Spatial concentration of Research and Innovation funding: How do excellence and cohesion logics differ?

This paper examines the spatial distribution of European Union research and innovation (R&I) funding, comparing excellence-oriented (Horizon 2020) and cohesion-oriented (Cohesion Policy) instruments, and analysing the role of governance level within Cohesion Policy. Using NUTS3-level data from the 2014-2020 programing period and spatial econometric models, we find that Horizon 2020 funding is concentrated in regions with high patent intensity, GDP per capita, and knowledge-intensive services, reinforcing cumulative advantage and contributing predominantly to within-country inequalities in access to funding. Cohesion R&I funding exhibits stronger between-country redistribution and integrates socio-economic vulnerability, though its internal allocation varies with governance: national management fosters clustering and positive spillovers, while regional management spreads resources more widely but intensifies intra-national competition. The results underscore the trade-offs inherent in EU R&I funding; policies that prioritise excellence, redistribution, or spatial coordination cannot maximise all objectives simultaneously, with governance choices mediating the balance between concentration, spillovers, and territorial equity.