Europe is entering a new phase of industrial policy characterised by growing emphasis on competitiveness, technological leadership, strategic autonomy and industrial sovereignty. Recent policy initiatives have called for stronger concentration of public and private resources around strategic technologies considered critical for Europe's future economic and geopolitical position. At the same time, the European Union remains committed to long-term societal objectives such as climate neutrality, sustainable mobility, energy security, sustainable agriculture and the protection of natural resources and ecosystems.

These developments raise important territorial policy questions. While concentration of investment may accelerate technological progress and strengthen Europe's global competitiveness, it may also produce uneven territorial outcomes by concentrating innovation capacity, talent, finance and economic opportunities in a limited number of regions. At the same time, alternative pathways based on broader participation, experimentation, entrepreneurial discovery and diffusion may generate different innovation and territorial dynamics. Understanding these trade-offs is increasingly important for ensuring that industrial sovereignty contributes not only to technological leadership but also to balanced territorial development across Europe.

Policy Objective

PROPOLIS aims to improve understanding of the territorial consequences of industrial sovereignty policies and to support evidence-based policymaking. Building on and extending the EURACE@Unibi agent-based modelling framework developed by the University of Bielefeld, the project combines simulation, foresight and scenario analysis to explore how different industrial policy trajectories may influence innovation, entrepreneurship, investment, employment and regional development across European regions. Particular attention is given to the interaction between competitiveness objectives, industrial sovereignty and territorial cohesion, as well as to the conditions under which frontier technologies and innovation opportunities emerge and diffuse across regions.

Policy Questions

• Which technologies and sectors are most likely to attract priority support under emerging industrial sovereignty strategies? 
• What territorial effects may result from concentrating resources on selected technologies and regions? 
• Are frontier technological positions primarily driven by policy prioritisation and resource concentration, or can they also emerge through broader processes of experimentation, diffusion and entrepreneurial discovery? 
• Under which conditions can positive spillovers, knowledge diffusion and industrial upgrading spread beyond leading regions? 
• How do different modes of innovation organisation and coordination, from concentrated mission-oriented approaches to more distributed and exploratory approaches, affect regional development outcomes? 
• How can European policy instruments contribute to balancing competitiveness, technological leadership and territorial cohesion?

More Information

Contractor

• Prognos AG (lead)
• University of Bielefeld
• Université Côte d'Azur
• CSIL
• Prof. Simona Iammarino, Gran Sasso Science Institute
• Prof. Slavo Radosevic, University College London

Contacts: Vassilen Iotzov (Lead Manager Research & Policy), Ramona Tanasa (Budget and Financial Manager)