R&I funding across regions and sectors of performance: Evidence for 2021-2025

Anabela Santos and Andrea Conte

No 2026-083, Working Papers TIMES² from ULB -- Universite Libre de Bruxelles

Abstract: Using a newly compiled dataset at NUTS2 level, this working paper provides a mid-term analysis ofthe territorial and sectoral distribution of the two main EU R&I funding instruments, HorizonEurope and Cohesion Policy, over the first five years of implementation of the 2021-2027programming period. The two instruments follow distinct but complementary logics: excellencebasedand territorial convergence, respectively. The findings show substantial territorial differencesin the importance of EU R&I funding. In many Central, Eastern and Southern European regions,the combined contribution of Cohesion Policy and Horizon Europe exceeds 20% of total R&Dexpenditure, making EU funding a major source of R&D financing, particularly in less developedand innovative regions. Horizon Europe is highly concentrated among innovation-leading regions,while less innovative regions rely more on R&I Cohesion Policy funding. The sectoral analysis showsthat Horizon Europe is predominantly oriented towards the higher education sector, whereasCohesion Policy has a stronger contribution to the business sector, which becomes relatively moreimportant as regional innovation performance declines. The differentiated territorial and sectoralroles of Horizon Europe and Cohesion Policy observed in previous programming periods tend topersist during the first five years of the current EU funding architecture, highlighting the importanceof maintaining their complementary roles while strengthening links between competitive and placebasedR&I support.

Keywords: R&I funding; Horizon Europe; Cohesion Policy; EU regions (search for similar items in EconPapers)
Pages: 25 p.
Date: 2026-09
New Economics Papers: this item is included in nep-eec and nep-sbm
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