degrees of innovation promotion by the EU from one region to another. Since regional-policy strategies should have been …-financing policy of innovation projects changed for the 2007-2013 program period compared with the 2000-2006 period. According to our …

regional projects eligible for EU support. In some regions, however, the EU contribution has reached 85% of total costs. This … regions with lower GDP per capita. Furthermore, while the share of service-sector employees in a region is negatively related …

-national policy instruments were created to correct them. To explain these evolutions, we develop a two-region, two-sector model with … gap in income per capita, the backward region needs to receive over 8% of its own GDP in structural funds, while the … actual disbursements were around 4%. We also find that maximizing innovation in the backward region conflicts in the short …

similar but unsubsidized projects, thereby making it possible to explicitly test an important assumption that is often …

connectivity—resulting in low trade integration and regional connectivity within the region and with Southeast and East Asia …