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Territorial Effects of EU Cohesion Policy Supporting Entrepreneurship: Findings from the Czech Republic

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Part of the Advances in Spatial Science book series (ADVSPATIAL)

Abstract

European cohesion policy aims to mitigate regional disparities and foster regions that are economically lagging behind. One way to encourage economic activities in such under-developed regions is through supporting entrepreneurship. The study explores the territorial effects of public subsidies aimed at promoting the competitiveness of Czech enterprises. The analysis evaluates the impact of the largest Czech entrepreneurship policy – Operational Programme Enterprise and Innovation (OPEI) and its regional firm-level effects. Funded by the European Regional and Development Fund, part of EU cohesion policy, it ran from 2007 to 2013. The research exploits a microeconomic dataset of 3614 supported and 6622 non-supported companies, and empirically assesses whether the outcomes of the policy differed territorially across the Czech NUTS 3 regions 2 years after the end of the intervention. The method used is the counterfactual impact evaluation. For that purpose, we operationalise firm-level competitiveness by financial performance indicators. The findings show that the effects of EU cohesion policy differed across the Czech NUTS 3 regions. The confirmed cross-regional effects of public interventions have implications for the future adjustments of cohesion policy. Accordingly, we argue that adapting calls to the specificities of the different locations (NUTS 3 regions) would enhance the response to the local needs and challenges faced by local authorities and improve the place-based character of EU cohesion policy.

Keywords

  • Territorial effects
  • Public grants
  • Entrepreneurship policy
  • EU cohesion policy
  • Counterfactual impact evaluation

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Notes

  1. 1.

    According to the European Commission (2019a; 2019b) the budget allocated to regional policy constituted to 35.7% of the total budget, i.e. 347 bn EUR for the period 2007–2013 and 351 bn EUR for the period 2014–2020.

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Dvouletý, O., Blažková, I., Potluka, O. (2020). Territorial Effects of EU Cohesion Policy Supporting Entrepreneurship: Findings from the Czech Republic. In: Medeiros, E. (eds) Territorial Impact Assessment . Advances in Spatial Science. Springer, Cham. https://doi.org/10.1007/978-3-030-54502-4_11

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