Domain 4 – Regional Cohesion

June 26, 2003

Domain Specification
Domain Background
Domain Focus
Domain Users
User Objectives, Outputs and Critical Success Factors
eEurope Relevance

See Regional Cohesion Good Practice examples in Beep Knowledge Base

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Domain Specification

Domain Background

ICT is a network-based technology. This means that when critical mass is attained, revenues will grow in an exponential manner, giving early movers a substantial and growing advantage. It is easier to be an early mover and attain critical mass in regions that have:

Large populations (both people and enterprises)
Higher incomes, as willingness to pay to join a network is higher
Large numbers of ICT proficient enterprises and households (which lowers the costs and risks of implementation of ICT and e-commerce)

Regions having these characteristics will typically reach critical mass before regions that do not, although other types of regions can become early movers if they act quickly and in the right way. Without such action, however, existing differentials in regional income per inhabitant can increase because the growth processes involved are cumulative. Reaching take-off and critical mass are thus questions of prime concern, and regional agencies or governments have a particularly important role in this, especially where the locality is not in a core region, because of their close knowledge of the regional economy and its actors.

There are two general strategies for developing ICT-led economic growth at regional level:

The promotion of all aspects of the Information Society at regional level, with the aim of creating spill over and spin-off effects which are dynamic and cumulative. (This is exemplified by the Danish case of Næstved).
Carefully focused cluster-analysis at regional level, to identify the potentially strong partners in a regionally based network. This involves the careful and planned construction of specialised regional networks (or supply chains) based upon locally strong clusters. (This is exemplified by the Danish case of Kjellerup).

Domain Focus

Although the achievement of regional cohesion across Europe requires both in situ regional development policies coupled with balanced inter-regional policies at the macro, this domain focuses only upon the former. The scope and actors involved in the latter make it impossible to combine the two within the resources and time scale of BEEP.

In situ development (both at a local and a regional level where localities interact) generally implies:

Economic objectives, e.g. creating the conditions for long-term economic development and the increase in the number and success of enterprises. This includes upgrading and promoting innovation and entrepreneurship, the quality of the labour force and physical and ICT infrastructures at a local/regional level, exploitation of indigenous resources, etc.
Environmental objectives, including both natural and man made environments, e.g. sensitive land use planning, lack of pollution, congestion, improved quality of life, amenity values, etc
Social objectives, e.g. the maintenance and development of the social, cultural and indigenous values of the region

Mechanisms and tools necessary at the regional level to support, enhance and implement two or more of these main objectives include:

Regional planning framework, including both strategic and operational levels
The public sector as valoriser and leader, including local/regional e-government and role of intermediary organisations, focusing on the provision of services to enterprises and citizens
Providing advice, finance and institutional infrastructures
Promoting co-operation and public-private partnerships
Promoting clusters and networks
Local/regional marketing, promotion and image
Education, training and R&D

Domain Users

Two user types will be focused upon:

RDAs (Regional Development Agencies): the EURADA definition of an RDA is ‘an operational structure that identifies overall development problems, chooses a range of opportunities or methodologies for their solution and promotes projects which can maximise the solutions to the problems.’ RDAs include local, municipal and regional government authorities/administrations, which have a direct or indirect regional development responsibility.
NGOs: interest groups, associations and social-cultural initiatives, which actively participate in regional development initiatives.

Stakeholders (i.e. other users with interest in using the database even though it is not explicitly designed for them) could include policy makers in central government, European agencies, social partners, employment agencies, finance and venture capital institutions, chambers of commerce, trade and business support agencies, enterprises (seeking relocation, investment, new markets, etc), consultants, researchers, ICT industry, the IST Programme and its projects, the European Commission, etc.

User Objectives, Outputs and Critical Success Factors

Objectives	Outputs	CSFs
Increase the number and success of enterprises (economic objective 1)	Strong regional growth Net growth in regional jobs High regional income	Effective regional economic planning framework, both strategic and operational levels Active role of public sector as valoriser and leader Local/regional e-government Effective enterprise support, e.g. advice, finance facilities (such as business incubators), etc Co-operation and public-private-third sector partnerships Promotion of value chains, clusters and networks Strong local/regional marketing, promotion and image Effective vocational education and training Strong research and development base
Upgrade regional competitiveness, trading and globalisation (economic objective 2)	High level of regional entrepreneurship High level of regional innovation Strong regional supply and delivery chains Strong regional competitiveness and market development	Effective regional economic planning framework, both strategic and operational levels Active role of public sector as valoriser and leader Local/regional e-government Effective enterprise support, e.g. advice, finance facilities (such as business incubators), etc. Active co-operation and public-private-third sector partnerships Promotion of value chains, clusters and networks Strong local/regional marketing, promotion and image Effective vocational education and training Strong research and development base
Improve the quality of regional human resources (economic objective 3)	Well developed regional labour skills and competencies Good regional labour supply and flexibility High level of regional labour adaptability	Effective vocational education and training Good basic primary, secondary and tertiary education Specialised higher education sector Strong research and development base Strong and cooperative social partners Well developed work-life balance and work-family policies Effective labour market institutions and instruments
Improve the quality of regional institutional resources (economic objective 4)	Strong public-private-third sector institutions and institutional co-operation Strong regulatory, legal and financial structures	Active role of public sector as valoriser and leader Local/regional e-government Active co-operation and public-private-third sector partnerships Regulatory, legal and financial structures at local/regional level able to adapt to local conditions and dynamic change
Upgrade regional physical and ICT infrastructures (economic objective 5)	Reliable and efficient regional transport Well developed regional ICT infrastructures and services High regional quality of land, buildings and facilities/utilities and access to them	Active role of public sector as valoriser and leader Local/regional e-government Active co-operation and public-private-third sector partnerships Regulatory, legal and financial structures at local/regional level able to adapt to local conditions and dynamic change Financial joint ventures between mix of private, public and third sector partners Effective regulatory balance between market and public good goals
Upgrade the quality of the physical environment (environmental objective 1)	Good regional environmental planning and monitoring Low regional pollution levels Low regional waste and good waste handling and disposal High level of regional energy use and efficiency	Active role of public sector as valoriser and leader Local/regional e-government Active co-operation and public-private-third sector partnerships Financial joint ventures between mix of private, public and third sector partners Effective regulatory balance between market and public good goals Access to high level scientific and technical expertise
Upgrade the quality of the man-made environment (environmental objective 2)	Low regional traffic congestion Good regional land use planning High regional amenity values	Effective regional transport and land-use planning framework, both strategic and operational levels Active role of public sector as valoriser and leader Local/regional e-government Active co-operation and public-private-third sector partnerships Financial joint ventures between mix of private, public and third sector partners Effective regulatory balance between market and public good goals Access to high level scientific and technical expertise
Improve social and community support (social objective 1)	Good regional support to family and community life Well developed regional social support systems	Effective social and community care planning and delivery framework, both strategic and operational levels Active role of public sector as valoriser and leader Local/regional e-government Active role of pressure and voluntary associations representing social and community groups Active co-operation and public-private-third sector partnerships Financial joint ventures between mix of private, public and third sector partners
Improve community and social activities and awareness (social objective 2)	High neighbourhood and community identity in the region High regional membership and activities of voluntary and non-profit associations and networks	Effective voice for neighbourhood, community, voluntary and non-profit associations in local planning and decision making Delegated powers and decision making to neighbourhood, community, voluntary and non-profit associations in areas of direct relevance to them Local/regional e-government High level of local e-democracy Active co-operation and public-private-third sector partnerships Financial joint ventures between mix of private, public and third sector partners
Improve cultural integrity and development potential (social objective 3)	Protected and dynamic regional cultural and historical heritage Strong regional languages and dialects Strong regional ethnic and/or cultural development and identity	Effective voice for local and regional ethnic, cultural and language groups and interests in local planning and decision making Delegated powers and decision making to local and regional ethnic, cultural and language groups and interests in areas of direct relevance to them Local/regional e-government High level of local e-democracy Active co-operation and public-private-third sector partnerships Financial joint ventures between mix of private, public and third sector partners

eEurope Relevance

Key objective	Action lines	Actions	BEEP domain coverage
A cheaper, faster and secure Internet	Secure networks and smart cards	Action 2 - human interface, usability for disabled users and support for multiple languages	Indirect coverage by Regional Cohesion domain
Investing in people and skills	Participation for all in the knowledge-based economy	All actions	Direct coverage by Regional Cohesion domain
Stimulate the use of the Internet	Digital content for global networks	All actions	Indirect coverage by Regional Cohesion domain