Regions in Industrial Transition

Policies for People and Places

image of Regions in Industrial Transition

This report offers guidance on how to manage industrial transition and is directed towards all policymakers seeking to improve the “what” and “how” of policies that promote industrial change. It identifies how regions in industrial transition can become more competitive and more resilient in the context of major shifts brought about by globalisation, decarbonisation and ongoing technological change. It takes stock of discussions emanating from a series of peer-learning workshops jointly organised in 2018 by the European Commission and the OECD. The report presents a number of implementation tools that policymakers have at their disposal to activate regional innovation potential to help tackle these challenges and the often accompanying ones such as an unsuitable skills base, unemployment due to deindustrialisation, and limited investment opportunities.

Bringing together economic analysis and regional and country practice from the participating regions and countries on the topics of the future of work, entrepreneurship, innovation, transitioning to a climate-neutral economy and inclusive growth, the report identifies cross-cutting lessons to help policy-makers better design the next generation of smart specialisation and regional innovation strategies.


Promoting inclusive growth

Promoting and sustaining inclusive growth is a pre-condition for a fair and inclusive industrial transition. This chapter assesses how adopting an integrated territorial approach to economic development and enhancing individual well-being and labour market inclusion can help regions in industrial transition overcome obstacles to inclusive growth. The chapter points out that less advantaged areas – those that might have been prosperous prior to industrial decline – must solidify ties with those that are now growing. It also highlights that vulnerable groups need to better integrate into the labour market. The chapter further explores how improved urban-rural linkages, better (digital) connectivity, dedicated support for vulnerable groups in transition and stronger coherence in promoting inclusive growth policies can support regions in industrial transition mitigate the effects of slow growth and high unemployment.


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