In Europe, there used to be a clear plan for innovation: focus on the capitals, support the flagship projects, and expect results to spread. Today, the whole script is being changed. A new structure is taking shape, one in which not only countries but also regions have impetus. Some are little, some are medium-sized, but many are very quick.
The EU’s innovation rating has gone up by more than 12% in the last seven years. But it’s more important to know where that growth is happening. It’s not just in Berlin or Paris; it’s also in South Moravia, Valencia, and Ljubljana. These regions are turning their native strengths into scalable advantages, often by improving coordination, making policies more explicit, and using resources more effectively.
Key Facts: How Europe’s Innovation Is Becoming More Regional
| Focus Area | Key Insight |
|---|---|
| Innovation Growth | EU innovation performance rose 12% since 2018 |
| Regional Leaders | Success stories include Valencia, Ljubljana, and South Moravia |
| Smart Specialisation | 147+ regions implementing Regional Innovation Valleys (RIVs) |
| Talent and Investment | Deep tech hubs growing outside capitals, backed by EU and private funding |
| Persistent Gaps | Some regions in Hungary, France, and Eastern Germany remain behind |
The change isn’t random. EU-wide policies are helping to mold it in a way that supports this kind of localized, focused growth. The Regional Innovation Valleys program is one of these projects that has now teamed up with more than 147 regions. These regions are coming up with “smart specialization strategies,” which means they’re focusing on their natural strengths and connecting them to Europe’s bigger goals, such as going digital, coming up with new health technologies, and using green energy.
These valleys aren’t just tests of policy; they’re real connections. The EU is breaking down long-standing barriers by building innovation corridors that connect regions across borders. For instance, a biotech cluster in Catalonia might now work directly with a research group lead by a university in Poland on regenerative medicine. Because of this, the network may use local inventions to solve problems on a continental scale with great success.
There is also a more significant change in structure happening. Parts of southern Germany and Navarre in Spain are moving toward cleaner, smarter ways of making things. These locations used to be known for traditional industries, but now they are home to test projects in AI-enabled logistics and zero-emission manufacturing. Public-private partnerships are very important in this shift because they combine government money with private initiative to move faster than normal policy cycles would allow.
This spring, when I was in Brno, I went to a roundtable discussion with local business owners, university deans, and city officials. What remained with me was the shared understanding, not the tech pitch. Everyone at the table was talking about a different project, yet they all seemed to be working toward the same goal: making their area more ambitious, self-sufficient, and connected to Europe’s future. Having that sense of purpose was incredibly refreshing.
Skill is what it takes to develop these systems. Capitals still draw a lot of skilled people, but smaller places are getting more and more competitive. One reason is that the cost of living is reasonable. Another is that smaller ecosystems can offer better mentorship, faster collaboration, and less bureaucratic friction.
The European Innovation Council (EIC) has taken note of this. It gives start-ups in these small ecosystems a lot of money, business help, and coaching. It also helps firms that work in more dangerous or less valued locations, which makes them more resilient. The Scaleup Europe Fund brings together public and private money to help deep tech companies reach global markets directly from their home regions.
At the same time, the EIT Deep Tech Talent Initiative is working on a subject that has been there for a long time: skills. This effort has trained more than a million people so far and is filling up gaps in important areas including climate technology, AI, and advanced manufacturing. This method is very useful for places that want to change their industrial bases into industries that are focused on the future.
Inclusiveness is also getting the attention it needs. Women-led businesses are starting to grow in secondary areas and capital cities all over the continent, due to Women TechEU, which is now in its fourth phase. These businesses are based on great ideas and growing confidence. The most recent number of applicants has broken records, which shows both interest and potential.
Even with these improvements, certain communities are still behind. Eighty-two places said that their ability to innovate went down between 2023 and 2025. Some of these areas are in Hungary, northern France, and eastern Germany. There are many reasons for this, such as brain drain, lack of funding, and outdated infrastructure. But the risk is clear: a two-speed innovation economy might come back within countries, not only between them.
The EU is putting more money into horizontal learning instead of going back to centralized. DeepTechValleys is one project that is helping to move this idea forward. It encourages areas to talk about strategies, try out different policy approaches, and grow ecosystems from the ground up. What makes it so groundbreaking is that it focuses on turning vague goals like “green growth” or “digital readiness” into measurable, local benefits.
By using pan-European mechanisms to connect various regional projects, the system is becoming more flexible and open to everyone. This is crucial since innovation is always changing. What works in Brittany might not work in Bratislava. But if there are bridges, both sides can learn from each other.
This small change in the region has gained enough speed over the past ten years to seem like it can’t be stopped. Local governments are becoming more entrepreneurial. Universities are changing their curricula to take place-based issues into account. And more and more, business leaders are choosing to stay put because they know that big changes don’t always need moving.
This kind of diverse strength is what will make Europe competitive in the future. Central hubs like Paris and Amsterdam will still be important, but they won’t have to do everything. Instead, dozens of regions are stepping forward as peers, not followers. Each has its own rhythm, history, and priorities. And that may be the most important change of all, more than any one notion.
