Place-based innovation and balanced territorial development are ‘key’ to Europe’s technological sovereignty.
Regions and cities urged stronger support for regional innovation ecosystems and for fostering startups and scaleups across all territories to ensure Europe’s long-term competitiveness, territorial cohesion and technological sovereignty, at the plenary session of the European Committee of the Regions (CoR) on 5 March.
In the opinion led by Jozef Viskupič (SK/Renew Europe), Chairman of the Trnava Self-Governing, local and regional leaders welcome the EU Startup and Scaleup Strategy launched by the European Commission in May 2025 as a key step to boost Europe’s innovation capacity and competitiveness by supporting startups and scaleups. However, they warned that persistent inequalities between regions in access to finance, talent, infrastructure and networks could deepen the innovation divide across EU regions and undermining the EU’s cohesion and long-term competitiveness.
CoR members stressed that, for the strategy to succeed, regional innovation ecosystems must be recognised as a cornerstone of Europe’s competitiveness and supported through a strong place-based approach. They called for long-term public investment, simpler rules, and stronger support for regions in rural and peripheral areas. Place-based policies such as smart specialisation strategies, regional innovation valleys and digital innovation hubs should be integrated into the Strategy, with targeted support for regions facing industrial or demographic challenges.
Regions and cities highlighted the key role of local and regional authorities in building innovation ecosystems and turning EU initiatives into real local impact. They therefore called for their full involvement in implementing the Startup and Scaleup Strategy and stressed that only a multi-level governance approach, bringing together the EU, Member States, and regional and local authorities, can ensure the Strategy’s success. They also urged Member States to involve regional and local authorities in national innovation plans aligned with EU priorities.
The opinion called for stronger synergies between Horizon Europe, Cohesion Policy and the European Innovation Council to bridge the research-to-market gap and unlock underused regional innovation potential. It also urged a fair geographical distribution of venture capital, stressing that supporting startups and scaleups in all regions is key for delivering the EU’s green, digital and social transitions.
Local and regional leaders stated that the forthcoming European Innovation Act and the proposed 28th regime for innovative companies must incorporate a clear local and regional dimension, ensuring simplified procedures, reduced administrative burdens and harmonised access for startups across the EU, while respecting national labour frameworks.
CoR members also called for stronger cross-border and urban–rural innovation linkages to prevent the centralisation of innovation and to ensure inclusive growth across the Union. They highlighted that rural, peripheral and outermost regions required tailored instruments so they would not be left behind at any stage of the startup and scaleup process and called for deeper cooperation between high- and low-capacity regions, underlining that balanced territorial development is essential for Europe’s competitiveness and technological sovereignty.
Quote:
Rapporteur Jozef Viskupič (SK/Renew Europe), Chairman of the Trnava Self-Governing Region: “Too many European startups never scale – not because they lack ideas, but because their local ecosystems lack skills, capital, and connections. With this European Committee of the Regions opinion, we call for a place-based Startup and Scaleup Strategy that strengthens regional ecosystems and gives entrepreneurs in every region a fair chance to grow.”
Background
Building the European Research Area: A Local and Regional Perspective (CoR, opinion 2025).
Ethical Artificial Intelligence and access to supercomputing for start-ups (CoR opinion, 2024).
Recommendations for the next Framework Programme (FP10) for Research and Innovation (CoR opinion, 2023).
Contact:
Ângela Machado
Tel: +32 475 41 31 58
