Roberta Capello, Camilla Lenzi, Elisa Panzera (p)

Dimitris Kallioras

By reducing the importance of labour to firms and increasing the returns to wealth, automation generally decreases the labour share of income. This effect can vary depending on the degree of market concentration, as highlighted in the literature through the superstar firms hypothesis (Autor at el., 2020). The present paper claims that sectoral market power is not the only mechanism through which the automation-labour share nexus is affected. Automation is expected to be especially detrimental to the labour share also in areas characterised by the presence of highly specialised and geographically clustered firms, in spite of the degree of market concentration of firms’ activity sector. This phenomenon is defined in the paper as territorial market power. The paper investigates this hypothesis in a large-scale analysis of the manufacturing sector in European NUTS2 regions in the period 2011-2019. The results obtained through the estimation of a pooled OLS regression show that the labour share of income decreases not only due to automation in high market power sectors, in line with the superstar firms hypothesis, but also that automation in specialised areas decreases the labour share of income.

Dimitris Kallioras (p), Spyros Niavis , George Petrakos, Maria Tsiapa

Viktor Květoň

Against the backdrop of the EU economic integration process, the paper brings together a couple of distinct strands of literature, thus adding a salient perspective to the economic integration literature, studying a couple of distinct – though highly related – issues: (a) the patterns of regional business cycles synchronization; (b) the impact of business cycles on regional inequalities. Business cycles are defined as “a type of fluctuation found in the aggregate economic activity of nations that organize their work mainly in business enterprises”. Ergo, business cycles refer to the concerted cyclical upswings and downswings that characterize a span of macroeconomic variables - the most notable one is real GDP – and aggregate economic activity, in general. Typically, business cycles consist of a quartet of recurrent, but not periodic, stages: (a) expansion; (b) crisis; (c) recession; (d) recovery. Apparently, the notion of business cycles is not compatible with the neoclassical understanding of the (spatial) economy, which operates always in equilibrium and the only variations from a steady-state growth path may be arising from random or external shocks. Utilizing EUROSTAT data that refer to 276 EU regions (NUTS II level) and covering the period 1990-2020, the paper presents clear-cut empirical evidence, gained using sound and rigorous methods of empirical analysis, and provides a novel contribution to an area of research that has been (re-)gaining increasing interest. This is so as macroeconomic shocks – that influence regional inequalities – are considered to be the main driving forces behind business cycles.

Viktor Květoň (p), Vojtěch Kadlec (p)

Alina Popescu

This contribution explores the multifaceted roles that Global Value Chains (GVCs) and MNEs play in shaping the landscape of knowledge production and valuation, as well as their significant influence on offshoring activities, particularly patent offshoring. GVCs are integral components of the global economy that not only facilitate the flow of goods and services across borders, but also enable the transfer of knowledge and innovation. Patent offshoring, a critical aspect of this dynamic, involves transferring the development and registration of patents to different countries, often to capitalize on lower costs and access specialized expertise. This practice significantly impacts knowledge production and valuation, as it enables firms to tap into a global pool of intellectual resources and innovation networks. Therefore, we will provide answers to the following research questions:
What is the geographical concentration of the most valued (green) patents in EU regions and what is the association with quality of regional governance, economic and innovation performance?
What role does patent offshoring within GVCs/MNEs play in patent concentration and what are the effects on firms, workers and places?
The results in this paper are pioneering as it relies on patent valuation (and not just the absolute number of patents) and in addition expresses a spatial perspective of patent valuation and offshoring as a result of the action of MNEs/GVCs. The key messages can be seen threefold. First, the most valued offshored patents are from the most developed regions. It turns out that the most developed regions with MNEs are able to further strengthen their position as a result of patent offshoring. Due to the strong concentration of R&D activities not only of foreign but also of domestic firms, knowledge outflow does not have a negative impact, on the contrary, the presence of MNEs in these regions creates positive agglomeration effects (like job creation in R&D etc.) in the more developed regions. The effects of MNEs and their offshore activities contribute to increasing income inequalities. In the case of less developed regions the outflow of know-how is further reflected in lower innovation and economic performance, and indirectly in lower economic performance. MNEs cherry-picked the most valuable knowledge production and anchor less developed countries and regions (e.g., former command economies in Central Europe) in the position of semi-periphery. The MNEs’ strategy for intellectual property protection is highly centralized and most patents are usually filed in the name of the parent firm.

Alina Popescu (p), Irina E. Ion , Cătălin Nechifor, Daniela-Luminița Constantin

Elisa Panzera

This study examines the implementation of just transition policies in Romania’s coal-intensive regions through a stakeholder lens. Grounded in theories of climate, energy, and environmental justice, the concept of just transition is framed around three core principles—distributive, procedural, and restorative justice—to address the socioeconomic impacts of decarbonisation. Originally promoted by trade unions and later integrated into international climate policies, these principles have guided the development of public policies aimed at protecting workers and communities amid the shift to a low-carbon economy.

A qualitative research methodology was used, with primary data collected from interviews and a focus group conducted between June and November 2024. Ten experts representing local and central authorities, civil society and employer organizations from the Jiu Valley region of Hunedoara county participated in this study. The research, guided by an interview framework from the ESSPIN project, sought to capture diverse perspectives on the operational challenges and opportunities of the Just Transition Programme (JTP).

The findings indicate that while the strategic vision of a just transition is well articulated in policy documents—supported by frameworks such as the European Green Deal and the Just Transition Mechanism - its practical implementation is fragmented. Multilevel governance issues, bureaucratic inefficiencies, and a lack of local administrative capacity impede the effective transposition of EU and national measures to the local level. The study highlights a marked divergence in stakeholder views: business representatives acknowledge potential economic benefits but point to financing barriers and stringent co-financing requirements, while trade unions and miners’ representatives express deep concerns about job security, inadequate social protections, and insufficient training opportunities.

Furthermore, the research underscores the critical role of transparent communication and meaningful public consultation. The perceived opacity of decision-making processes and ineffective monitoring mechanisms have fuelled scepticism among local communities, thus undermining trust in the transition process.

In conclusion, the study reveals a significant gap between the ambitious goals of just transition policies and their implementation on the ground. Addressing these challenges requires greater flexibility in policy implementation, streamlined access to financial resources, and enhanced stakeholder engagement at all governance levels. Without these adjustments, the just transition risks remaining a largely technocratic process, potentially exacerbating social inequalities and eroding public trust in institutions managing the energy transition.