Industrial transition: Commission and OECD boost EU-North American partnerships

The European Commission and the OECD have launched a call for expressions of interest aimed at EU regions to promote the improvement of regional development policies for industrial transition. The initiative, which also involves North America, aims to encourage transatlantic cooperation through the exchange of knowledge and experiences.

I3 Support Facility: A Hub Supporting Innovation in Less Developed Regions

The call for expression of interest is part of the Regio-Transatlantic initiative, promoted by the DG Regio of the European Commission in collaboration with the OECD Centre for Entrepreneurship, SMEs, Regions, and Cities. It aims to strengthen transatlantic cooperation between regions of the European Union and North America (USA, Canada, and Mexico) to address the challenges of industrial transition. 

The call for expressions of interest proposed by the Commission and OECD aims not only to improve transatlantic political dialogue but also to provide a solid analytical basis on the determinants of successful industrial transition, a process involving the shift from traditional manufacturing to advanced industrial activities and services, crucial for regions in the European Union and North America.

Through the joint initiative, participants will be able to develop transformation pathways to move from the "geography of discontent" of regions affected by industrial decline (characterized by low economic development and high unemployment) to a "geography of opportunities". This transformation can only be achieved through the introduction of innovative policies, strategic investments, and the creation of a competitive and sustainable ecosystem that fosters economic diversification and technological advancement.

The DG Regio Call for Industrial Transition in EU and North American Regions

The call "Regional Development Policy for Industrial Transition: A Transatlantic Perspective" aims to identify and select six partners from EU regions or EU Member States for a project in collaboration with North American regions (USA, Canada, and Mexico), aimed at strengthening regional development policies for industrial transition. 

Participants must develop analyses in collaboration with partners that provide concrete solutions and best practices to governments and policymakers to support industrial transition in various regions while mitigating potential negative effects of this process.

The key themes of the project concern six main areas:

• Technological Change – Digital transition, artificial intelligence, Industry 4.0;
• Energy and Climate Transition – Net-zero goal, energy efficiency, alternative clean energies;
• Demographic Transition – Demographic decline, aging population, migration;
• Impact of International Trade Policy – Non-tariff barriers, tariffs, transition from globalization to localization;
• Political Polarization – Democracy, trust, misinformation/disinformation;
• Urban Renaissance – Transformation of post-industrial areas into sustainable green cities.

For each of these themes, the initiative will analyze the impact of ongoing processes on EU and North American regions, the available opportunities, and the multi-level governance tools needed to enable policymakers to maximize the associated benefits.

Specifically, each selected region must twin with a North American region and contribute to a thematic case study. Candidate regions may already have a twinned partner at the time of application or commit to establishing a twinning with a region identified later through virtual "match-making" events. Subsequently, each pair of regions will select one or more relevant themes for their industrial transition, and ideally, both twinned regions will work on the same theme (with at least one having already made significant progress in an aspect of industrial transition).

Regarding the project structure, the action will develop over 24 months and will be divided into three complementary components, each with specific outputs and activities.

The first, Component 1 – Opportunity Factors for Industrial Transition, to be realized between 2025 and 2026, includes:

• the drafting by experts of two brief analysis documents, one more academic and one more practical;
• dedicated seminars bringing together academics and policymakers from both sides of the Atlantic to discuss the intersection between the specific theme and the opportunities of industrial transition;
• Subsequently, a summary of the seminars will be prepared, with key lessons and concrete actions identified, to be published by the OECD on a dedicated platform.

Between 2026 and 2027, Component 2 – Transatlantic Case Studies will be implemented, a more operational phase that will see the OECD develop six "twin" case studies, with contributions from participating regions. Each case study will be dedicated to one of the six main areas already mentioned and will reflect the experiences of two twinned regions. These studies will provide practical learning tools for regional and local authorities, offering concrete insights for designing industrial transition policies.

Finally, between 2026 and 2027, Component 3 - Peer Learning and Experience Exchange will be developed, consisting of events between Europe and North America aimed at strengthening partnerships and networks and promoting the exchange of experiences between European and North American policymakers on specific topics of interest, including the issue of funding for industrial transition. 

Additionally, within Component 3, a Transatlantic Forum on the Future of Industrial Transition will be promoted, an international event aimed at a broader audience of policymakers, both those directly involved in industrial transition and those active in related sectors. The event should also produce a document related to the policy framework for industrial transition. 

DG Regio-OECD Call for Industrial Transition in EU-North America Regions: How It Works

Regarding the selection criteria for candidates, participants must:

• Be a public authority at the national or subnational level dealing with regional policy or a development agency of an EU Member State at the subnational level;
• Operate within the framework of regional development policy for industrial transition;
• Appoint a dedicated contact person to collaborate on the project;
• Have the ability to communicate effectively in English.

The North American partner, on the other hand, can be a local or regional public authority, a development or innovation agency, a university, a research center, a business association, or another relevant actor in the field of industrial policies.

Regions interested in the DG Regio and OECD call for expressions of interest must submit their application by March 21, 2025.

Once applications are received, the Commission and the OECD will evaluate participants based on the relevance of regional challenges (past or current) related to at least one of the project themes; experience in developing policies or projects related to industrial transition; motivation to actively participate in the project; ability to engage in a multi-year collaborative project with European and North American regions.

To gain more knowledge about the project's objectives, activities, and expected benefits, regions intending to participate can attend an informational webinar dedicated to the DG Regio initiative to be held on February 27.

To participate in the Commission and OECD call, click here

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