Funding Synergies for Innovation, Industrial Transition and Entrepreneurship

European Regional Development Fund (ERDF) programming in the 2021-2027 financial period rec-ognises the role of human capital in place-based approaches to territorial development and innova-tive transformation, allowing for investment in skills for smart specialisation, industrial transition and entrepreneurship. This research quantifies the amount of investment earmarked across the EU-27 for this, alongside similar investments under the temporary Recovery and Resilience Facility (RRF), acknowledging the importance, and yet complexity, of ensuring complementarity between the funding streams. Whilst the legal basis for both resides in the Union’s goal of strengthening eco-nomic, social and territorial cohesion and reducing disparities, the design and implementation of the two instruments reflects different governance models, performance frameworks, policy priorities and actors. The analysis aims to capture how these two instruments support skills development rel-evant to the twin transitions and smart specialisation domains across heterogeneous socio-economic and institutional territories within the context of the European Semester recommenda-tions. However, it provides an overview of proposed investment at the point of adoption of the two sets of programmes in 2022 and 2023, recognising that the results and impact of the allocations, and their integration and connection with their local innovation ecosystem, will depend upon the ter-ritorial context, the projects and beneficiaries selected and implementation approaches.