ESPON Programme

How can European regions successfully navigate the green industrial transition when competing for resources and labour?

Based on the findings of the ESPON RE-Industry project, Øyvind Vennerød, Jonas Erraia and Einar Stoltenberg Wahl from Menon Economics highlight that successful industrial renewal depends on matching specific sectors to a region’s unique structural strengths and objectives, rather than promoting generic strategic industries in the abstract.

Key points of their analysis:

☝️Regional endowments are categorised into five pillars: energy, workforce, market access, ecosystem, and innovation. Data shows no single European region is strong across all five.

👌Different green industries serve different strategic goals. For example, battery cell production generates significant employment, whereas hydrogen production yields fewer jobs but supports long-term cluster development.

👉Regional authorities must carefully assess their risk appetite in relation to technological maturity, market conditions, and regulatory frameworks before committing to large-scale industrial projects.

Read the full analysis 👇:
[https://loom.ly/1A-GKZE)

ESPON Targeted Analyses support territorial development processes. They bring together policymakers who share similar challenges and look for new territorial evidence and a European perspective.

Do you know that you can use an ESPON Targeted Analysis to support your territorial policies with evidence and data?

Join our webinar on 11 June 2026 and learn everything you need to know about our calls for expression of interests, our thematic plans, eligibility rules, application process and more
Register today!

https://loom.ly/8QWLJC8