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

In: Territorial Impact Assessment

Author

Listed:
  • Ondřej Dvouletý

    (University of Economics, Prague)

  • Ivana Blažková

    (Mendel University in Brno)

  • Oto Potluka

    (University of Economics, Prague)

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.

Suggested Citation

  • Ondřej Dvouletý & Ivana Blažková & Oto Potluka, 2020. "Territorial Effects of EU Cohesion Policy Supporting Entrepreneurship: Findings from the Czech Republic," Advances in Spatial Science, in: Eduardo Medeiros (ed.), Territorial Impact Assessment, chapter 11, pages 195-210, Springer.
    • Handle: RePEc:spr:adspcp:978-3-030-54502-4_11
    DOI: 10.1007/978-3-030-54502-4_11
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