Cohesion Policy and SME Development: the Case of Moravia-Silesia Region

Abstract

The question on the relationship between cohesion policy expenditures and regional disadvantage was evaluated in this paper. Its focus was on SME development, using the Moravia-Silesia region in the programming period 2007-2013 as a model area. Hence, the flow of cohesion policy expenditures into disadvantaged regions was analyzed focusing on SME development. The results point out ambivalent conclusions. Firstly, a straightforward relationship between cohesion policy expenditures and regional disparities related to SME development was not identified. Cohesion policy expenditures did not follow the intensity of regional disadvantage in SME development. Secondly, disadvantaged regions were able to absorb both, high and low cohesion policy allocation. Therefore, case by case specifics have to be considered in thinking on cohesion policy expenditures in lagging regions. Finally, one may ask about the coherence of policies at various regional levels.