as an indicator of the willingness to continually sector. According to latest data, only Finland and Sweden
revise and create new products or solutions to new of the EU countries have reached the level of 3% or more
challenges. R&D investments as a share of GDP (GERD). Together
with Austria, Belgium, Germany and Luxembourg these

measured by GERD as a share
correspondence between of GDP, public is and Robert Bosch (DE) Automobiles & parts 3560.0
clearly responding to a high level of private level. A
privately funded R&D on a national AstraZeneca (UK)
Alcatel-Lucent (FR)
Pharmaceuticals
Telecommunications equip.
3448.6
3368.0
R&D-expenditure.high level Inof regions public R&D-expenditures,
with low Siemens (DE) Electrical components & equip. 3366.0
measured byareGERD as aones

share oftheGDP,
BMWThe
is €. The dominant
(DE) outputAutomobiles
from &R&D parts investments 3144.0
public R&D-expenditures,
six EU countries alsothe pattern
the only is less
where Business sectors here were automobiles & parts,
clear. Overall, clearly theresponding
enterprise sector
Nordic to atwo
financescountries,
over highthirdslevel
asofwell
GERD. At the can
of private be measured
telecommunications e.g. and
equipment in pharmaceuticals.
the terms Theof
R&D-expenditure.
regional level the picture isIn regions
slightly different.with low employment
Altogether, highest performingand 27 individual patents. companiesInamong total,
the
as Switzerland, Austria andNUTS2 Germany, have The output from R&Deuros? investments
public R&D-expenditures, the pattern is less approximately 3.4 million persons in EU
there are 21 European regions with a R&D level top R&D investors invested over one million each
figures well above the These
EU can be In measured e.g.theinEuropean the terms
top 10 of
ofclear.
3% orOverall,
more. theaverage
regions
Nordic arelevel.
found aroundas
countries, Finland
well workin R&D activities.
with the table below,
research and development
and Sweden, in Southern and Eastern Germany, South- employment
R&D investors are listed. and patents. In total,
as Switzerland, Austria and Germany, have activities. The number of patents gives an
East England and the regions of Steiermark (AT) and approximately 3.4 million persons in EU
figures
Strední Cechywell
R&D(CZ).
above the(in%
EU
In Pohjois-Suomi average level.
of GDP)(FI), Stuttgart (DE) indication Thework
output offroma country's
R&D investments inventive activity
can bedevelopment
measured
Business and expenditures with research and
and Västsverige (SE) the level is even over 5%. e.g. in
and capacity terms of employment and patents. In total,
3,0
activities. to Theexploitnumber knowledge of patents gives and an
approximately 3.4 million persons in the EU work with
Finland translate it into
indication ofpotential
a country's economic
inventive gains.
activity
Business R&D expenditure (in % of GDP)
Business and R&D expenditures (in% of GDP) research and development activities. The number of
2,5 3,0 Sweden Since
patentsandpatents
gives an capacity are to
indication often
of a exploit
country’srelated knowledge
inventive toactivity
theand
Switzerland
Finland location translate
and capacity of the it
to exploit into
headquarters, potential
knowledge economic
rather
and than
translate gains.
the
it into
Business R&D expenditure (in % of GDP)
2,0 2,5
Austria
Sweden
actual Since
potential economic
place of thepatents gains.
invention, are
Since often
patents
only arerelated
the often to
related
national the
Switzerland
Germany to the location
location of of headquarters,
the headquarters, rather than the actual
ratherwhichthan the
2,0 Denmark figures
place ofare shownonly
invention, in the
thenational
figurefigures below, are shown
1,5
Luxembourg France Austria
Iceland illustratesactual below,
in the figure the
placetotal of invention,
numberthe
which illustrates
only of the
total
national
patent
number
Germany
figures are shown in the figure below, which
1,5 EU27 Denmark
applications
of patent applications andand high-tech high-tech patent
patent applications
1,0
Ireland
Luxembourg France Iceland sent illustrates
to the European thePatent totalOffice number
– EPO of
related patent
to
Spain
Norway
EU27
applications
total applications
population
sent
in the
to the
and
country. In
European
high-tech
general the
Patent
European patent
0,5 Malta
1,0
Ireland
Norway Office
patenting – EPO
activity is
applications related sent to
highest tototal
both population
in relation
the European to all and in
Patent
Bulgaria
0,5 Malta
Lithuania
Spain
the country.
high-tech
Officepatents inInGermany,
– EPO general related tothe
Luxembourg,
total European
the Nordic
population in
Slovakia Estonia Countries and Switzerland.
0,0 Bulgaria Lithuania
patenting activity is highest
the country. In general the European both in the
0,0 0,2
0,0
0,4 Slovakia
0,6 0,8 Estonia
1,0 1,2 1,4
relation to allEurostat,
patenting
Data source: and The
activity high-tech
is
2008highest patents
EU IndustrialbothR&D inin the
0,0 expenditure
Public R&D 0,2 0,4 (in %0,6
of GDP) 0,8 1,0 1,2 1,4
Germany,
Investment Luxembourg,
relationScoreboardto all and the Nordic
high-tech patents in
http://iri.jrc.ec.europa.eu/
Public R&D expenditure (in % of GDP)
Source: European Innovation Scoreboard Database, 2008 Countries and Switzerland.
Germany,
research/scoreboard_2008.htm Luxembourg, the Nordic
Source: European Innovation Scoreboard Database, 2008 Countries and Switzerland.
Patents per 1 000 000 inhabitants in 2006
At R&D the iscompany conducted bylevel many the differentEUactors, e.g. 60 Patents per 1 000 000 inhabitants in 2006
universities, At the company
companies, state level the
agencies or EU
specialized 60
Industrial institutions.
R&D Together, Investment these Scoreboard
actors create a research
Industrial R&D 2000
presents information Investment Scoreboard FI
environment with on companies
a potential to contribute to innovation. 50 FI
presents information on 2000 companies
from aroundA partial thecorrespondence
world reporting exists between majorpublic and 50
from funded
privately aroundR&D theon the worldnationalreporting
level. A high major
level
investments in R&D. Around 1000 of those
ofinvestments in R&D. Around
public R&D-expenditures, measured1000 by GERDof those as a 40
are companies whose registered
are companies whose registered offices are offices are 40 SE
SE
High-tech patents
share of GDP, clearly responds to a high level of private

High-tech patents
in the EU. in the Altogether

R&D-expenditure. EU. Altogether these with
In regions 1000 low EU
these public
1000 R&D- EU LU
CH
CH
LU
companies
many invested
expenditures,
companies
R&D activities.
the126
investedbillion
pattern
In 126 €
is less clear.to
the billion R&D
Overall,
table and
the Nordic
€ to R&D
below, the
30 30
NL
DE DE
countries, as well as Switzerland, Austria Germany, NL
activities
nies, in
activities
European
have
2007.
figures well in
top Three
2007.
10 the
above R&D out
Three of
investors
average outfive of
EU level.are listed. five
companiescompanies
ons. came from cameFrance,from GermanyFrance, Germany or or 20 20 DK DK
the UK, the

arch Company UK, representing
representing a total a R&D-
ICB Sector total R&D-
R&D Investment
in 1000 € EU27 EU27
investment
of investment
of(FI) 88 billion
Nokia ofTelecommunications
88 €.billion equip. €.most
The The most 5281.0
10
Volkswagen (DE) Automobiles & parts 4923.0 10
dominatingdominating
rtial sectors
Daimler (DE) sectors
were
Automobiles &were
automobiles
parts automobiles
& &
4888.0
and parts,
parts, telecommunications telecommunications
Sanofi-Aventis (FR) Pharmaceuticals
equipment
equipment and 4419.4
GlaxoSmithKline (UK) Pharmaceuticals and
4563.0
pharmaceuticals. The highest performing 27

Robert Bosch (DE) Automobiles & parts 3560.0 0
el.pharmaceuticals.
A The
AstraZeneca (UK)
highest performing
Pharmaceuticals
27 3448.6
0
0 100 200 300 400 500 600
ures, individual companies

Alcatel-Lucent (FR)
among the top R&D
Telecommunications equip. 3368.0 0 100 200 300 400 500 600
individual companies
Siemens (DE)
among the top R&D 3366.0
Electrical components & equip.
All patents
All patents
P,investors
is investors invested over one million each
BMW (DE) Automobiles & parts
in
3144.0
invested over one million each in

vate At the company level the EU Industrial R&D Investment
low Data source: Eurostat, The 2008 EU Industrial R&D Investment Scoreboard
Scoreboard presents information
The output onR&D
fromData 2000 companies from The 2008 EU Industrial R&D Investment Scoreboard
investments
source: Eurostat,
less http://iri.jrc.ec.europa.eu/research/scoreboard_2008.htm
around the world reporting major investments in R&D.
can be measured e.g. in the terms of http://iri.jrc.ec.europa.eu/research/scoreboard_2008.htm
well Around 1000 of these are companies whose registered
employment
offices and patents.
are in the EU. Altogether these 1000 EU Incompanies
total,
have
approximately
invested 126 billion €3.4 million
in R&D persons
activities in 2007.inThree
EU
work
out of five with research
companies came from and
France, development
Germany or the
activities.
UK, The
representing
NORDREGIO number
a total
WP of patentsof gives
R&D-investment
2009:6 an
88 billion
NORDREGIOindication
WP 2009:6of a country's inventive activity
and
36 capacity to exploit knowledge and Nordregio Working Paper 2009:6
translate it into potential economic gains.
Since patents are often related to the
High-tech & knowledge intensive labour
The share of employment in knowledge-intensive industries mapped. These sectors are labour-intensive; employing a
may function as an indicator of regional competiveness total of 9.6 million people or 4.4% of the EU workforce.
and can be perceived as an important regional potential. High-tech innovation poles of scale, with extensive
employment in both sectors, are found in numerous
In order to identify potential hubs in Europe, North and Central European capital regions and in some
employment related to high-tech manufacturing and regions in England, Germany and Switzerland. The
knowledge-intensive high-technology services has been highest intensity is found in South-East England (NUTS1)

education, health & social work and to
recreational, cultural and sporting activities.
Employment in these sectors is relatively In a European context there have
highest in North
and Etelä-Suomi European
(FI). High-tech countries.
manufacturing hubsThis
are been multiple
In a European efforts
context there have to quantitatively
been multiple efforts
concentrated in Central and Eastern Central
part of KIS is in general more important in Europe, with to quantitatively identify and profile clusters. The major
the highest intensity in some German and Hungarian
identify and profile clusters. The major
challenge concerns difficulties in identifying linkages and
terms employment. In Cyprus, Italy,
regions. High-tech related service regions are found in challenge
dependencies betweenconcerns difficulties
various stakeholders. to identify
Therefore,
Luxembourg and andSpain,
numerous capital regions the inlevel
in many regions Northernof focus haslinkages
often beenand laid dependencies
on agglomerations,between
rather than various
employment
Europe. in both KIS sectors is low. stakeholders.
on clusters Therefore, offocus
per se. Still, agglomerations has often
knowledge
and competence within a particular field, e.g. high-tech
been on agglomerations, rather than on
manufacturing, research and development activities
togetherclusters. Still,services,
agglomerations of knowledge
Employment in KIS
with advanced are important resources
30.0 NO
SE to many and
clusters.competence withinto stress
It is however important a particular
that high field,
DK
e.g. high-tech manufacturing, research and
performing clusters are not always of a high technology
25.0 character.development activities together with
CH
advanced services, are important resources
The Danish high-tech wind
20.0 EU27
LU to many clusters. However, it is important
LT power cluster
to stress that high performing clusters are
Other KIS
Denmark displays a significant level of performance

15.0
not always of a high technology character.
with regard to wind energy generation. It is actually one
BG ES CY
National
of the four worldwide leadersand
alongregional policies for
with Germany,
10.0
RO
cluster
Japan and development
the United may
States. Its case be of strong
is remarkable
considering the size differences in terms of
importance, particularly for small or population,
5.0 area, economy, and other important indicators in
medium-sized firms. Participation in clusters
relation to the other three countries. Regarding high-
may provide
tech innovative solutionsthe critical
to wind powermass of public and
technologies,
0.0
0.0 5.0 10.0 15.0 20.0 25.0 30.0 private recourses required
Denmark has developed 181 examples of patents for innovation
Market KIS
Market KIS including NACE Rev 1.1. codes: 61, 62, 64-67, 70-74; Other KIS
between and
1995competence
and 2005 thus development to compete
highlighting the long-
standing Danish tradition of performance in this
codes: 80, 85, 92
in a global economy.
technology class. According to the OECD patents
Knowledge-intensive high-tech-nology services are database (2008) Denmark has become a worldwide
The new approaches to economic
part of a wider field of knowledge-intensive services innovative Eurostat,
Data Sources:
leader along with other outstanding regions Norden
policy have
(KIS). This increasingly
branch contributes tostressed clusters
innovation processesas such as Tokyo (JP), New South Wales (AUS) and other
a potential asset for competitiveness.
by providing services, products or processes both to the European regions such as Schleswig-Holstein and
manufacturing and service sectors. In general, knowledge Weser-EMS (DE) in this field.
intensiveness indicates the vital importance of knowledge, Extracted from: Nordic Globalisation Barometer 2008
creative problem solving and abstract thinking. Also the role
of professionals and special ‘know-how’ is often stressed. National and regional policies for cluster development
There are two main types of knowledge and competence may be of significant importance, particularly for small or
intensive services, market services and other - more medium-sized firms. Participation in clusters may provide
welfare-related -services. Market KIS refers to knowledge- the critical mass of public and private recourses required
NORDREGIO
intensive marketWP 2009:6
services (e.g. water and air transport, for innovation and competence development to compete
real estate activities, renting of machinery and equipment in a global economy.
without operators) including financial intermediation and
high-tech services. Employment in these sectors is, in Data Sources: Eurostat, Norden
relative terms, highest in Luxembourg, Switzerland and
in the northern European countries. Other KIS refers
to education, health & social work and to recreational,
cultural and sporting activities. Employment in these
sectors is relatively highest in north European countries.
This part of KIS is, in general, more important in terms
employment. In Cyprus, Italy, Luxembourg and Spain, the
level of employment in both KIS sectors is low.
The new approaches to economic policy have

increasingly stressed clusters as a potential asset for
competitiveness. Clusters can be understood as regional
concentrations of specialized companies and institutions
that are mutually dependent through multiple linkages
and spill-over’s, providing an environment conductive to
innovation and knowledge development.

Innovation and entrepreneurship
In recent years increasing emphasis has been placed on product to a complex system of solutions, creating new
innovation as a driver of economic and regional growth. markets or improved productivity. Examples of sectors
Innovation concerns the transformation of resources, e.g. where new systems solutions may have a strong future
R&D-expenditures and human capital, into commercialised impact are health care and energy. Most innovations are
products (goods and services), processes and procedures. created in cooperation between actors in the private and
Innovation may be anything from an improved technical public sector. Focus has often been on R&D-based, high

tech innovations, but lately interest in service innovation learning. Combining both indicators, countries with higher
has increased. figures include the Nordic Countries, the United Kingdom
Regions or countries with high innovation scores have and Switzerland.
a higher capacity to “develop and advance further” (IFIA,
2006), showing higher levels of motivation, stimulation and Entrepreneurship is another important driver
adaptation to societal and technological changes. Regions of innovation, economic growth, productivity and
with innovation potential also have better conditions and employment. Entrepreneurship is an important policy area
abilities to develop effective solutions to emerging global for stimulating innovation capacity. Both entrepreneurship
challenges. Regional and national innovation potentials and innovation share in common the characteristic
are summarized by the European Innovation Scoreboards challenge of introducing something ‘new’ to the market.
(EIS), including indicators in the fields of knowledge Entrepreneurship contributes to a dynamic innovation
creation, intellectual property & capital, and high-tech process, by stimulating the introduction and dissemination
& manufacturing assets among others. The map below of ‘new’ innovative products and processes throughout
shows the results of the EIS for European regions in the economy, through new or existing companies. The
2006-2007. existence of a strong national and regional entrepreneurship
culture signifies a higher potential to create high-growth
The top regions, with high scores are found in entrepreneurs and new start-up activities. The figure
Sweden (Stockholm, Västsverige, Sydsverige and Östra shows that there are more enterprise start-ups (births) than
Mellansverige), Germany (Oberbayern, Karlsruhe, Stuttgart deaths in EU Member States for which data is available. In
and Braunschweig), Finland (Etelä-Suomi), and France general, birth rates are higher than death rates at national
(Île de France). Regions in Greece, Portugal, Romania and levels with some exceptions (Hungary and Italy).
Spain display much lower performance levels. In general,
capital city regions have a higher innovation potential. The Nordic innovation capacity
This may be explained by higher density and access to a
The Nordic countries are world leaders when it comes
critical mass of various recourses. A diversified business
to integrating technology into everyday life and business
sector, higher R&D-expenditures, a concentration of the
models denoting a higher capacity in the area of ICT.
knowledge labour force, educational services, qualified
Regarding knowledge creation, significant investment
human resources and higher levels of entrepreneurship
in research and development have contributed
all of which are considered key features contributing
progressively to the improvement of the framework
to increases in the potential for innovation. Sweden,
conditions and performance of this activity. With
Switzerland, Finland, Denmark, and Germany appear as
regard to human resources the region faces a challenge
innovation leaders, with EIS scores well above that of the
where competition will be increasingly based on the
EU27 average while other countries like Estonia, Spain,
individual’s skills, experience and talent. Improvement in
Italy, Malta, Hungary and Slovakia are trailing, with scores
these fields will continue in the future. Finally, the region
below that of the EU27 average.
presents an innovation potential in supporting a more
growth-oriented entrepreneurial culture by improving
general framework conditions for entrepreneurship and
faces a challenge in formulating a Nordic-embedded
entrepreneurship policy able to commercialise high-
growth entrepreneurship.
Extracted from: Nordic Innovation Monitor, 2009
The employer enterprise birth and death rates are

compiled as the number of births and deaths of employer
enterprises, as a percentage of the population of active
enterprises with at least one employee. These indicators
are an essential measurement of entrepreneurial activity
(OECD).
Human resources are also crucial to innovation and Data Sources: European Innovation Scoreboards,
economic growth. Human resources supply the labour Nordregio, OECD, Norden, IFIA
market with advanced knowledge, one of the cornerstones
for innovation. According to the OECD, human capital
has become as important as financial capital for innovation
in the new economy, where knowledge is the source of
wealth creation. Two of the most relevant indicators in
defining human capital are the percentage of the population
with a tertiary level education and participation in lifelong

Economic Performance and Productivity
Economic performance, measured as GDP per capita to produce higher levels of income for their citizens. A
at current market prices in purchasing power standards, high level of productivity, measured as GDP per person
gives an indication of the value of all market and some employed, assumes an efficient use of available resources in
non-market goods and services produced within a region. economic activities. With a strong economic performance,
The level of productivity, in turn, sets the sustainable the potential for regional investments in, for example,
level of prosperity that can be earned by an economy. In physical infrastructure, R&D, competence development
other words, more-competitive economies tend to be able and social welfare systems, increases. This may give further

potential to strengthening the human and physical capital employee may be lower.
for future regional development
Excluding taxes and subsidies on products from GDP,
In terms of economic performance, significant we may use the Gross Value Added (GVA) to measure the
differences exist between European regions. GDP per value of goods and services produced in a specific area or
capita is highest in central and northern European, and sector of an economy. GVA is a useful tool to describe the
particularly in capital regions. Numerous smaller regions economic base in the region. In the table the GVA by main
in these parts of Europe however also score well. Most economic sector is presented.
eastern European regions and some southern European
regions outside the main cities are located at the other end On average 3.4% of the EUs GVA comes from primary
of the scale. production though in Bulgaria and Romania the share is
almost 9%. Overall, 29% of European GVA comes from
Main NACE sectors share in GVA, in 2006
manufacturing activities, but in the Czech Republic an d
0% 20% 40% 60% 80% 100%
Slovakia the share is nearly 40%. In total, 67% of European
AT GVA comes from services, with Luxembourg being the
BE most service-oriented country with an 84% share.
BG AB
CY In the period 2000-2008 the annual European GDP
CZ CF
growth has been 1-3%. The increase took place in all EU
DE GP countries, despite a rather unstable development of Malta.
DK
Due to small market size. The turning point for GDP
EE
growth is clearly visible in the quarterly GDP figures in the
ES
EU EU countries from the last 18 months.
FI GDP at market prices
FR GDP change at current prices, quartery data Jan 2008 - Jun 2009
GR 120
HU
IE 115
SK
IT GDP at market prices GR
GDP change at current prices, quartery data Jan 2008 - Jun 2009
LT 120
CY
110 MT
LU BE
FR
LV 115
SK
PT
Index, 1/2008 = 100
105
MT GR
CY
IT
AT
NL 110 MT
BE
ES
NL
PL FR
PT
100 DE
PT
Index, 1/2008 = 100
105 IT CZ
AT DK
RO ES
NL 95 SI
100 EU27
SE DE
CZ FI
SI 95
DK
SI
LU
IE
90
SK EU27
FI RO
HU
UK
LU
90 IE LT
RO 85 PL
HU
LT EE
When looking at productivity this basic pattern is

85 PL
EE
UK
LV
80
repeated. Both in terms
80
of economic performance and UK
LV
1/2008 2/2008 3/2008 4/2008 1/2009 2/2009
productivity, the European
1/2008 city
2/2008 regions
3/2008 of4/2008
inner1/2009
London,
2/2009
No dat a f o r B G & SE
Brussels and Luxembourg are in a class of their own,
No dat a f o r B G & SE
followed by Paris and Hamburg. However, there are some In the western and northern European countries GDP
notable exceptions here. A significant number of regions growth was rather stable during the three first quarters of
outside the main city regions in northern Europe and 2008. From the last quarter of 2008 to mid 2009 GDP
Austria have a lower productivity than the EU average. In decreased by an of average 5 percentage points. In the
France, however, the employment rate is rather low but Czech Republic, Hungary, Lithuania, Poland and Romania
productivity is among the highest in Europe. This may be GDP grew rapidly the three first quarters of 2008 and
an outcome of the regional industry structures. Global from the last quarter of 2008 it decreased rapidly. In
challenges have resulted in rationalizations of traditional Estonia, Ireland, Latvia and the UK GDP began to decline
manufacturing industries. For regions dominated by these at a steep rate already from the beginning of 2008. In
sectors, employment may have diminished, resulting in a Cyprus, Greece, Malta and Slovakia GDP has fluctuated
high level of productivity per employee. In other regions, but the situation in the second quarter of 2009 was in
due to an expanding services sector, with increased general better than in the first quarter of 2008.
employment and a lower level of efficiency, measured
by traditional standards, the level of productivity per Data Sources: Eurostat, Nordregio

Territorial cooperation
Cross-border co-operation may reduce the barriers consequence was that previous functional regions
that borders represent to the movement of goods and were divided and cities lost important parts of their
people and interaction across borders in a wider sense. hinterlands.
Over the centuries the European territory has been
transformed through a vast number of new demarcations In the Proposal for a Council Decision on Community
and re-demarcations of the nations. An often unintended Strategic Guidelines on Cohesion, the aim of the new
Map Source: ESPON-Interact Cross Border Cooperation; the map has been used with permission of the authors.
European Territorial Cooperation policy is to promote Polycentrism” hypothesised that large economic disparities
stronger integration of the territory of the Union in all in GDP per capita between cross-border regions in the
its objectives. Territorial cooperation may be seen then enlargement area provided significant potential for change
as a means to define, coordinate and implement a variety and territorial cooperation and integration within them.
of common actions oriented to the fulfilling of specific The ESPON-Interact study on Cross Border Cooperation
common challenges and needs by exploiting its joint proved that in fact large economic disparities within
opportunities on the bases of cooperation and integration. territorial cooperation programmes do not seem to be
In so doing, regions with a higher intensity of cooperation either an impetus or a barrier to the intensity of project
projects tend to overcome common problems in a more cooperation. Cooperation indeed exists among cross-
efficient way while also compensating for their weaknesses border regions where only one of the regions exhibits
in respect of critical factors or issue areas such as services, significant economic strength. (Green Programmes in the
infrastructure, innovation or labour markets. Territorial table).
cooperation should be thought of then as the spatial
dimension of European integration. That situation is visible along regions with borders
between Old and New Member States (Convergence or
on Territorial Cooperation Intensity - Top programmes Phasing-in regions next to Competitiveness & Employment
or Interreg IIIA Programmes ** Countries CBC projects
regions) but also in Interreg A programmes involving
Convergence regions in the Old Member States.
der 1 Spain - Portugal ES - PT 556
2 Italy - Austria IT - AT 449
der 3 Italy - Slovenia IT - SI 420 Intense territorial cooperation potential exist then
07- 4 Bavaria - Austria
5 Ireland-Northern Ireland
DE - AT
IE - UK
372
293 regardless of cross border asymmetries by involving both
are 6 Bavaria - Czech Republic DE - CZ 276 disparate territories in terms of socio-economic indicators
7 Austria - Slovenia AT - SI 267
der 8 Italy - Switzerland IT - CH 243
and third countries, as long as challenges and priorities
remain common and relevant themes are addressed.
ce 9 Sweden - Norway
10 France/Wallonia - Flanders
SE - NO
BE- FR
226
216
nd 11 Austria - Czech Republic CZ - AT 209
12 Austria - Hungary
13 Slovakia - Czech Republic
AT - HU
SK - CZ
193
186
The EU Macro regional strategy
her 14 Czech Republic - Poland PL - CZ 171 The launching of the European Union Strategy for
15 Mecklembourg Vorpommern-Poland DE - PL 152
the Baltic Sea Region (EUSBSR) in June 2009 saw the
ght 16 France -Spain ES - FR 150
commencement of the first application of a macro-
17 Greece - Bulgaria GR - BG 130
on 18 Alcotra (Italy-France) IT - FR 125 regional strategy within the context of European
ity 19 Islands (Italy-France)
20 Ireland - Wales
IT - FR
IE - UK
113
108 Union cooperation. The elaboration of macro-regional
us CB regions with high assimetries or economic disparities
strategies makes it possible to promote the territorial
of dimension of EU policies and cooperation via the more
n- Based on ESPON-Interact KTH database on Interreg III A, 2006 effective coordination of existing resources. A macro-
** Programmes from Interreg III-A included in tInterreg IV-A
region may be seen as a means to define, coordinate and
ia, implement a variety of common actions oriented to fulfil
nd, The European cross border co-operation activities may
Intense territorial cooperation
take place either on internal or external border regions. particular macro-regional common challenges and/or
ia, potential
The internal exist then regions
border NUTS3 regardless of for
are eligible cross
cross- needs by exploiting its joint opportunities on the bases of
ce- border asymmetries by involving both
border cooperation under the Structural Funds 2007-2013. cooperation and integration between all actors involved
ch disparate territories
External NUTS3 in terms
border regions of for
are eligible socio-
cross- (regions, state, non-state, public, private, entrepreneurs,
border cooperation under the Instrument for Pre-accession citizens, political and societal stakeholders, etc). A macro-
economic indicators and third countries, as regional strategy may also successfully undertake actions
ea Assistance
long as (IPA) or the European
challenges Neighbourhood
and priorities remainand
Partnership Instrument (ENPI). with the support of a common network of thematically
is common and relevant themes remain oriented organisations, stakeholders able to cover a
mic addressed.
Cross border areas with higher potentials for territorial sufficient number of activity fields. Macro regions
or cooperation might include those with a long historical may exist regardless of strictly defined boundaries and
on tradition potentially involve disparate territories in terms of
The EUofMacro cooperation
regionalasstrategy
well as a high intensity of
socio-economic indicators and third countries as long as
m” projects with regard to previous programming periods.
the challenges remain common and relevant themes or
ies That
Theislaunching
the case for
of Interreg A programmes
the European such asfor
Union Strategy Spain-
Portugal,
the BalticItaly-Austria, Italy-Slovenia,
Sea Region (EUSBSR) in JuneBavaria-Austria,
2009 saw topics are addressed
der the commencementIreland,
Ireland-Northern of the Bavaria-Czech
first application Republic,
of a
da macro-regional strategy within the context
Austria-Slovenia, Italy-Switzerland, Sweden-Norway, of Data Sources: ESPON-Interact on Cross Border
ial European Union cooperation. The elaboration
France-Wallonia-Flanders and Austria-Czech Republic. of Cooperation; ESPON 1.1.3 Öresund Committee,
macro-regional strategies makes it possible to
m. promote the territorial dimension of EU policies
Nordregio
oss Another issue which might generate a greater potential
and cooperation throughout a more effective
for territorial of
cooperation is resources.
the existence of socio-
act coordination the existing A macro-
economic
region may be seen as a means to define, coordinate or
asymmetries between participant regions
ial countries. The ESPON 1.1.3 project on “Enlargement
and implement a variety of common actions and
to oriented to fulfil particular macro-regional common
to challenges and/or needs by exploiting its joint
on. opportunities on the bases of cooperation and
integration between all actors involved (regions,
ss- state, non-state, public, private, entrepreneurs,
Accessibility
Accessibility is not an issue of transport networks alone.

Policies targeting increased accessibility in terms of
territories cannot be constrained by the sector instruments
of transport policy. When defining accessibility it is
important to define the object, the purpose and the
means, in other words the ‘what’, ‘why’ and ‘how’ driving
the need for increased accessibility. Accessibility reflects
the territorial potential through two main dimensions: 1)
opportunities and activities (economic, industrial, etc) to
be connected with; and 2) efforts to do so in terms of
means, time, and distance and thus, cost.
Regions successfully able to increase their accessibility

potential are those able to determine accessibility measures
that reflect the specific needs of each region’s activities
and/or industries taking into account the geographical
location of the markets they target, focusing also on
existing infrastructural obstacles to industrial and
economic development. Accessibility indicators are also
useful for assessing the position of a specific territory in
the European space.
In combination with an assessment of the service

provision levels in each region and of the accessibility
challenges faced by the local activities and industries, these
indicators can help in the design of new policy responses
customized to each territory.
Areas with some relevant concentration of population

tend to have a concentration of activities (economic,
industrial, etc), more services and infrastructure and
therefore higher levels of accessibility to them. The top
map above illustrates potential accessibility to population
at the EU level. It shows favourable values around major
European urban agglomerations as well as central Europe
and the ‘Blue Banana’ (Europe’s most densely populated
area).
Accessibility indexes may however vary depending

on the particular factors to be analysed, such as: i) ‘what’
to reach (i.e. accessibility to -higher education, hospitals,
employment, etc); ii) the means employed to do so
(road, rail, sea, air); and iii) the scale used for the analysis
(local, regional or continental). The second map shows
one example of local accessibility indicators measuring
the travel-time to facilities of higher education by car in
Europe.
Different values in that map are produced and

favourable figures are now shown around centres hosting
universities, polytechnics or other educational institutions,
Source: RRG Spatial Planning Database.

showing different results and patterns. An example of this is presented in the map below
which shows the combination of accessibility by road to
Accessibility potentials at the European level are population centres over 10 000 inhabitants in relation to
attached to those competitive and sustainable functional demographic trends at a regional scale. This brings to light
regions which have a satisfactory level of access to services the existence of ‘clusters’ of settlements with population
and balanced regional economies. The regions either have increases and adequate accessibility to main population
an endogenous population potential which is sufficient to centres. This, combined with activities in some of these
develop diversified and robust functional economic areas areas (R&D, mining, high-tech, etc) gives an idea of future
or they have successfully integrated with neighbouring potentials as a result of the concentration of population,
areas. However, local and regional accessibility values are economic activities and high accessibility. Accessibility
also distinct from European accessibility indexes, and are measures then can help in the identification of potentials
therefore more relevant for European positioning than for for further integration between areas with complementary
regional economic development. profiles, especially in peripheral regions such as the
NSPA’s.
One regional example (the Northern Sparsely Populated
Areas –NSPA- of Sweden, Norway and Finland) can Data Sources: RRG, Nordregio, EU Parliament study
be used to explain this situation. Indicators of potential 2007
accessibility at a European level show a poor level in the
NSPA when compared to the rest of Europe; it is only by
shifting the scale of analysis to a regional one that new
potentials, not identifiable within the context of large-
scale pan-European accessibility indexes at the European
scale, can be highlighted. Population centres invisible
in the European indexes emerge giving new results and
stimulating possible new potentials.

Abbreviations
ARWU Academic Ranking of World Universities

EIS European Innovation Scoreboards
ENPI European Neighbourhood and Partnership Instrument
ESDP European Spatial Development Perspective
ESPON European Spatial Planning Observatory Network
EUSBSR European Union Strategy for the Baltic Sea Region
GERD Gross Domestic Expenditure on R&D
GDP Gross Domestic Product
GHG Greenhouse Gases
GVA Gross Value Added
HTM High-Tech Manufacturing
IPA Pre-accession Assistance
KIS Knowledge-Intensive Services
LAU Local Administrative Units
NACE Nomenclature Generale des Activites Economiques dans I`Union Europeenne / General
Name for Economic Activities in the EU
NSPA Northern Sparsely Populated Areas
NUTS Nomenclature of Territorial Units for Statistics
PPS GDP per capita in Purchasing Power Standards
R&D Research & Development
SMESTO Small and Medium Sized Towns

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Territorial potentials

in the European Union

Ole Damsgaard, Maria Lindqvist,

Ole Damsgaard, Maria Lindqvist,

The Nordic Council

The Nordic Council of Ministers

Swedish Presidency of the EU

The project work group at Nordregio consisted of the following members:

Stockholm, November 2009

Nordregio Working Paper 2009:6 7

Nordregio Working Paper 2009:6 9

10 Nordregio Working Paper 2009:6

Nordregio Working Paper 2009:6 11

1 Territorial Agenda of the European Union, Towards a More Competitive

Nordregio Working Paper 2009:6 13

14 Nordregio Working Paper 2009:6

Nordregio Working Paper 2009:6 15

Data source: Eurostat, EUs Green Paper, EU DG

7 Please see a definition for these regions in Green Paper on Territorial

16 Nordregio Working Paper 2009:6

© Nordregio & NLS Finland

Actual Land Cover & Potentials

0 40000 80000 120000

18 Nordregio Working Paper 2009:6

Nordregio Working Paper 2009:6 19

The Kiruna experience

The existence of mineral resources may be a challenge

Most mining projects have major impacts on the

20 Nordregio Working Paper 2009:6

Nordregio Working Paper 2009:6 21

In 2007, 40% of all new generating capacity installed in

In respect of renewable energies more generally,

In recent years the production of biomass energy has

In general, electricity generated by renewables in 2007

22 Nordregio Working Paper 2009:6

Nordregio Working Paper 2009:6 23

An important contribution to reducing GHG emissions

24 Nordregio Working Paper 2009:6

Nordregio Working Paper 2009:6 25

% share of population aged 65+ in 2020

are expectedStates.to be inwestern

% share of population aged 65+ in 2020

3.5 % units on average. The relative change is

average 17% majorof

Nordregio Working Paper 2009:6 27

0.5 Bretagne (FR) Data Source: Eurostat, Nordregio, EU DG.Regio

From a different EU NUTS2 region (both from other NUTS2

In an intra-EU context the working age population

28 Nordregio Working Paper 2009:6

Below average unemployment rate Above average unemployment rate

Nordregio Working Paper 2009:6 29

long-term unemployment is relatively higher e.g.

unemployment rates can bee.g.

unemployment is relatively highest in these LT(5.8)

regions. The relatively

9%. From the beginning of 2006 unemployment decreased EU27(7.0)

9%. 9%. From theemerging beginning ofin the

7%. However, due to economical crises in inhalf a

unemployment rate rapidly increased, back ES(11.3)

unemployment rate rapidly

during the fall 2009 will be crucial. During

2003 2004 2005 2006 2007 2008 2009

Data Sources: Eurostat, National Statistical Institutions, Nordregio.