Industrial sovereignty and regional inequalities in the EU

Client

ESPON EGTC

Year

ongoing

Partner

CSIL, Université Côte d’Azur, Universität Bielefeld, Prof Iammarino, Prof Radosevic


Europe’s push for industrial sovereignty is reshaping investment in key technologies such as semiconductors, artificial intelligence and clean energy. While intended to strengthen resilience and competitiveness, it also raises a critical question: will all regions benefit equally, or will disparities widen?

The PROPOLIS project addresses this challenge by analysing how industrial policy affects regional development across Europe and how cohesion can be safeguarded.

Prognos and partners are analysing how different strategic orientations in industrial policy translate into regional outcomes. They will identify regions at risk of exclusion and determine the conditions under which industrial sovereignty strategies can generate positive spillovers.

As investment increasingly targets frontier sectors such as green hydrogen and advanced manufacturing, there is a risk that economic activity concentrates in already strong regions. PROPOLIS therefore:

  • maps the EU’s industrial policy landscape,
  • analyses territorial impacts under different scenarios, and
  • identifies conditions for positive spillovers to less advanced regions.

Our approach

PROPOLIS (Projecting Regional Outcomes of Policies aimed at Industrial Sovereignty) is a two-year applied research project funded under the ESPON 2030 Programme. It examines whether the EU’s focus on strategic, mission-oriented industrial policy supports or undermines regional equality. Prognos leads the project and collaborates with Université Côte d’Azur, Universität Bielefeld and CSIL. Outputs include policy briefs, an interactive data portal and recommendations for future EU and regional policies.

At its core is an agent-based model that simulates how firms, workers and regions respond to policy changes. This is complemented by foresight scenarios exploring:

  • a baseline development,
  • targeted policy interventions, and
  • adaptive regional responses. 

Links and downloads

More information on the ESPON website

Project team: Bianca Illing, Dr Jan-Philipp Kramer, Lorenzo Pelizzari, Fabian Schmidt, Vincent Vogelsang, Miguel Wahle

Last update: 06.07.2026

Do you have questions?

Your contact at Prognos

Dr Jan-Philipp Kramer

Partner, Head of EU Services

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