REGIONS IN INDUSTRIAL TRANSITION : policies for people and places.

Foreword
Acknowledgements
Executive summary
	Key messages
	Looking ahead
1 Boosting innovation-led growth in regions in industrial transition
	Introduction
	Setting the scene: Current and future challenges for regions in industrial transition
		Regions in industrial transition have an important range of assets to build on, but face dangers of lock-in
		Industrial decline can lead to growing inequalities
		Industrial transition is not a new phenomenon
		The past impact of industrial transition was not spread evenly across space
		Current long-term megatrends are transforming the industrial base of different types of regions
		Regions undergoing an industrial transition are confronted with a range of very specific (policy) challenges
	Strategies for managing industrial transition
		Preparing for the future of work
		Broadening and diffusing innovation
		Innovative entrepreneurship for new industrial path development
		Transition towards a climate-neutral economy
		Promoting inclusive growth during industrial transition
	What makes industrial transition successful? Crosscutting lessons and key considerations
		A strong regional and place-based dimension is key to support economic growth and well-being
			There are several pathways to industrial transition
			Regional preconditions determine the scope for industrial modernisation
			Choosing the right strategy also depends on legacies and industrial profiles
		Regions in industrial transition face very specific governance challenges that need to be addressed across policy themes
			Understanding the evolution of current policy mixes as a precondition to make useful predictions
			Getting the current policy mix right
			Reflecting on goals and rationales
			Allowing for policy experimentation and learning
			Balancing short-term actions and political interests with long-term strategic objectives
			Providing regional leadership
			Managing financial considerations
			Strengthening (multi-level) governance processes
			Monitoring and evaluation of the policy mix
	References
		Annex 1.A. Toolkit to assess policy responses to industrial transition
2 Preparing for the jobs of the future
	Changing skills and jobs profiles affect regions in industrial transition
		Automation will critically affect local labour markets and regions in industrial transition in specific ways
		Industrial transition may come with increased job polarisation
		Non-standard work might become increasingly prevalent in some regions in industrial transition
	What challenges and opportunities do regions in industrial transition face in preparing for the future of work?
		Getting skills development right drives successful transition
		Regions in industrial transition need to avoid falling into a “low-skills equilibrium”
		SMEs often lack soft skills for innovation
		Upgrading skills is critical but how can it be done?
	What can policy do (better) to support a successful transition into the future of work?
		Supplying the right skills for new and emerging activities
			Better anticipating skills needs supports industrial transition
			Engaging local employers in regional skills development initiatives
		Supporting workers in transition
			Supporting vulnerable workers transition to new jobs
			Engaging firms in training and education
			Fostering the integration of under-represented and disadvantaged groups
		Investing in new and emerging sources of growth and employment
			Using technology extension services to improve innovation outcomes
			Making better use of skills in the workplace
			Encouraging knowledge exchange and co-operation
		Creating adequate co-ordination and financing mechanisms
			Implementing effective multi-stakeholder partnerships
			Ensuring adequate and sustainable financing
	Key considerations and conclusions
		Engaging a broad range of local stakeholders in skills dialogue is important
		Education and skills systems should be more inclusive
		Taking an integrated approach to local job creation requires investment
		Good governance mechanisms must be in place
	References
		Annex 2.A. Overview of policy issues and responses in preparing for the future of work
3 Broadening and diffusing innovation
	Broadening and diffusing innovation is fundamental for industrial transition
	Focusing on innovation diffusion supports “catching up” to frontier regions
	Productivity gaps are widening between frontier and other firms
	The changing nature of innovation offers new ways to foster innovation diffusion
	What challenges and opportunities do regions in industrial transition face in broadening and diffusing innovation?
		Regions in industrial transition need to build up more knowledge-intensive industrial activities
			Better integration of new technology in existing businesses supports positive transition outcomes
			Universities can be major drivers of industrial transition if their potential is well used
			Financing innovation activities remains challenging
			Barriers to investment beyond financing also remain
		Some regions in transition face large territorial disparities in innovation
		More needs to be done to create and nurture regional innovation systems
		Monitoring and evaluating innovation and innovation policies remains a large challenge
	How can policy (better) support broadening and diffusing of innovation?
		Creating and sustaining comprehensive innovation ecosystems
			Broadening innovation
				Supporting innovation-oriented public procurement
			Supporting innovation financing and overcoming barriers to investment
			Innovation monitoring and evaluation
		Strengthening knowledge transfer and innovation capabilities
			Accelerating the digital transition
			Scaling up business innovation networks
				Linking Global Value Chains to cluster policies
				Supporting open innovation and the use of open data
			Creating effective university-industry collaboration
		Ensuring innovation diffusion reaches left-behind places and firms in regions in industrial transition
			Leveraging the potential of cities and tradable sectors
			Capitalising on unique innovation strengths for future-oriented activities
	Key considerations and conclusions
		Innovation policy needs to address dynamic and left-behind places simultaneously
		Be aware of risks – Innovation creates winners and losers
		Policy alignment and multi-level governance of innovation policies are important
		Do not create paper tigers – Test and adjust regional innovation strategies
		Innovation diffusion is often embodied in “tacit” knowledge
		Organisational changes require different skills profiles for innovation
	References
		Annex 3.A. Overview of policy issues and responses in broadening and diffusing innovation
4 Promoting entrepreneurship and private sector engagement
	Innovative entrepreneurship can help renew old industrial structures
		Start-ups and scale-ups can drive job creation
		Stimulating entrepreneurship helps the emergence of new firms and boosts innovation in old firms
		Regions in industrial transition need to support innovative entrepreneurship in a range of areas
	What challenges and opportunities do regions in industrial transition face in promoting entrepreneurship and private sector engagement?
		Access to appropriate finance often poses a challenge for firms in regions in industrial transition
		Unlocking entrepreneurial potential requires more investment in entrepreneurial skills and culture
	How can policy (better) support entrepreneurship and private sector engagement?
		Several policy approaches exist to support start-up and scale-up financing
			Alternative funding instruments can support entrepreneurs in regions in industrial transition
			Governments in regions in industrial transition can help increase knowledge and awareness of the range of instruments available
		Supporting entrepreneurs with access to training, coaching, networks and partnerships
			Strengthening entrepreneurship through dedicated training
				Coaching and mentoring can boost entrepreneurship if the match “works”
				Business incubators and business accelerators provide strong support to start-ups and scale-ups
				Business support can have positive impacts on productivity and output
			Entrepreneurial networks are key sources of expertise and knowledge
			Universities can act as knowledge brokers for start-ups and SMEs
		Ensuring a friendlier regulatory environment encourages entrepreneurial activity
			Creating a level playing field
				Entrepreneurship is hard and failure should be encouraged
			Supporting entrepreneurial mindsets through entrepreneurship education
				Promoting a positive attitude to entrepreneurship through role models and ambassadors
			More needs to be done to develop monitoring and evaluation capacity
	Key considerations and conclusions
		Local decision-making is crucial
		A holistic approach to entrepreneurship is essential
		Industries, technologies and generations change
		Substitute density with networks in rural and remote areas
		Policy evaluation matters
	References
		Annex 4.A. Overview of policy issues and responses in supporting entrepreneurship and private sector development
5 Transition towards a climate-neutral economy
	The climate-neutral transition can foster sustainable investment, growth and jobs
		Ensuring a just transition is fundamental to growth and well-being
		Large differences persist across regions when it comes to energy transition
		Regions in industrial transition need to carefully balance short-term interests and long-term gains
		The structural impact: Jobs and inequalities
		The policy mix required to support the transition will vary from one industrial transition region to another
	What challenges and opportunities do regions in industrial transition face in achieving a climate-neutral economy?
		It is not always clear how to best prepare workers for industrial transition
		Growing clean industries can promote successful industrial transition
		A range of governance challenges can hamper transition co-ordination and speed
		Financing remains a challenge
	How can policy (better) support the transition to a climate-neutral economy?
		Providing labour transition strategies for a climate-neutral economy
			Support green skills and jobs through training and upskilling
			Supporting displaced workers in transition periods
			Ensuring a just transition
		Enabling businesses to turn environmental challenges into business opportunities
			Stimulating green behaviour in firms
			Encouraging innovation in environment-friendly technologies
				Supporting green public procurement
		Multi-level governance practices and strategies
			Fostering local energy transitions
			Taking a strategic approach and aligning actors
			Ensuring an enabling environment
	Key considerations and conclusions
		Balancing short-term trade-offs and long-term benefits is a must
		Resources need to be concentrated on areas with highest adjustment costs
		Regions in industrial transition need to tackle climate, growth and a just transition in a mutually reinforcing way
		The political economy aspects of the climate-neutral transition matter
	References
	Note
		Annex 5.A. Overview of policy issues and responses in the transition to a climate-neutral economy
6 Promoting inclusive growth
	Adopting an integrated territorial approach helps ensure an inclusive transition
		A policy approach focused on inclusive growth is essential to avoid further labour market polarisation in regions in industrial transition
		Territorial linkages can reduce polarisation and promote economic growth everywhere
	What challenges and opportunities do regions in industrial transition face in promoting inclusive growth?
		An inclusive transition requires more support for the labour market integration of vulnerable groups
		Industrial decline is often spatially concentrated
		Co-ordinating inclusive growth objectives and strategies is often a challenge
	How can policy (better) support inclusive growth?
		Reducing labour market polarisation as a factor for inclusiveness
			Integrating vulnerable populations into the labour market
			Strengthening regional well-being
		Overcoming regional disparities through territorial linkages
			Linking areas to capitalise on agglomeration economies
			Enhancing rural-urban linkages
			Supporting digital connectivity and rural and remote businesses
			Strengthening coherence in inclusive growth governance
			Taking a strategic approach to inclusive growth
			Social innovation as a catalyst for inclusive growth
			Vertical and horizontal co-ordination
	Key considerations and conclusions
		Industrial transition is only successful when everyone benefits from sustained growth
		Trade-offs between growth and inclusion will inevitably arise and need mitigation
		Inclusive labour markets can yield widespread benefits when policies are appropriately designed
		Successful transition means investing in places left behind
		Managing an inclusive transition requires embedding inclusiveness in policymaking
	References
		Annex 6.A. Overview of policy issues and responses in promoting inclusive growth
		Annex A. Pilot Action on Regions in Industrial Transition: The peer-learning exercise
Annex A. Pilot Action on Regions in Industrial Transition: The peer-learning exercise