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New Factors for Territorial Development and their Role in EU policy 1

At a time when physical distance or travel/freight costs are becoming less and less a constraint to economic activity and quality of life, new factors for territorial development (NFTD) are increasingly impacting regional dynamics in Europe, making it possible to overcome traditional difficulties associated to peripheral locations, and offering new opportunities for development of peripheral areas. These “soft factors” include the existence of business networks and the efficient flow of innovation, the use of the potentials offered by information society technologies, a thick and well organised governance structure, the presence of social and human capital, and the integration of tourism in the development strategy. This paper aims at answering the following questions: is the EU policy promoting the development of these NFTD? If so, is it specifically addressing the needs of peripheral areas? The research is based on a review and analysis of 72 EU initiatives (protocols, white and green books, policies, programs and lines of action). 1. PERIPHERALITY AND PUBLIC ACTION The fall of Fordism, the increasing diversification of the economic activity and the rapid development of new technologies, have reduced the role of certain elements that have traditionally determined the location of economic activity and, thus, the growth potential of a particular territory (capital, adequate manpower, prime matter or energy). The reduction of the geographic requirements for all the Weberian location factors, has provoked a new map of regional growth in which traditional core regions still keep many advantages (skilled labour force, development of NICT, equipment and infrastructure, accessibility, capital, etc.), though some peripheral areas show increasing ability to find and sustain elements of territorial advantage and competitiveness. Besides, some core areas begin to suffer from important weaknesses that are reducing their growth (inadequate productive orientations, congestion, undesirable conditions of living, costs of labour and land, etc.). 1 The research on which this paper is based forms part of the AsPIRE (Aspatial Peripherality Innovation and the Rural Economy) project, which is funded by the EU Fifth Framework (LIFE) Programme (Contract No QLK5-2000-00783). The research partnership comprises the Scottish Agricultural College, TEAGASC (Dublin), National University of Ireland, Galway, University of Valencia, University of Patras, University of Dortmund, and the University of Helsinki. 2 New Information and Communication Technologies