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The main objective of the book was identification and elaboration on the major changes in the Cohesion Policy of the European Union and their impact on location decisions of entrepreneurs in Polish regions.

On the basis of the literature review we can say that there are various and often ambiguous notions of a region—a place where investments can be located. Nevertheless it seems that the most relevant for economic geography researchers is to recognise a ‘region’ taking into consideration its functional features. According to early researchers, factors related to natural resources and regional features were the most important to entrepreneurs. Nowadays, an agglomeration is considered an economic advantage for entrepreneurs located in a given region, no matter what types of costs are reduced or how profits are maximised. Agglomeration economics can operate both internally or externally in firms. Other factors are consequences and outcomes of agglomeration: transport and communication infrastructure, access to innovation, and labour force. Location factors linked with the activities of local or central authorities are also of great importance. However many studies show that governmental interventions might not be effective, in terms of regional development, if investors are not convinced by a good business climate to localise their plants in a given region.

One of the most important economic policies of the European Union is the Cohesion Policy. It covers horizontal and sectoral tools which, as governmental interventions, should be applied by Member States in line with the EU rules, i.e., should not disturb competition within the internal market of the European Union and would be implemented only in the case of market failures. The main aim of the new Cohesion Policy is to ensure convergence of regions within the EU by improving their development and growth through new investment in infrastructure, research, development and innovation, human capital and strengthening their attractiveness to investors.

Poland is the largest beneficiary of the EU’s Cohesion Policy and can be treated as a ‘laboratory’ for evaluation of the effectiveness of public interventions aimed at regional development. Conclusions from the Polish lessons in this area for the period 2007–2013 can be useful not only with respect to implementation of the Cohesion Policy, but also for other public policies concerning investments carried out in the European Union. On the basis of the research and the evaluation evidence we can state that the Cohesion Policy is a generally effective instrument for the socioeconomic development of Polish regions. The entire amount of EU funds (with an exception for the Cohesion Fund) is spread between regions, albeit not equally. Although all Polish regions have developed more rapidly thanks to the Cohesion Policy interventions and converge with the EU average, one may observe that the effects are not spread out in the same manner in various voivodeships (regions). As regards microeconomic effects, the Cohesion Policy evaluation results indicate that public interventions involving the financing of innovation and research and development projects with low chances of commercialization in a short time period are highly effective, demonstrating large-scale net effects. According to the evaluation findings, the lowest level of deadweight effects is observed in the case of highly innovative and R&D projects subject to long-term commercialization, implemented by small and medium enterprises (projects with a high risk level and long-term rate of return, for which it is difficult to find commercial funding).

Taking into account the afore-mentioned conclusions of the effects of EU funds in Poland following its accession to the EU, it is extremely important to underline new features and aims of the new Cohesion Policy for the period of 2014–2020. These new ideas include, among others: (a) linking allocation of the Cohesion Policy funds with the Europe 2020 objectives; (b) reinforcing the territorial dimension of the Cohesion Policy; (c) the imposition of conditionalities; (d) stronger monitoring and evaluation; (e) the increased role of repayable instruments (re-use of the initial funds) as opposed to non-repayable grants; and (f) change of the paradigm underlying the Cohesion Policy of the European Union. The Cohesion Policy should become a standard bearer for the objectives of smart, inclusive, and sustainable growth in the Europe 2020 strategy in all EU regions and should not only exclusively cover the least developed parts of the EU. This will be done, inter alia, through a more balanced development of economic activity across all regions, including urban and rural areas and local communities, and increased involvement of local and regional authorities in operational programmes. In this way, the Commission proposed a number of important changes to the way Cohesion Policy is designed and implemented.

One of the most important instruments of the Cohesion Policy is regional state aid. Under the New Guidelines for 2014–2020 regional aid should contribute to achieving an ‘objective of common interest,’ i.e. reinforcement of economic cohesion in the EU by helping to better use endogenous factors which can be found in every region, in line with the new paradigm of the regional policy. Poland therefore needs to be prepared to program its regional aid in line with the Europe 2020 strategy. This means that new investment projects, in addition to reducing unemployment, should contribute to greater innovations in the economy. Under the new rules, regional aid will be allowed throughout the country, though the highest ceiling has been maintained only in the eastern regions. It seems then that the regional aid available in Eastern Poland should be attractive to potential investors thinking of location in Poland. However, external circumstances should also be kept in mind (for example, other regions in Central and Eastern Europe that will offer identical support with greater location advantages).

Another location factor, extremely important to entrepreneurs, is innovation. Effective innovation systems are a key element of growth and development at both the national and regional levels. According to the latest analysis, almost all Polish regions belong to the ‘modest Innovator’ category, what does not make them attractive to potential investors seeking new technologies and knowledge-based factors. On the basis of analysis of the innovativeness of Polish regions, it should be pointed out that all Polish regions are classified as non-Science and Technology-driven regions. The indicators with respect to both innovation capacity and innovation position, and changes in these indicators over the last decade, confirm that regional systems in Poland are at a stage of transition and not yet fully formed. The impact of the EU funds to promote innovation has so far been limited, which is reflected in the lack of significant changes in their innovation performance. However, all regions in Poland changed their position from low user/absorber regions in 2000–2006 to full users/absorbers in 2007–2013. Due to the fact that there is a huge diversity in regional innovation performance in Poland, the innovation support programs should be tailored to meet the needs of individual regions for the period 2014–2020. They should be linked with the modernization of industries, in particular strengthening those belonging to the particular technological specialization of a given region. Therefore, the concept of basing innovation policy on smart specialization, defined ex-ante, seems to be very relevant to addressing regions’ needs.

In the knowledge-based economy the level of human capital is one of the most important measures of regional competitiveness and attractiveness. The highest levels of human capital can be observed in those regions in Poland which lure the most highly skilled individuals with employment opportunities and relatively high wage levels. This process constantly deepens regional disparities in human capital levels in Poland. However, it also naturally leads to the creation of regions abundant in human capital, which can be competitive on the global market.

One of the aspects concerning the investment attractiveness of regions is the so-called business regulatory framework. It seems that due to the new initiatives launched within the Europe 2020 strategy climate and energy aspects have become more important than ever. The outcome of the research proves that the following factors were crucial in attracting foreign investment and acceleration of economic growth in many Polish regions: climate and energy policy implemented in Poland, existing sources of renewable energy (mainly biomass and wind energy), a supporting regulatory environment and accessibility of innovative ‘green’ technologies. Increased investment in innovative energy-saving technology in Polish regions and greater use of locally available renewable energy sources will depend on a combination of factors in the near future. Poland’s ‘climate choices’, defined in its national energy policy, will promote the endogenous development of individual regions. Poland needs a vision of the Cohesion Policy of the EU oriented not only at securing funds, but also at using them effectively with a view to boosting regional development. The use of new energy technology, including low-carbon technology, offers an opportunity to stimulate business and ensure the sustainable development of Poland’s regions and the economy as a whole.

On the basis of the outcomes of the research we can say that Poland has proven itself as a very attractive economy for hosting foreign investors. Moreover, Polish regions have a potential for growth and development through improvement of their attractiveness to investors. Econometric research shows that, as an aggregate, Poland can expect an increasing inward activity from foreign investors, both in terms of numbers of firms and amount of funding. This conclusion carries over to most of the regions as well, as the number of foreign investors in them is forecasted to increase. Due to the importance of FDI inflows and their positive impact on the host region, policymakers should pay very close attention to creating a favourable environment (e.g., aid in administrative tasks) for those interested in launching an FDI undertaking in Poland.

Summing up, the new regional approach of the Cohesion Policy in various fields should ensure that the specificities, needs and possibilities of regions in the EU will be taken into consideration for the period of 2014–2020. The new paradigm of the regional policy and its instruments, which will be gradually implemented in the EU and its Member States, should strengthen the focus on the location attractiveness of regions. It seems that endogenous determinants of location attractiveness may have the biggest impact on the investment decisions of entrepreneurs within the EU. It is worth underlining that the final impact of the Cohesion Policy of the EU depends on a good co-ordination process and the precise targeting of public interventions in order to address identified market failures. Thus all public interventions in the economy should be accompanied by effective evaluation systems in order to fully realize the ‘evidence based policy’ concept.

Moreover, the priorities, rules or instruments in almost all fields of the Cohesion Policy of the European Union are being changed, due to the adjustment to Europe 2020 strategy. This can be difficult and costly for some Member States (including Poland), which need to continue their current efforts to strengthen their economic position and competitiveness in the world during and after the crisis period. Thus one of the main goals of many Member States (and not only the New Member States) is to attract new entrepreneurs to invest in their countries. Consequently, there is no doubt that implementation of the new rules will change the level of investment attractiveness of regions, including Polish regions.