The Ukraine conflict powerfully underscores the intertwined nature of our global and regional economies. Such events reveal the vast, cascading effects that can arise from disruptions in one country, highlighting the critical need for a refined understanding of these economic interdependencies within the European Union in a context of Strategic Autonomy. Moreover, the forthcoming EU enlargement promises to introduce new competitive dynamics extending well beyond the immediate neighbours of the prospective new member states.

 

This presentation will delve into the evolving landscape of global connections, exploring the pivotal roles of global value chains (GVCs) and foreign direct investment (FDI) in regional development. We will discuss strategies for regions to harness these elements for resilience, upgrading, innovation, and economic growth. The focus will be on strategic integration and adaptation of GVCs to bolster local development amidst shifting geopolitical and economic conditions.

 

The session will also introduce innovative, GVC-aware regional development policies. These strategies are designed to target specific segments of selected GVCs, using them as catalysts for local advancement, innovation, and sustainable growth. This approach not only aligns with the current economic realities but also prepares regions to capitalize on emerging opportunities in a dynamically expanding European Union. This is about gradual change on the strengths that are already present in local economies, shifting the focus of regional policies from specific sectors and technologies towards tasks and local value generation. Some reflections on how GVCs can support regions in the digital and green transitions will conclude the talk.