The European Research Area (ERA) aims to enhance Europe’s scientific and economic performance by promoting the circulation of knowledge, talents, and regional spillovers. However, this goal faces challenges due to self-reinforcing mechanisms that create a growing innovation divide across regions. This divide limits the EU’s ability to achieve greater integration and fully leverage regional excellence. In a knowledge economy, the free flow of resources and talent tends to concentrate in the most dynamic and attractive regions, further strengthening their performance and appeal.
The Outermost Regions (OR), with limited resources, researchers, and investment, face marginalization, hindering their ability to attract further resources and improve performance. These results in these regions being paralyzed as "Emerging" and having minimal participation in EU research programs like Horizon 2020, even though Horizon Europe appears as a promising lever to counteract marginalization and and accelerate their transition toward knowledge economy
However, achieving synergies between regional innovation policies and EU funding instruments, like structural funds and Horizon Europe, is challenging. Many regions experience a substitution effect, where structural funds replace Horizon 2020 funding, especially in the OR. This creates a "Substitution trap," locking these regions in dependency on ESIF. Overcoming this issue is crucial to improving their competitiveness and participation in the European Research Area.