The distributional characteristics of Interreg Transnational Programmes and their role in promoting regional cohesion

Interreg is an instrument of Cohesion Policy promoting cooperation among different organizations of Europe to tackle common challenges. Project funding within Interreg could become competitive, given the strong interest from numerous institutions in participating. This, in turn, may lead to disparities in the number of projects implemented across European regions. If participation is driven by factors such as the economic development level of regions, then the fundamental aim of Cohesion Policy—to reduce the gaps between developed and lagging regions—may not be well served by Interreg, as existing gaps may be exacerbated. Given this issue, the paper focuses on the 12 Interreg transnational programmes, which bring together regions from many different countries. The paper examines the distributional characteristics of these programmes using conventional statistical and network measures with data from the 2014–2020 programming period. It then develops a novel indicator of regional participation levels and constructs and empirically tests a framework for measuring the effect of various socioeconomic, geographical, and demographic factors on the participation levels of EU regions. The analysis reveals differences in the allocation patterns of projects among the programmes and shows that different types of networks are formed. Additionally, the instrument appears to benefit smaller and wealthier regions, which results in counteracting demographic inequalities but simultaneously augmenting economic ones. To address this challenge, the paper provides recommendations for management authorities to make the formation of partnerships more equitable. •Interreg Strand B Programmes present distinct project distribution patterns.•Project allocation in Interreg is more balanced that in Horizon 2020.•Regional participation in Interreg is positively related with GDP per capita.•Lagging regions fail to capitalize on the opportunities provided by Interreg.•Regional development quotas should be included in partnership formation.