Unpacking the growth impacts of European Union Cohesion Policy: transmission channels from Cohesion Policy into economic growth

In the context of proposals for a stronger focus on results in Cohesion Policy post-2020, it is necessary to strengthen the link between interventions and evidence on effectiveness. This paper argues that growth regressions and regression discontinuity analysis focusing on regional growth do not provide sufficient detail to support policy-makers in intervention design. A more nuanced picture would be achieved by unpacking intervention in different policy areas at the micro-level and analyzing the channels through which policy contributes to economic growth. The paper reviews the main direct and indirect transmission channels in three areas: research and innovation; support to enterprises; and infrastructure. In this respect, impact evaluations at beneficiary and, in particular, firm level offer a rich potential source of evidence and need to be systematically built into data collection and evaluation of post-2020 Cohesion Policy.