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Challenges of Small and Medium-Sized Urban Areas (Smuas), Their Economic Growth Potential and Impact on Territorial Development in the European Union and Latvia

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Challenges of Small and Medium-Sized Urban Areas (Smuas), Their Economic Growth Potential and Impact on Territorial Development in the European Union and Latvia Challenges of Small and Medium-Sized Urban Areas (SMUAs), their economic growth potential and impact on territorial development in the European Union and Latvia Research report to support the Latvian EU Presidency 2015 This paper has been written by HESPI and EUKN and consulted by ESPON on behalf of the Latvian Presidency of the Council of the European Union (The Ministry of Environmental Protection and Regional Development). The research is financed by the Norwegian financial instrument programme 2009-2014 No. LV07 “Strengthening of capacity and institutional cooperation between Latvian and Norwegian institutions, local and regional institutions“ Project No 4.3.-24/NFI/INP-002. Final Report, 25 May, 2015 Social, Economic and Humanities Research Institute (HESPI) of Vidzeme University of Applied Sciences Cēsu iela 4, | Valmiera, LV-4201 | Latvia Tel. + 371 64207230 | www.va.lv/en/hespi Contact: Agita Līviņa, Director of HESPI European Urban Knowledge Network EGTC Koningin Julianaplein 10 | 2495 AA The Hague | Netherlands Tel. +31 703028484 | www.eukn.eu Contact: Mart Grisel, Director of EUKN EGTC 1 List of Authors Visvaldis Valtenbergs (HESPI), Alfons Fermin (EUKN), Mart Grisel (EUKN), Lorris Servillo (ESPON), Inga Vilka (University of Latvia, Faculty of Economics and Management), Agita Līviņa (HESPI), Līga Bērzkalne (HESPI). Table of Contents List of Abbreviations ............................................................................................. 3 List of Boxes, Figures Tables and Maps .................................................................. 5 Executive Summary............................................................................................... 7 1. Introduction ................................................................................................ 12 1.1 Aim and Relevance of the Study ....................................................................................................... 13 1.2 Research questions and objectives .................................................................................................... 13 1.3 Terminology: defining SMUAs .......................................................................................................... 14 1.4 Research Approach ................................................................................................................................ 17 1.5 Structure of the report ......................................................................................................................... 18 2. SMUAs in Europe: characteristics and trends ................................................... 19 2.1 Urban Europe ........................................................................................................................................... 19 2.2 SMUAs in Europe: characteristics and diversity ....................................................................... 21 2.3 Comparison and relation of SMUAs with larger cities and rural areas ............................ 24 2.4 SMUAs and development: economic profiles of SMUAs ......................................................... 33 2.5 Contribution of SMUAs to national and European development ....................................... 36 3. Challenges, preconditions and directions for development of SMUAs .............. 41 3.1 Development challenges of SMUAs in Europe............................................................................ 41 3.2 Preconditions for development of SMUAs in Europe .............................................................. 44 4. Strategies and policies for development of SMUAs .......................................... 65 4.1 Development directions and strategies ........................................................................................ 65 4.2 EU policies and funds ........................................................................................................................... 74 5. Key Findings and Policy Recommendations ...................................................... 82 5.1 Key Findings ............................................................................................................................................. 82 5.2 Recommendations ................................................................................................................................. 89 References .......................................................................................................... 92 Annex 1: Latvian case study ................................................................................ 96 Jūrmala Ventspils Rēzekne, Valmiera, Jekabpils, .................................................. 98 Annex 2: Data about SMUA's selected for Latvian case study.............................. 132 Annex 3: Template for identifying good practices in SMUAs ............................... 137 Annex 4: EU data analysis approach ................................................................... 140 Annex 5: EU funds .............................................................................................. 142 Annex 6: Participation of SMUAs in URBACT projects ......................................... 153 Annex 7: Strategic EU documents on challenges and potentials of SMUAs .......... 155 2 List of Abbreviations CEF Connecting Europe Facility CF Cohesion Fund CLLD Community Led Local Development CPR Common Provisions Regulation CSB Central Statistical Bureau of Latvia EAFRD European Agricultural Fund for Rural Development EC European Commission EIB European Investment Bank EIT European Institute for Innovation and Technology EMFF European Maritime and Fisheries Fund ERDF European Regional Development Fund ESF European Social Fund ESIF European Structural and Investment Funds ESPON European Observation Network for Territorial Development and Cohesion ETC European Territorial Cooperation EU European Union FEI Financial Engineering Instruments FI Financial Instruments GNI Gross National Income HF Holding Fund ICT Information and Communication Technology INEA Innovative and Networks Executive Agency ITI Integrated Territorial Investment JESSICA Joint European Support for Sustainable Investment in City Areas JRC Joint Research Centre LEADER “Liaison Entre Actions de Développement de l'Économie Rurale“, meaning 'Links between the rural economy and development actions' MA Managing Authority MS Member State NGO Non-governmental organisation NUTS Nomenclature of Territorial Units for Statistics OECD Organisation for Economic Co-operation and Development OP Operational Programme PPP Public Private Partnership RDP Rural Development Programme R&D Research and Development RIS3 Research and Innovation Strategies for Smart Specialisation SME Small and medium-sized enterprise SMST Small and medium-sized town SMUA Small and medium-sized urban area SRDA State Regional Development Agency, Latvia UDF Urban Development Fund 3 Member States abbreviations Country code Country BE Belgium BG Bulgaria CZ Czech Republic DK Denmark DE Germany EE Estonia IE Ireland EL Greece ES Spain FR France HR Croatia IT Italy CY Cyprus LV Latvia LT Lithuania LU Luxembourg HU Hungary MT Malta NL Netherlands AT Austria PL Poland PT Portugal RO Romania SI Slovenia SK Slovakia FI Finland SE Sweden UK United Kingdom 4 List of Boxes, Figures Tables and Maps Boxes with the case studies from member states Box 1: Diversity of definitions of small and medium-sized urban areas ................................................ 16 Box 2: Growing SMUAs. The example of Letterkenny, Ireland .............................................................. 27 Box 3: How the Other Half Grows: The Future Of Prosperity And Public Services In Non-Metropolitan England ......................................................................................................................................... 31 Box 4: Growth by economic specialisation. The case of Food Valley Wageningen ................................ 36 Box 5: The role of SMUAs in common territorial development from the viewpoint of the member states ............................................................................................................................................. 37 Box 6: Italy's Policy of Inner Areas .......................................................................................................... 39 Box 7: Energy policy for SMUAs ............................................................................................................. 40 Box 8: Challenges of SMUAs in Europe ................................................................................................... 42 Box 9: Preconditions and development directions for development of SMUAs .................................... 45 Box 10: The Case of Urban Renewal of Saint-Chamond in France ......................................................... 47 Box 11: Searching for new urban identity. The case of Kranj in Slovenia .............................................. 48 Box 12: Free Economic Zones: The Case of Rēzekne in Latvia................................................................ 49 Box 13: The importance of external investment in case of Alba Iulia in Romania ................................. 50 Box 14: Can SMUAs develop as knowledge and creative economies? A case of City of Aveiro, Portugal ...................................................................................................................................................... 53 Box 15: Urban-rural interaction
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