Spatial concentration of Research and Innovation funding: How do excellence and cohesion logics differ?

Anabela Santos

No 2026-081, Working Papers TIMES² from ULB -- Universite Libre de Bruxelles

Abstract: This paper examines the spatial distribution of European Union research and innovation (R&I) funding, comparing excellence-oriented (Horizon 2020) and cohesion-oriented (Cohesion Policy) instruments, and analysing the role of governance level within Cohesion Policy. Using NUTS3-level data from the 2014-2020 programing period and spatial econometric models, we find that Horizon 2020 funding is concentrated in regions with high patent intensity, GDP per capita, and knowledge-intensive services, reinforcing cumulative advantage and contributing predominantly to within-country inequalities in access to funding. Cohesion R&I funding exhibits stronger between-country redistribution and integrates socio-economic vulnerability, though its internal allocation varies with governance: national management fosters clustering and positive spillovers, while regional management spreads resources more widely but intensifies intra-national competition. The results underscore the trade-offs inherent in EU R&I funding; policies that prioritise excellence, redistribution, or spatial coordination cannot maximise all objectives simultaneously, with governance choices mediating the balance between concentration, spillovers, and territorial equity.

Keywords: R&I funding; Cohesion policy; Horizon 2020; Governance (search for similar items in EconPapers)
Pages: 31 p.
Date: 2026-02
New Economics Papers: this item is included in nep-com, nep-eur, nep-geo, nep-ino, nep-sbm and nep-uep
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