Regional development policies play an important role in the decision-making processes of businesses, particularly in respect to their strategies for Innovation. Strategic approaches developed by Public Administrations which are clear, specialised and well-communicated to all interested parties clearly act as an incentive for business development and as a magnet for large companies, skilled staff and investment in general.

There are numerous examples which show that specialisation, initial guidance and consistency in the strategies for public support to Companies and Universities have yielded extremely positive results in terms of regional development. These strategies have successfully addressed aspects such as the creation of new businesses, the establishing of research centres and specialised universities, the promotion of business clusters focusing on innovation, the specific endorsement of Innovation in SMEs and ongoing education in research and Innovation.

The role of the regions in the knowledge-based economy is fundamental in achieving the goals established by the Europe 2020 Strategy (E2020). With this objective in mind, the Commission is examining various forms of participation to help increase the innovative potential of the EU. In fact, the different strategies emanating from the Community’s various bodies have established effective cooperation between the different agents and the development of a more balanced and sustainable approach to R&D throughout the EU as one of their main priorities.

• Gradual reduction in regional public funding to support R&D&i.
• Insufficient specialisation in the Spanish university system.
• Lack of coordination and complementary approach between the various agents involved in the regional Innovation system.
• Reduction of ERDF funds as from 2013.
• Overlapping in the functions of the various public administrations.
• Limited visibility of the role and responsibility of the regional institutions which are dedicated to Innovation.
• Regional policies which prioritise protection over creation.