Search

Despite the importance of interregional trade for building effective regional economic policies, there are very few hard data to illustrate such interdependencies. We propose here a novel research framework to predict interregional trade flows by utilizing freely available Web data and machine learning algorithms. Specifically, we extract hyperlinks between archived Websites in the United Kingdom and we aggregate these data to create an interregional network of hyperlinks between geolocated and commercial Web pages over time. We also use existing interregional trade data to train our models using random forests and then make out-of-sample predictions of interregional trade flows using a rolling-forecasting framework. Our models illustrate great predictive capability with R2 greater than 0.9. We are also able to disaggregate our predictions in terms of industrial sectors, but also at a subregional level, for which trade data are not available. In total, our models provide a proof of concept that the digital traces left behind by physical trade can help us capture such economic activities at a more granular level and, consequently, inform regional policies. [ABSTRACT FROM AUTHOR]

Relatedness is a popular concept for regional branching within Smart Specialisation. However, this proximity-network approach misses its regional perspective, making difficult its operationalization in regional policies. This paper advances the regional perspective of relatedness for improving prioritization in Smart Specialisation by combining the concepts of technological relatedness and sectoral specialization. Using a four-stage methodology, we reveal potential Smart Specialisation priorities for a set of 16 European regions considering both cognitive links arising through technological relatedness and their regional structures. The proposed methodology reduces the stress of regional stakeholders participating in entrepreneurial discovery processes by providing a narrower set of priorities. [ABSTRACT FROM AUTHOR]

This paper emphasizes the role of regional determinants in the technical efficiency of the Greek economy. We employ a regional production function which is simultaneously estimated with an inefficiency equation. The results underline the considerable and growing core-periphery disparities in technical efficiency. They show the significant efficiencyenhancing impact of intra-regional market access and its dispersion. They also demonstrate that interregional market access, specialization, sectoral concentration and human capital exert a positive but varying influence on the efficiency of Greek regions. [ABSTRACT FROM AUTHOR]

Since the mid-15thcentury, the space economy in Africa has assumed an imperial outlook under the influence of European mercantilism. It was the era that unfettered capitalism prevailed as economic orthodoxy for control of regional economies. At the inception of fettered capitalism in the mid-20thcentury, an imperial structure that served western interests under colonial rule was further entrenched in many African countries. At the turn of the 21stcentury, neoliberalism emerged as global economic orthodoxy, and free-trade relations implemented to manage Euro-American and Chinese mercantilism worldwide. This unleashed epistemological ideologies that ushered in urban productivity decline in the African space economy. As an entry point to address this urban development challenge in new regionalism, this article makes a case for neo-mercantilism as an alternative development ideology for Africa. [ABSTRACT FROM AUTHOR]

Copyright of Regional Studies is the property of Routledge and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Regional Studies is the property of Routledge and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Regional Studies is the property of Routledge and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Regional Studies is the property of Routledge and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Although the role of organized business in regional economic integration is well documented, extant scholarship portrays them as mere legitimizers and partners of regional policy. This neat categorization fails to capture the complicated, ‘multiscalarity’ of business and overall civil society's role in regional governance. Drawing insights from social constructivism and empirical evidence from fieldwork conducted in 2012 and 2013 on the interactions between the Economic Community of West African States (ECOWAS) and region-wide business associations and advocacy networks since the early 1990s, this article shows that although African business groups are relatively new actors at the regional stage, their impact on regional governance is substantial. This is not only in terms of getting governments to adopt particular policies or the ability to hold the state accountable, as functional institutionalists might argue, but also in terms of the regional socialization effects, namely the willingness and ability to frame issues that influence the choices of political decision-makers. Business regional governance roles also straddle competing conventional roles, and sometimes counter the neoliberal vision of regional integration, even among those that owe their emergence to regional organizations. The study also challenges the pervasive view of business actors (especially in Africa) as simply profit-seekers by highlighting the ways business actors have deployed and acted on principled beliefs about regional identity collectively or individually to forge denser and relatively effective policy coalitions that signal unfolding changes in the direction of regional policy in Africa. [ABSTRACT FROM PUBLISHER]

Since the adhesion of Spain to the European Union, Andalusia has been catalogued as an Objective 1 region because its GDP was inferior to 75% of the community average. In this way, funds have contributed to the generation of regional GDP and reduced unemployment during these years, causing that levels exceed 75% with respect to average GDP per capita in the European Union. So, Andalusia will not be considered as one of the Objective 1 priority areas for European Regional Policy. With the changes in the region and the threat of an expected withdrawal of funds, this article proposes an analysis to explain the meaning of this withdrawal of European Funds in Andalusia in the period 2014–2020. With this aim, we develop a Dynamic Applied General Equilibrium Model that will assess the effects of the loss of this funding on the main regional economic indicators and under different simulation scenarios. The model will analyse the effect of economic policy actions on the economy, satisfying the requirements of welfare and technological feasibility when given some restrictions on available resources. [ABSTRACT FROM AUTHOR]

Copyright of Regional Studies is the property of Routledge and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The article gives a brief historical overview of the changing perspectives of Norwegian regional research and regional policy related to the concept of regional restructuring. It offers an interpretation of the concept ‘path dependence’ and newer, related concepts such as ‘renewal’, ‘reorientation’, and ‘resilience’, which gradually have replaced the traditional regional restructuring approach associated with Doreen Massey. The article discusses how, in a series of case studies, history matters in the following ways: the significance that events or decisions in the past have for further development; institutions and regulations that cause inertia; and entrepreneurs and organizations that recombine accumulated knowledge and reutilize local resources, infrastructure, or cultural heritage in innovative processes. The studies are informed by evolutionary as well as by relational and institutional strands of economic geography. They are mainly qualitative case studies of Norwegian municipalities and regions dominated by certain industries vulnerable to economic decline. Further, they demonstrate a broad set of strategies of industrial renewal and reorientation. Bottom-up strategies and local flexibility with regard to modes of organizing restructuring are recommended. [ABSTRACT FROM AUTHOR]

Copyright of Regional Studies is the property of Routledge and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

There is a need for continuous reforms in India's infrastructure, innovation culture and dynamic leadership to sustain the growth of innovation. The purpose of this empirical study is to gain a better understanding of India's innovation systems. A comprehensive analysis has been done on two levels: on both a national level and a regional level. First, the section about the national level explores and explains the challenges and opportunities of India's innovation capacity using a semi-structured questionnaire of the practitioners. Second, the section about the regional level discusses the clusters formed within India through a mapping of industrial firms, educational/research institutions and innovation parks. Both an empirical activity framework and a functional-based conceptual framework have been presented to highlight the themes of “building-upgrading-promoting” and “democracy-culture-infrastructure”. Finally, this paper makes a theoretical contribution by providing a conceptual framework for studying India's innovation system and giving recommendations to policy makers about sustaining the innovation. [ABSTRACT FROM AUTHOR]

In the 1980s, public bodies became aware of the importance of small- and medium-sized enterprises (SMEs) in regional economic development. In order to stimulate their innovativeness and to overcome their inward limits, public policies set up innovation agencies all over European countries. Criticisms arose after 10 years of existence because of their low usefulness. This article aims to develop a better understanding of the relationship between SMEs and innovation agencies. It presents the implementation of a management scheme which experimented with new solutions in French SMEs, to overcome previous gaps. Our article seeks to enrich research exploring the links between the SME and the innovation agencies within knowledge-based clusters. It advocates new principles to improve SMEs' guidance in innovation processes and shows that they are still essential organizations to support SMEs' innovativeness, especially the structurally weak and inward-looking looking ones. [ABSTRACT FROM AUTHOR]

This article makes a contribution to the debate on regional economic development based on the increasing importance of the knowledge-driven or creative economy. The empirical data stems from research conducted on the structure of the creative economy in Sweden, where the results point to a few areas of importance for the concentration of the creative class. The results are compared with Canadian studies that reflect similar economic development patterns. The article seeks to contribute to the understanding of these results in a peripheral economic geographical context. The article argues for caution in applying the same kind of policy recommendations for urban and peripheral regions based on the analysis of the creative class. [ABSTRACT FROM AUTHOR]

The repeated reterritorialisation of economic development policy has resulted in a congested institutional environment characterised by a confused, and confusing, nested spatial hierarchy of interventions. Nevertheless, advocacy for perpetual institutional manoeuvring has proceeded largely unchecked leaving important questions unanswered regarding both the desirability of adding to/modifying the institutional landscape of cities and also the viability of such policies in light of existing attachments to long-established administrative geographies. In calling for further research, this paper conducts a preliminary investigation of the mutation of sub-city Urban Regeneration Companies (URCs) into city-regional City Development Companies (CDCs) and suggests the expansive critical realist epistemology as a potentially worthwhile methodological starting-point. [ABSTRACT FROM AUTHOR]

The article examines the rapid expansion of the service sector in China in both the regional and national levels. It mentions that the author conducted a study which identifies the regional variations that contributed to the growth and development in the industry as well as explore other contributing factors related to it. It provides information on structural shifts that happened in the regional economy of China and relates that inequality in the contribution of services to its gross domestic product (GDP) did not have the same path being followed as that of employment in services.

Lee Y.-S. Balanced development in globalizing regional development? Unpacking the new regional policy of South Korea, Regional Studies. This paper critically examines South Korea's adoption of 'new regionalism' as a basis for its regional policy initiatives. It is argued that this new regional policy poses dualism between endogenism and exogenism, and as such fails to reformulate and re-articulate theoretical and policy views on the globalization of regional development. Instead of dualism, a concept of 'multi-scalar governance' has been developed as an analytical lens through which regional development in the era of globalization can be analysed... [ABSTRACT FROM AUTHOR]

As a sub-Saharan country, Mauritius has been branded a success story in terms of its sustained economic growth performance, with major improvements in the living standards of its population at large over the past few decades. This paper has the objectives of revisiting this success story, essentially by analyzing the numerous policies that have been adopted, to provide insights into Africa's policy options. The Mauritian case study demonstrates that no single dose of economic reforms may generate growth dividends to perpetuity, especially when the current economic environment differs from initial conditions. [ABSTRACT FROM AUTHOR]

A new model of knowledge-based regional economic development was invented in Boston during the 1930s and subsequently transferred to northern California where it also had independent roots. Drawing upon academic, business and government resources and configuring them in new formats created new firms and new industries. Nevertheless, the two regions often appear dissimilar when they are contrasted synchronically, due to the different stages they may be in at the time. Thus, some observers argue that Boston and Silicon Valley are distinctive watersheds, irrelevant to follow-on regions. However, if the development process of these two prototypical high-tech regions are analysed diachronically, a trajectory with similar phases of development may be identified. We suggest that these two regions exemplify a general model for high-tech regional growth and renewal. [ABSTRACT FROM AUTHOR]

The main focus of this study is to make recommendations on policy for the development of internationally competitive 'niche' clusters in small developing countries. Also discussed are the relevant strategies for the effective implementation of those policies. The study begins with a discussion of the key concept of the 'socio-psychological construct'. This construct is based on an interpretation of culture that sees all economic activity within a society as unique to that society and its productive pursuits. This unique culture is later transferred over time into competitive industrial activity. The study adopts the concept of a 'small developing countries model,' which is based on the socio-psychological construct. The small developing countries model is used to highlight the historical difference in the processes that were involved in the establishment of clusters in small developing countries as compared with those advanced by Michael E. Porter, for developed nations, in his book The Competitive Advantage of Nations (Porter, 1990). The point of departure of the small developing countries model from that advanced by Porter is a presumption that small developing countries are, and have been, historically open economic systems. This is in contrast to Michael E. Porter's findings that developed country clusters were formed in geographic isolation over historically long periods. The study reviews these concepts as they were applied to Clusters in Trinidad and Tobago and then formulates the policies and strategies relevant to all small developing countries. [ABSTRACT FROM AUTHOR]

Beenstock M. and Felsenstein D. Regional heterogeneity, conditional convergence and regional inequality, Regional Studies. The paper stresses the importance of accounting for regional heterogeneity in the dynamic analysis of regional economic disparities. Studies of regional growth mainly presume that regions are homogeneous in their socio-demographic composition. It is argued that the analysis of regional convergence needs to be tested conditionally, i.e. conditional upon the socio-demographic structure of the workers in the various regions. To this end, various measures of conditional regional earnings inequality are estimated using Israeli regional data for the period 1991-2002. The results show that about half of regional earnings inequality may be accounted for by the conditioning variables. Conditioning also makes a large difference to estimates of Gini and beta-convergence... [ABSTRACT FROM AUTHOR]

The paper examines the macroeconomic structure of SAARC countries, i.e. Bangladesh, India, Nepal, Pakistan and Sri Lanka. It also explores the possibility of trade expansion among these countries by examining the macro-economic and regional trade link models based on time series data of 28 years. The study finds that there are inter-country differences in production and consumption patterns, investment behaviour, tax and non-tax structures in the SAARC countries. Hence, there is considerable scope for trade expansion among the SAARC countries. The study also confirms that aggregate regional consumption and regional GNP increase significantly with the increase of aggregate regional trade, and the consumption and income elasticities are 1.70 and 1.61 respectively. The study also exhibits that the GNP of Bangladesh, Nepal, Pakistan and Sri Lanka, with limited exceptions, are significantly increased with the increase of their exports to the region. So these countries would definitely benefit from the regional trade expansion. The same may be true for India if the smuggled trade is prevented or reduced, and true economic factors, keeping aside political conflicts, dominate for regional trade policy. [ABSTRACT FROM AUTHOR]

Copyright of Spatial Economic Analysis is the property of Routledge and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This study evaluates regional convergence and efficiency among 13 regions in Korea over the period 1985-2002 using stochastic frontier production model which allows for regional inefficiency and heterogeneity. Evidence is found in favour of regional convergence in Korea, with a lower rate of convergence of around 2% a year, because we find that inefficiency in production does exist in regional economy. The results also indicate that the improvement of education and reforms of local government policies have contributed to an increased level of efficiency. Since the average estimates of technical efficiency have increased over time, the results show that regional economy has brought the significant improvement in efficiency. [ABSTRACT FROM AUTHOR]

Lagendijk A. (2007) The accident of the region: a strategic relational perspective on the construction of the region's significance, Regional Studies 41, 1193-1207. In both academic debate and popular perceptions the region is presented as an important entity in economic, political, social, and spatial processes. This has resulted in a strong performative role of the region not only in mainstream debates across these domains, but also in a wide range of political and policy processes and practices. Recent critiques have challenged certain key features of the dominant perception of the region, notably its portrayal of the region as something bounded and fixed. But what triggered the emphasis on the region in the first place? To what extent can the significance of the region be attributed to broader political, economic, and social shifts? To what extent does it present a more accidental outcome of processes and actions that, in combination, happened to put the region centre stage? To address/explore these questions, the paper will adopt the Strategic Relation Approach (SRA) launched by Jessop and further developed by Hay and Sum.,, [ABSTRACT FROM AUTHOR]

This paper presents the results of a study on the functioning of regional innovation networks (RINs) in the Netherlands. RINs are designed to achieve sustainable and socially acceptable regional economic development. By focusing on inter-human processes, the study aimed to gain more and deeper insights into the nature, the workings, the potential and the limitations of RINs in processes of innovation. An important insight from the study concerns the role of governments in RINs. Although the intention of the central government was to experiment with a fully bottom-up process, all RINs were eager to involve the government at different levels, at different times and for different purposes. [ABSTRACT FROM AUTHOR]

The article discusses the multilateral economic cooperation with a view to future economic integration in the Post-Soviet space. It notes that all of the post-Soviet states belong to the group of economies with low or moderate per capita income levels. The primary form of economic integration in the post-Soviet space is trade with important share of intraregional exports in a given region or block's aggregate export flows. It stated that Georgia, Ukraine, Azerbaijan and Moldova (GUAM) is the most artificial economic entities in the post-Soviet space. Moreover, the post-Soviet states aims to be part of global trade and investment flows and acquire advanced technologies from developed centers of the international economy.

"Clusters" have become central to European regional economic development policy. However, concerns have emerged over the content and quality of delivery of cluster-based initiatives. Here we review the implementation of English cluster policy, with a focus on medical technologies in the West Midlands region of the UK. Using a policy streams framework, we seek rapprochement between counter arguments that implementation difficulties are the inevitable results of applying a "fuzzy" concept or are avoidable outcomes of organizational deficiencies. We illustrate how both can contribute to failure at different policy stages and suggest that before adopting a cluster approach more consideration should be given to the institutional capacity required for implementation. [ABSTRACT FROM AUTHOR]

Copyright of Regional Studies is the property of Routledge and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The aim of this article is to analyse the nexus of integration and disintegration processes in the post-Soviet space. On the one hand it considers 'formal' regionalism projects and the reasons for their inefficiency, and explores the real impetus behind the repeated attempts at top-down regional integration by post-Soviet elites. On the other hand, it analyses the bottom-up regionalisation of the post-Soviet space through the investment activity of Russian corporations, and demonstrates possible effects of this process for institutional development. [ABSTRACT FROM AUTHOR]

The article presents a list of journals published between September and December 2005 of Planning Literature Information Service. The urban and regional spatial development and Policy, include the "Urban Soundscapes: Experience and Knowledge," by Manon Raimbault. The local and regional economic development, include "Port Geography of UK International Trade," by Henry G. Overman. The theory and history, include, "Complexity Science, Complex System and Landuse Research," by Thomas W. Crawford.

Copyright of Regional Studies is the property of Routledge and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Regional Studies is the property of Routledge and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Regional Studies is the property of Routledge and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Regional Studies is the property of Routledge and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Regional Studies is the property of Routledge and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Regional Studies is the property of Routledge and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Regional Studies is the property of Routledge and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The paper draws on qualitative empirical evidence from studies of regeneration in North-East England, and seeks to link housing market renewal to wider regeneration issues at regional and neighbourhood levels. It suggests that the discourse on, and justification of, housing market renewal has shifted from a specific concern with low housing demand and abandonment to a more generalised modernisation agenda seeking the restructuring of low-income neighbourhoods in terms not only of housing quality but also of tenure and population. This modernisation discourse is strongly linked to a regional economic regeneration agenda. It is argued that despite claims for the holistic nature of market renewal policies, it seems unlikely that these will improve the economic circumstances of existing residents as opposed to serving regional economic development objectives. Moreover, the more sweeping change implied by the modernisation agenda may reinforce the tension at neighbourhood level between community-led neighbourhood renewal and the restructuring of tenure and population through market renewal. [ABSTRACT FROM AUTHOR]

Copyright of Regional Studies is the property of Routledge and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Regional Studies is the property of Routledge and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Regional Studies is the property of Routledge and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Regional Studies is the property of Routledge and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Comments on the catalytic effect of the European Union in the spread of regionalism in Asia. Development of institutional responses to complement the governance capabilities of the nation states; Role of the multiplicity of institutional forms on the geographic and demographic variability characteristic of regional groupings; Appeal of multilateralism to countries concerned with national security.

In recent years, new regionally based strategy-building processes emerged at the interface between public policy and the social coordination of collective action. Foresight as a governance process to stimulate regional innovation and strengthen the regional economic system against global competition became a popular concept. Based on the experiences of a strategy-building process in the Italian autonomous province of Trento, it is the objective of this paper to sketch recent theoretical and political developments regarding multi-actor and multi-level governance and policy concepts at the regional level. [ABSTRACT FROM AUTHOR]

In recent years regional policy has become more and more concerned with the improvement of the innovation capacity and performance of firms. Many regional development strategies have as key elements the support of their regional innovation systems and innovative clusters of firms. It has been recognized that increasing the technological level, the value added and the competitiveness of a regional economy relies to a large extent on the innovation capacity of regional firms and clusters. Regional development is an important policy issue also for the European Union (EU). The EU Structural Funds aim at supporting regions lagging behind in their development or facing structural problems. In this paper how the European Regional Development Fund (ERDF) affects innovation in the Austrian Objective 1 region Burgenland is analysed. In this case study data from an innovation survey conducted in the context of the recent mid-term evaluation are used in order to assess the innovation-related effects of the ERDF. The analysis leads to the conclusion that the ERDF does not target the problems and needs of regional firms regarding innovation in a satisfactory way which also hampers the successful restructuring of the regional economy. [ABSTRACT FROM AUTHOR]