Sustainable Growth and Regional Development Regional Policy contributing to sustainable growth in Europe 2020, Brussels, 18 February 2011 Kevin Morgan School of City and Regional Planning Cardiff University

Sustainable growth - a global concept  The idea of sustainable development is not new  Globally, it was mainstreamed in 2 ways: Brundtland Report (1987) Earth Summit (1992)  Rio 20+ in 2012 aims to give new momentum to the concept for the future as well as reflecting on the past

Sustainable growth in the EU  In the EU the 1993 White Paper on Growth called for “a new sustainable development model”  The traditional model had 2 fatal flaws: the “underuse” of labour resources the “overuse” of natural resources  Clean technology was the key  Need to decouple growth from “overuse” of natural resources

Sustainable growth/open innovation Sustainable growth needs new models of innovation Old and new models of innovation co-exist  Linear model (science push, silo-based)  Open model (outsourcing R&D/network-based) Open innovation model can help EU to overcome its key weakness – commercializing its world class research base Innovation Union policies can help – by fostering better partnerships throughout the innovation cycle

Sustainable growth/regional policy Regional policy has helped EU regions to cope with multiple challenges, especially:  The infrastructure deficit  The employment deficit  The innovation deficit Europe 2020 could help the regions to address the sustainability deficit Eco-innovation/smart specialisation for all regions “Europe begins in its regions and cities” (Committee of the Regions)

Sustainable growth/regional level The regional level is best placed to know its problems and its potential for sustainable growth  innovation and green growth (new partnerships between research, business and government)  public sector (needs to be less risk-averse)  social innovation (needs to harness the skills of the social business sector to engage less favoured areas and people, especially young people)  resource efficiency (water is a priority ecosystem service)

Sustainable growth/national level Regional development is a multi-level challenge Subsidiarity means sharing responsibility not shedding it (esp during a green transition) Member state governments can make a difference in many ways, especially:  Promoting policy synergies (joined-up policy)  Creating clear and demanding regulations  Brokering accessible financial instruments  Deploying the power of purchase (green procurement)  Fostering open innovation/social innovation

Sustainable growth/the EU level The EU level can best add value by promoting the key priorities of Europe smart, sustainable and inclusive growth EU can add value by doing what member states cannot do – help regions to engage in knowledge sharing networks beyond national borders Promoting unity-in diversity is the key task:  unity helps us to get ahead together  diversity helps us to become more resilient since homogeneity breeds fragility

Key conclusions Sustainable growth is more an opportunity than a threat to less favoured regions (LFRs) The biggest threat lies in thinking the status quo is a viable option for the future Regional policy can help LFRs to become smarter, more sustainable and more inclusive But in the new era we need to remember some old truths:  there is no single measure of best practice (so no one best pathway for regions)  regional development needs more sustainable metrics (GDP per capita does not capture quality of life)