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Innovation and Regional Development, Do European Structural Funds make a Difference?

Abstract The article draws on a thematic evaluation of Research Technological Development and Innovation (RTDI) related actions supported by the Structural Funds to assist declining industrial areas or Objective 2 regions, during the period between 1989 and 1999. Over the 10 year period, three main approaches were identified in Objective 2 regions, the last two becoming predominant during the latter part of the period: technology push with funding of large projects such as science parks and research facilities; technology transfer with measures to disseminate technology; and demand pull with clearly identified and self contained RTDI priorities. While drawing lessons from the last decade, the paper also integrates some preliminary observations on structural funds investments for innovation during the current 2000–2006 programming period and concludes with a review of possible scenarios for the further development of RTDI in lagging regions in the framework of the Lisbon Strategy.