REGIONAL COMPETITIVENESS AND THE SINGLE MARKET

In the Single European Market, keener competition will take place not only between companies but also between regions. To analyse the regional effects of further European integration, the present paper sets out a broad concept of regional competitiveness. This concept includes so-called 'soft factors' such as the presence of production-oriented services, R&D and regional innovative capacity. The concept is assessed against regional sensitivity which captures the degree to which regions are affected by the Single European Market. In the light of recent developments in Eastern Europe, a broad perspective on regional sensitivity is argued for. On this basis, regional competitiveness and regional sensitivity are analysed in the context of the Single Market. The analysis identifies regions which are gaining momentum with regard to their competitiveness. It is shown that the winners from further European integration are not the traditional centres of wealth but a set of intermediate regions.