Workpackages

General objective The general objective of this work package is to provide a background framework for the theoretical, empirical and policy analyses of the work packages WP2-WP6, trying to base the relationships among the EU and the NCs. Specific objectiveThe specific objectives of this work package are the following:

• to review the literature on the economic and social effects of both the most recent EU enlargement and the ENP with regard to issues like: (1) socio-economic cohesion and regional disparities; (2) intensities of economic interactions: trade linkages, labour migration, capital flows, knowledge flows, and research collaboration; to review the ENP policy framework and its historical development, as a means to offering solid background information for the other work packages; to develop a conceptual framework for the assessment of the impact of differentiated/incomplete integration on both new member states (NMS) and the neighbouring countries (NCs), with special reference to the sub-national level of regions (NRs both inside and outside the EU) to provide guidelines to the whole project on possible focus countries for in-depth survey and qualitative research

General objective The general Objective of this work package is to study, both theoretically and empirically, the patterns of economic interaction between the EU and its neighbouring countries (NCs), to project future trends and identify the effects of higher levels of economic integration to the growth, competitiveness and cohesion prospects of the two areas. Specific objectiveThe specific objectives of the WP are the following:

1. Analysis of the trade patterns between EU and NCs and their possible effects on growth, structural change and cohesion in both areas.
2. Analysis of the locational choices of EU mobile investment, the direction and drivers of capital mobility and its effects on the EU new member states and NCs.
3. Assessment of the efforts made by domestic and foreign firms to invest in technological and organisational capacities with a special focus on the impact of localised institutional environments.
4. Analysis of the spatial intra-country effects of higher levels of trade and investment interaction in both the EU and the NCs areas.
5. Discussion of the policy options at the EU level that take into consideration the effects of integration and attempt to increase and spread its benefits on both sides of the external EU borders.

General objective The main objective of this work package (WP3) is to elaborate policy measures that will permit to improve the economic potential of ENP regions and to minimize the impact of their further integration on current EU members.In particular, we will analyse the actual and potential future role of labour migration and its economic and social consequences (costs and benefits) both for destination (EU regions) and origin regions (neighbouring ones). Particular attention is given to the role of particular intangible assets, such as human capital, entrepreneurship and technology diffusion. Specific objectiveThe specific objectives of this workpackage are the following:

1. Predicting migration flows considering the role of policy and structural issues: The objective of this research is to provide scenarios on migration flows between EU and ENP regions putting special attention to two particular issues: particular migration legislations and policies in the EU; and the international specialization patterns in EU regions.
2. Returns to human capital and workers mobility from and to neighbouring regions: will focus on the analysis of spatial differences in the return to human capital as a potential explanatory factor of workers mobility from and to the neighbouring countries.
3. Remittances and human capital formation: will explore the factors that account for variation in remittance flows and if remittances contribute to human capital formation in neighbouring countries.
4. Entrepreneurship and the mobility of inventors: to explore how schooling and work experience acquired by immigrants in the destination countries can affect economic growth in their sending regions.
5. Migration and social capital: to analyse the influence of migration flows and attitudes towards ethnic diversity on social capital formation and thus, on EU regions’ economic growth
6. Policy implications: to provide policy suggestions, both for public and private institutions at the European, national and regional levels with respect to the impact of migration flows on human and social capital, and consequently on the economic outcomes of both, receiving and sending regions.

General objective The general objective of this workpackage is to investigate on the innovative performance of regions (EU27 and NC16) in order to understand to what extent this performance depends on the one hand on the endogenous ability in knowledge creation and on the other hand on the absorptive capacity to adopt and imitate other regions’ innovations. In particular we will analyse how internal and external factors (such as human capital, social capital, institutions, public policies, spatial spillovers) affect innovation activities and thus regional economic performances. Moreover, we will focus on the diffusion of innovations and research networks in order to derive policy implications at both the European and the NCs level. Specific emphasis will lie on analysing the economic dynamics of those countries (and regions) which have recently entered the EU (EU12) in order to conjecture on the evolution process involving the neighbouring countries. Each research activity will be the basis to formulate policy recommendations for the EU and its Neighbourhood Policy. Actually even in those research lines where due to data availability, the analysis is restricted to EU countries, we will emphasise the case of the new EU-12 countries in order to assess the positive and negative effects of EU enlargement. This can be considered as an experiment also useful to evaluate the future impact on neighbouring countries and therefore to derive policy recommendations for the NCs.

General objective The proposed workpackage is designed to investigate the current status of the social, cultural and institutional environment in the ENP countries and regions, and to identify the impact of current changes and transformations on the prospects for improved economic development, social cohesion, and stronger integration with the EU area and, in particular, with the neighbour members among the NMS. In order to achieve cohesion among cores and peripheries, institutional arrangements are required that ensure an efficient long-term upgrading of capabilities, functions, and networks at various levels. This workpackage will help explain the following critical aspects: 1) the specific features of social capital in the ENP area; 2) the role of cultural diversity and individual values on innovation; 3) the relationship between institutional environments and upgrading dynamics at the system, industry, firm, and individual level. These general aims will be pursued by integrating the specific objectives of WP5 with those pursued in WP2, WP3 and WP4. Specific targetsThe specific targets of this workpackage are related to the following institutional environments:

1. Social capital in ENP countries and regions: focus on the specificities of social capital in Central and Eastern European countries – both those already members of EU (NMS) and those who are included in the ENP framework (including the countries who might apply for membership in possible future enlargement rounds) – which differ remarkably from Western European EU-members. Social capital constitutes one fundamental determinant of innovation, economic growth, and more generally, of activities which may lead to higher prosperity in NCs and NRs, such as inter-firm cooperation, and the formation of communities and networks of people. Differences with respect to levels of social capital in the ENP area as whole will be highlighted through a comparative analysis.
2. Cultural diversity, individual values and innovation: analysis of how cultural diversity and individual values may drive creativity and innovation. The main goals are to explore how individual values of people from different cultures which affect their attitudes toward innovation.
3. Institutional environment: analysis of the current institutional environments in NCs and NRs in a comparative perspective, focusing in particular on the business climate, labour markets, mechanisms and networks for local governance, and legal and regulatory aspects connected with knowledge creation and innovation diffusion (as detailed below).
   • Business culture: identification of the appropriate features of the local business culture which favour economic development based upon a thriving local economy of small and medium sized businesses capable of generating exports to the EU from within the NCs and NRs and to create linkages for knowledge creation and transfer with multinational enterprises.
   • Vocational, educational and training (VET) systems: analysis of the capacity – in terms of both quantity and quality – of local educational sectors to generate employee skills needed by foreign investors and local business technological upgrading.
   • Local governance: analysis of how the institutions of local governance support local participation in decision making and social cohesion to support endogenous economic growth.

Legal and regulatory framework: identification of the factors that undermine the achievement of a common regulatory basis for the mobility of knowledge, innovation and technology between the EU and the NCs, and to provide knowledge to improve effective policy making at both public and private level.

General objective The present work package is dedicated to identifying and analysing policy recommendations with the objective of contributing to evidence-based policy making and integrated ERN policies. Through the synthesis of research results the WP will present an overview of potential EU policy options for strengthening of cohesion across the EU-27 and NC16 in the mid to long term. while a special focus will be placed on the ENP, due consideration will also be placed other relevant sectoral policies and instruments, such as education, research, innovation and transport/communication. The EU-27 link with the NCs is directly under investigation in this proposal, which focuses attention far more on the policy aspects of our research than on the development of novel theory or application of methods.  . Indeed, project researchers will be drawing heavily upon the substantial body of research findings and methods already available from previous investigations of assimilation and integration in Europe, with particular reference to innovation policy and the significance of intangible assets for the European Research Area. Specific research findings from this project may have different outcomes for NCs, based on policy content and contextual circumstances.  Unlike the usual research project that places emphasis more or less equally on the development of conceptual, methodological and policy inferences, this proposal will place greater priority on policy. Therefore in this workpackage, the institutional partners IEMed, ICBSS and TUBITAK, as well as the Advisory Board members will have an active and important role Specific objectivesElevating policy to a higher priority does not imply, however, less theoretical or methodological rigour.  Rather, it means that the research workpackages 1-5 and their task components will:

1. Pursue research designs that incorporate and build directly upon policy-relevant literatures by conducting concept-based review of research studies that examine broader policy regimes and relate them to empirically-based research in the literature.
2.  Choose variables, samples and cases most likely to illuminate the policy issues involved in NC.
3. Conduct methods of investigation that deploy analyses and measures clearly directed toward policy interpretation.
4. Yield specific findings or results that intentionally bear on:
   • conventional policy wisdom
   • broad understanding of policy issues
   • assumptions underlying current or proposed policies
   • the institutional apparatus and mechanics of policy-making
5. Spend considerable effort within WP task components to:
   • seek such policy-relevant findings and draw attention to them
   • interpret the findings in light of relevant policy literature(s) reviewed
   • prepare policy-briefs and guidelines, using templates supplied by WP6
   • offer specific policy inferences, whenever possible
6. WP6 will synthesize policy lessons by applying an economic model calibrated for European Union neighbourhood regions and systematically assimilating and collectively assessing policy-relevant findings of the project.

General objective Core concern of the SEARCH project is to contribute to cohesion and cooperation between the EU and the NC16, by adding to the current knowledge base through new research and analysis. This WP is dedicated to communicating with a wider audience about the project, the issues it addresses and its results. Through ongoing targeted dissemination activities the consortium will try to raise awareness, inform and engage two core target groups namely policy makers and academia, whilst also reaching out to other stakeholders (private sector, civil society, the general public).

General objective

1. To ensure an appropriate management network linking together all the project components and maintaining fluid communication with the Commission project officers.
2. To monitor the project progress in order to respect time and resources constraints and, at the same time, to achieve the planned outcomes