ministry of regional development · of the country and of the european union. diagnosis ... in...

Ministry of Regional Development

Strategy for Socioeconomic Development of Eastern Poland until 2020

A revision

Warsaw, July 2013

ISBN: 978-83-7610-462-1

Publisher:Ministry of Regional Development2/4 Wspólna Street, 00-926 Warsawwww.mrr.gov.pl

Department of Supra-Regional ProgrammesPhone: (+48 22) 273 82 00Fax: (+48 22) 273 89 14e-mail: [email protected]

MINISTRY OF REGIONAL DEVELOPMENT

land's development

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Spis treści

INTRODUCTION. Justification for revising the Strategy for socioeconomic development of Eastern Poland until 2020, and key factors influencing such action . . . . . . . . . . . . . . . . . . . . . . . 7

SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

PROGRESS IN REVISING THE STRATEGY AND IN THE CONSULTATION PROCESS . . . . . . . . . . . . . . . 18

1. DEVELOPMENT POSITION OF EASTERN POLAND AGAINST THE BACKGROUND OF THE COUNTRY AND OF THE EUROPEAN UNION. DIAGNOSIS AND DEVELOPMENT TRENDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

1.1. Competitive position of the regions of Eastern Poland . . . . . . . . . . . . . . . . . . . . . . . . . . 24

1.2. Causes for weak development and competitive position of Eastern Poland. . . . . . . . . 27

1.3. Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

2. INNOVATION OF EASTERN POLAND MACRO-REGION – A DIAGNOSIS . . . . . . . . . . . . . . . . . . . 32

2.1. Potential of science and research sector in Eastern Poland. . . . . . . . . . . . . . . . . . . . . . . 352.1.1. Research and development activity and personnel . . . . . . . . . . . . . . . . . . . . . . . 352.1.2. Participation of science centres from Eastern Poland in cooperation

networks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 372.1.3. Development potentials of science and research centres . . . . . . . . . . . . . . . . . . 39

2.2. Innovation potential of business sector in Eastern Poland . . . . . . . . . . . . . . . . . . . . . . . 402.2.1. Expenditure and innovation activity of enterprises, and the level

of innovation commercialisation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 402.2.2. Barriers to innovation activity of enterprises in Eastern Poland . . . . . . . . . . . . . 422.2.3. Potentials: leading endogenous supra-regional economic specialisations . . . . . 43

2.3. Links between science and business, and cooperation under triple helix . . . . . . . . . . . 46

3. LABOUR RESOURCES IN EASTERN POLAND MACRO-REGION – A DIAGNOSIS . . . . . . . . . . . . . 48

3.1. The quality of labour resources and the situation on the labour market in Eastern Poland macro-region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 503.1.1. Professional activity of the population of Eastern Poland . . . . . . . . . . . . . . . . . . 503.1.2. Level of education of the population of Eastern Poland . . . . . . . . . . . . . . . . . . . . 513.1.3. Level of entrepreneurship in Eastern Poland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 523.1.4. Digital skills of the population of Eastern Poland . . . . . . . . . . . . . . . . . . . . . . . . . 53

3.2. Vulnerable groups on macro-regional labour market . . . . . . . . . . . . . . . . . . . . . . . . . . . 543.2.1. Long-term unemployed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 543.2.2. Young people . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 543.3.3. Graduates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 553.3.4. Persons aged 55+ and women . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

4. TRANSPORT AND ELECTRICITY INFRASTRUCTURE IN THE EASTERN POLAND MACRO-REGION – A DIAGNOSIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

4.1. External regional transport accessibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

4.2. Intra-regional accessibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

4.3. Electricity infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

5. SWOT ANALYSIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

6. EASTERN POLAND IN 2020 – STRATEGIC VISION, CHALLENGES, AND DEVELOPMENT OPPORTUNITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

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7. KEY OBJECTIVE AND STRATEGIC LINES OF ACTION FOR EASTERN POLAND . . . . . . . . . . . . . . . 73

7.1. Innovativeness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 747.1.1. Building permanent competitive advantages based on

leading endogenous, supra-regional economic specialisations . . . . . . . . . . . . . 747.1.2. Strengthening the potential of science and research sector . . . . . . . . . . . . . . . . 76

7.2. Labour resources and quality of human capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 777.2.1. Combating exclusion on macro-regional labour market . . . . . . . . . . . . . . . . . . . . 777.2.2. Enhancing potential of modern staff for knowledge-based economy . . . . . . . . . 79

7.3. Transport and electricity infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 807.3.1. Overcoming the barriers associated with peripheral location . . . . . . . . . . . . . . . 817.3.2. Enhancing internal cohesion of Eastern Poland . . . . . . . . . . . . . . . . . . . . . . . . . . . 82

7.3.3. Enhancing energy security of Eastern Poland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82

8. TABLE OF INDICATORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84

9. IMPLEMENTATION, MONITORING AND EVALUATION SYSTEM . . . . . . . . . . . . . . . . . . . . . . . . . 88

9.1. Implementation system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 889.1.1. Implementation of the Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 889.1.2. Territorial contract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 899.1.3. Strategy of use of European Funds by Poland . . . . . . . . . . . . . . . . . . . . . . . . . . . 909.1.4. Operational programmes co-financed from the EU funds under the

cohesion policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 909.1.5. Institutions engaged in the implementation of the Strategy . . . . . . . . . . . . . . . . 91

9.2. Monitoring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 919.2.1. Annual monitoring report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 929.2.2. Interim report on implementation of the Strategy . . . . . . . . . . . . . . . . . . . . . . . . 93

9.3. Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 939.3.1. Institutions engaged in the monitoring and evaluation process . . . . . . . . . . . . . 94

10. FINANCIAL FRAMEWORK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95

List of maps, figures and tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98

Expert reports prepared for the purpose of the revised Strategy for Socioeconomic Development of Eastern Poland until 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100

Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101

Web pages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105

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Dear Readers,

I am pleased to share with you an updated version of the Strategy for Socio-Economic Development of Eastern Poland until 2020. The update is a result of partner cooperation between the Ministry of Regional Development and authorities of five Eastern Poland voivodeships, supported by knowledge of the experts involved in the updating process. Our joint intention was to prepare a development strategy for Eastern Poland that would adequately identify its specific needs and potential, as well as key challenges and development opportunities of the macroregion. The strategy will constitute the basis for planning effective operational actions between 2014 and 2020.

Eastern Poland is a uniform macroregion whose economic development is the lowest in Poland and one of the poorest in the European Union. Its specific socio-economic situation, which is largely due to its history and peripheral location, makes it an area of particular interest to the state. It requires additional twofold actions to catch up on the one hand, and to reinforce development processes on the other. Such actions have already been implemented, for example the special supra-regional operational programme dedicated to Eastern Poland and subsidised by the EU cohesion policy. Yet, the scale of challenges faced by the macroregion makes it essential to continue and intensify public actions for the region, which would be based on the updated development strategy. It should be noted that these actions constitute an important element of the state development policy focused on building strong, competitive and innovative regions.

The way we conceive of a strategic vision for Eastern Poland and the best way to put it in practice is strongly influenced by several key principles. The major one is the selectivity of objectives and resulting thematic, financial and geographical concentration of actions identified in the Strategy, necessary for effective reinforcement of Poland’s internal potential and overcoming major development

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barriers. It is also very important to highlight Eastern Poland’s development potential on the basis of which the macroregion would build its competitive advantage successfully.

Eastern Poland has a unique opportunity for development. If we make good use of the opportunity, by 2020 Eastern Poland may become a macroregion that is developing dynamically and sustainably, which gradually and systematically improves its developmental and competitive position in Poland and in the European Union. A macroregion which, thanks to deeply rooted supra-regional economic specialisation, competes in Poland and abroad successfully, provides modern personnel for the knowledge-based economy, actively prevents social exclusion and brags high transport accessibility.

Making this vision work will require a number of actions in the field of innovation, labour resources and infrastructure. This Strategy is a menu of such actions, tailored to the specific needs of Eastern Poland. The actions will be implemented primarily through a wide range of EU cohesion policy instruments at the national level, e.g. through the second edition of the supra-regional programme for Eastern Poland, and at the regional level. Strategy provisions influence the operationalisation of development actions for Eastern Poland to a considerable extent by reinforcing the territorial dimension of the development policy and by contributing to consolidation of supra-regional cooperation through common undertakings.

I believe that actions for Eastern Poland taken in the framework of Strategy implementation would contribute to making development processes in the macroregion sustainably dynamic, to reinforcing its competitiveness and appeal and, consequently, to fostering prosperity of its residents and improving the quality of their lives.

Elżbieta Bieńkowska

Minister of Regional Development

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INTRODUCTIONJustification for revising the Strategy for socioeconomic development of Eastern Poland until 2020, and key factors influencing such action

Eastern Poland macro-region constitutes a spatially compact area with the lowest level of economic development in Poland, and one of the lowest in the European Union. The problems that negatively affect the socioeconomic situation and development perspectives of this macro-region are primarily of a structural nature, being a consequence of historical circumstances. Such problems are further negatively reinforced by the effects of peripheral location of the macro-region on the external border of the European Union, across which even less developed areas prevail.

Basic characteristics of Eastern Poland macro-region1

Eastern Poland macro-region consists of five voivodeships: • Lubelskie, • Podkarpackie,• Podlaskie, • Świętokrzyskie,• Warmińsko-Mazurskie. The eastern border of the macro-region is at the same time the border of Poland, the European Union (EU) and the Schengen area. The macro-region borders five countries – in the north Russia and Lithuania, in the east – Belarus, in the south-east – Ukraine, and in the south – Slovakia2, which makes its territory a transit area. Eastern Poland covers 31.7% of the total area of Poland and is inhabited by over 8 million people, representing 21% of the country’s population. Macro-region is a low population density area – with only 86 persons per square kilometre against the national average of 122. Eastern Poland voivodeships are characterised by low levels of environmental degradation, which is manifested by relatively few areas degraded by industry, and comparatively low air pollution. Macro-region has a large quantity and quality potential of agricultural land – nearly 31% of domestic agricultural resources are situated there and account for almost a half of its total area.

1 All data presented in the box come from 2010.2 According to the data of Central Statistical Office, the European Union’s external border in Poland is 1,163 km long, which equals to 33% of the state border of the country. The longest section is the border with Ukraine – 535 km (46%), a slightly shorter one with Belarus – 418 km (36%), and the shortest with the Russian Federation (the Kaliningrad Oblast) – 210 km (18%).

Map 1: Eastern Poland macro-region

Source: www.outsourcingportal.pl

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Eastern Poland is marked by a low level of urbanization. On average, 61% of population of Poland live in towns and cities, whereas in this macro-region this indicator is running at about 49%. The low urbanization level of the analysed area reflects the sparse network and size structure of towns/cities. The average area of towns/cities in the macro-region is 472 km2, whereas the national average is 346 km2. In Eastern Poland, there are only three cities with over 200,000 inhabitants (Lublin, Białystok, Kielce), and three towns having population between 100,000 and 200,000. Very small towns, up to 5,000 inhabitants, are prevailing. The average population of towns/cities in Eastern Poland voivodeships is by around one fourth lower than the national average (25,800).

Due to its specific socioeconomic standing, Eastern Poland is an area of major concern for regional policy, which requires additional measures enabling economic catching-up and more dynamic development. If successfully implemented, such measures will enhance social, economic and spatial cohesion of the entire country. Such an approach to the macro-region was reflected in the Council of Ministers’ adoption, in 2008, of the Strategy for Socioeconomic Development of Eastern Poland until 2020 – the first and, thus far, the only government strategy of this kind addressing a group of voivodeships. Furthermore, under the EU multiannual financial framework for 2007–2013, the macro-region is a beneficiary of special, targeted supra-regional support in the form of Operational Programme Development of Eastern Poland 2007–20133, and it has thus become an important beneficiary of the European cohesion policy. However, the nature and scale of challenges facing Eastern Poland in the context of changing national, European and global circumstances, have resulted in a need to continue and intensify public action, aimed at effective use of internal capacities of the macro-region and at overcoming barriers that hinder and slow down its development.

The Development Strategy for Eastern Poland, while adequately identifying the key development challenges facing the macro-region and the ways of addressing them, should also be set in the context of national and European circumstances, so that it could constitute the grounds for planning effective operational measures. Since December 2008, when the Strategy of Socioeconomic Development of Eastern Poland until 2020 was adopted, the national and European circumstances have changed significantly due to the adoption of new EU and national strategic documents, determining the directions of development measures until 2020 or even until 2030 (the EU strategy “Europe 2020”, National Strategy of Regional Development 2010–2020, National Spatial Development Concept 2030, mid-term National Development Strategy 2020 and Long-term National Development Strategy 2030), and responding to changing development circumstances, including the economic slowdown that has hit Europe.

Seeking to achieve effective and sustainable growth in development dynamics in Eastern Poland, the Ministry of Regional Development and the governments of

3 More information on the programme is available on www.polskawschodnia.gov.pl.

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Introduction

Eastern Poland voivodeships have undertaken a joint initiative to revise the government Strategy for Socioeconomic Development of Eastern Poland until 2020, which resulted in the Minister of Regional Development and Marshals of Eastern Poland voivodeships signing, in June 2011, a joint declaration4 on the issue. All parties concerned wished to account in the revised document for the most important features of the European cohesion policy and the national policy, including those of a formal and legal nature5, by relating them to the specific character of development challenges and opportunities facing the macro-region. The way of thinking about a mid-term strategic vision for Eastern Poland and about the optimum approach to its implementation was determined by adopting, in the declaration, several key principles, organising and directing the process of revising the Strategy, including:

1) Principle of partnership and cooperation;

2) Subsidiarity principle;

3) Principle of selectivity of objectives and thematic, geographical and financial concentration of measures along with support for endogenous potential;

4) Principle of measurability of strategic objectives;

5) Principle of multi-level management.

From the very beginning, the Ministry of Regional Development cooperated closely and in full partnership with governments of Eastern Poland voivodeships in drafting the revised Strategy. The final scope and contents of the Strategy have resulted from joint discussion and agreement of the parties concerned.

The revised Strategy fills in the gap between a universal, horizontal policy for all Polish regions, as formulated in the National Strategy of Regional Development 2010–2020, and development policies for individual regions of Eastern Poland, as expressed in Voivodeship Development Strategies. The revised Strategy addresses the need to identify an additional, macro-regional level of developmental needs and objectives until 2020, complementing national6 and regional development strategies. Selectivity of objectives and the resulting thematic, financial and geographical concentration of activities identified in the macro-regional Strategy will make it possible to reach critical mass necessary for effective strengthening

4 The full text of declaration is available on: http://www.mrr.gov.pl/rozwoj_regionalny/Polityka_regionalna/Strategia_rozwoju_polski_wschodniej_do_2020 5 Act of 6 December 2006 on the principles of development policy (Dz. U. [Journal of Laws] of 2009, No 84, item 712, as amended) and Guidelines to the system of Polish development management adopted by the Council of Ministers in April 2009.6 Long-term National Development Strategy 2030 (LTNDS 2030), National Spatial Development Concept 2030 (NPDC 2030), National Development Strategy 2020 (NDS 2020), National Strategy of Regional Development 2010-2020 (NSRD 2010-2020) and the remaining eight integrated development strategies (Strategy for Innovative and Efficient Economy, Transport Development Strategy, Human Capital Development Strategy, Social Capital Development Strategy, Strategy for Energy Security and the Environment, Efficient State Strategy, Strategy for Development of the National Security System, Strategy for Sustainable Development of Rural Areas, Agriculture and Fisheries).

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of endogenous potential of Eastern Poland and for overcoming major barriers to development by implementing integrated and coordinated undertakings. The measurability of strategic objectives will make it possible to monitor the effectiveness of implemented activities, and it will allow for their correction, if required. On the other hand, implementing the Strategy in line with the principle of multi-level management will contribute to reaching the necessary complementarity of undertaken development initiatives, and to strengthening of the synergy effect.

The efforts to revise the Strategy of Socioeconomic Development of Eastern Poland until 2020 were systematically supported by the expert community: the leading expert Paweł Samecki, Ph.D., and thematic experts. Their role was to provide expertise on the processes taking place in the Eastern Poland macro-region against the background of analogous phenomena occurring all over Poland and throughout the European Union7, and to ensure logical cohesion and methodological correctness of the work conducted.

Another extremely important element was the active involvement of representatives of Eastern Poland voivodeship governments8, who participated in the revision process all along, and who, by providing their expertise on the specific nature and context of socioeconomic and spatial phenomena occurring in individual regions of Eastern Poland, largely contributed to improving the quality of the final document.

The process of revising the document was also accompanied by a public information campaign, whereas social and economic partners played an active role by providing opinions and consulting the draft revised Strategy.

European and national specificities in the context of revising the Strategy for Socioeconomic Development of Eastern Poland until 2020

An important change in the context of programming the development policy of Poland was the adoption of EUROPE 2020. A strategy for smart, sustainable and inclusive growth9 – by the European Council, in June 2010. The document sets out the framework for development processes for the entire EU and constitutes the new, long-term programme of socioeconomic development of the Community, replacing the Lisbon Strategy in force in 2000–2010. The Europe 2020 strategy outlines three development priorities, namely:

1) Smart growth – understood as developing an economy based on knowledge and innovation,

7 All expert reports prepared for the purpose of revising the Strategy are available on: http://www.mrr.gov.pl/ /rozwoj_regionalny/Polityka_regionalna/Strategia_rozwoju_polski_wschodniej_do_2020. 8 Detailed information on the cooperation with representatives of Eastern Poland local government authorities under the Strategy revision process are included in Annex 1.9 The full text of Europe 2020 strategy is available on: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do? uri=COM:2010:2020:FIN:EN:PDF

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Introduction

2) Sustainable growth (promoting a more resource efficient, greener and more competitive economy), and

3) Inclusive growth (increasing rate of employment, improving qualifications, and combating poverty).

The Communication from the European Commission on EU budget review of June 201110 presents the cohesion policy as a policy of a development nature which contributes to economic growth and to structural reforms in all EU regions, and which proposes thematic concentration of the cohesion policy on selected priorities related to the implementation of Europe 2020 strategy objectives. From Poland’s perspective the European cohesion policy is extremely significant, given its role as an important source of investments supporting structural changes in Polish economy and strengthening the development processes at the level of regions. Thus, it was necessary to make the strategic dimensions of measures for Eastern Poland a part of wider development objectives specified in the Europe 2020 strategy.

National circumstances have also changed profoundly as a result of the adoption by the Council of Ministers, in 2009, of a new Poland’s Development Policy Management System11. Designing the system was motivated by the intention to create an efficient mechanism for strategic programming, ensuring the achievement of key national development objectives. This became possible through strengthening the role of development policy as the one superior to all sectoral, thematic and regional policies, and through introducing a new generation of hierarchic long and mid-term strategic documents integrating social, economic and spatial dimensions of development measures. As a consequence of adopting the new system, the catalogue of binding strategic documents was organised and their number reduced. In autumn 2012, the Council of Ministers adopted the mid-term National Development Strategy 2020, and in February 2013 – the Long-term National Development Strategy. Moreover, nine integrated development strategies were successively adopted, and they replaced former sectoral strategies.

The Long-term National Development Strategy. Poland 2030 – Third Wave of Modernisation12 (LTNDS 2030) formulates the long-term civilisation project to be implemented in Poland until 2030, and it indicates the development model to be pursued by the country. The strategic objective is to improve the living standard of Poles, measured by increased GDP per capita, greater social cohesion, and lower territorial inequalities. The proposed development model is based on three basic pillars:

10 The text of the Communication is available on: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=SPLIT_COM:2011:0500(01):FIN:EN:PDF. 11 Guidelines to the system of Polish development management adopted by the Council of Ministers on 27 April 2009, Ministry of Regional Development, Warsaw 2009, and the Act of 6 December 2006 on the principles of development policy (Dz. U. of 2009, No 84, item 712, as amended). 12 The full text of LTNDS 2030, as adopted by the Council of Ministries, is available on: https://mac.gov.pl/wp-content/uploads/2013/02/Strategia-DSRK-PL2030-RM.pdf

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1. Creating the grounds for country’s innovativeness (bridging the civilisation gap through infrastructural and modernisation measures, related to building new competitive advantages, based on intellectual capital in its broad meaning);

2. Establishing territorial balance in development (creating conditions for promotion and dissemination of development benefits from “growth poles”, i.e. mainly cities, and stimulating development potentials of other areas – regional and local centres, rural areas);

3. Solidarity between generations (a package of measures addressing changes in social lifestyles and challenges related to demographic trends).

In LTNDS 2030, a lot of attention is devoted to development geography and to challenges related to decreasing the differences in the quality of life and in growth potential between individual parts of the country, which constitutes the key task of the state until 2030. In this context, it is pointed out that while planning development measures, it is necessary to pay special attention to the situation in Eastern Poland, where the observed underdevelopment hampers the potential of this area in the greatest extent.

The second document in the hierarchy of strategic documents is the mid-term National Development Strategy 202013 (NDS 2020), which apart from referring to the key guidelines formulated in LTNDS 2030, identifies the strategic areas and interventions necessary to achieve development objectives until 2020. A particular emphasis was placed on measures aimed to strengthen regional potentials which are most promising in the context of ensuring stability of the development effect. Therefore, NDS 2020 does not focus on the entire scope of state’s activities taken in all areas of its functioning, but on the selected ones. Three strategic objectives – efficient and effective state, competitive economy, and social and territorial cohesion – constitute a response to identified development challenges. The key task of the state is to ensure internal cohesion of the country, allowing all regions to participate in development and preventing excessive spatial diversity. Eastern Poland was identified – besides peripheral rural areas, border areas and areas losing their previous socioeconomic functions – as the area where marginalisation processes are concentrated, and which calls for targeted action aimed at strengthening the diffusion mechanisms and reinforcing spatial integration.

Another key document for creating the strategic development vision for Eastern Poland is one of integrated development strategies adopted by the Council of Ministers in 2010, namely the National Strategy for Regional Development 2010–2020: Regions, Cities, Rural Areas14 (NSRD 2020), introducing a new way of thinking

13 The full text of NDS 2020 is available on: http://www.mrr.gov.pl/rozwoj_regionalny/Polityka_rozwoju/SRK_2020/Documents/SRK_2020_112012_1.pdf. 14 The full text of NSRD 2020 is available on: http://www.mrr.gov.pl/aktualnosci/polityka_rozwoju/Documents/KSRR_13_07_2010.pdf.

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Introduction

about regional policy in Poland15. The document sets three principal objectives, also with respect to urban and rural areas, and indicates the instruments for their implementation. One of the objectives – in addition to supporting increase in competitiveness of all Polish regions and enhancing effectiveness of development activities – is building territorial cohesion and preventing marginalisation processes occurring in the problem areas identified in NSRD 2020, which are characterised by low development potential due to the accumulation of negative socioeconomic phenomena. Given the diagnosed development challenges, a typology of problem areas (strategic intervention of the regional policy) has been established, which are expected to be the target of specific interventions aimed to boost restructuring processes and increase the quality of life for inhabitants. Due to the observed significant underdevelopment as compared to the rest of the country16, Eastern Poland macro-region has been identified as the only problem area of national importance in Poland which should be subject to targeted development intervention, carried out by means of specific, additional support from the central level.

A significant new factor was also the National Spatial Development Concept 203017 (NSDC 2030) adopted by the Council of Ministers in December 2011, which is the most important strategic document on spatial development of Poland. The document correlates spatial policy objectives with regional policy objectives, putting an end to the dichotomy of spatial and socioeconomic planning observed so far. In line with the integrated approach to development as adopted in NSDC 2030, the territory of the country is perceived as an area where socioeconomic, environmental and cultural processes have diverse course and effects, whereas the proposed development vision emphasises the importance of spatial characteristics for an optimal use of endogenous potential. The objective of spatial development policy is to exploit effectively the potential of the entire territory of Poland to achieve the development objectives, in line with the assumption of territorial balancing of national development. Moreover, NSDC 2030 identifies areas requiring specific support for development processes, given their low development potential and insufficient spatial integration with the rest of the country which negatively affects their development perspectives. Eastern Poland has been indicated as one of three areas of this type requiring coordinated intervention that would strengthen its spatial cohesion and endogenous potentials, and would be implemented based on a macro-regional strategy.

15 The new paradigm of regional development provides for boosting development processes occurring in individual regions and increasing their competitiveness by territorial diversification and integrated approach to supporting regional endogenous potentials. For more information see: NSRD 2020, pp. 14-17.16 As measured by GDP per capita.17 NSDC is currently the only government planning document; the final shape of national spatial development planning will be determined by the reform of the spatial planning system in Poland envisaged in the provisions of NSDC 2030 and in Article 61 of the Act of 13 July 2012 amending the Act on government administration departments and certain other acts (Dz. U. of 2012, item 951) and Article 47a of the Act of 27 March 2003 on spatial planning and management (Dz. U. of 2012, item 647, as amended). The full text of NSDC 2030 is available on: http://www.mrr.gov.pl/rozwoj_regionalny/Polityka_przestrzenna/KPZK/Aktualnosci/Documents/KPZK2030.pdf

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SUMMARY

Eastern Poland macro-region, comprising Lubelskie, Podkarpackie, Podlaskie, Świętokrzyskie and Warmińsko-Mazurskie Voivodeships, is one of the least economically developed and least competitive regions in Poland and in the European Union. In the years 2002–2009, its share in GDP of Poland kept decreasing, and this trend – additionally perpetuated by unfavourable demographic forecasts of further reduction of labour resources – will continue until 2020, unless some effective measures are taken, aimed at improving the development dynamics in the area. Taking into account the expected slower pace of development of the EU countries in 2009–2020, it is forecasted that the macro-region will reduce the developmental gap in relation to the EU average, yet the value of GDP per capita in the macro-region will remain nearly two times lower than the EU-27 average.

Due to its specific socioeconomic situation, Eastern Poland is an area of major concern for regional policy, as reflected in the adoption, in 2008, of governmental Strategy for Socioeconomic Development of Eastern Poland until 2020 – the first and – so far – the only strategy of this kind addressed to a group of voivodeships, as well as in covering the macro-region with a special, targeted, supra-regional Operational Programme Development of Eastern Poland 2007–2013, co-financed from the EU cohesion policy funds. The nature and the scope of challenges facing Eastern Poland require further development activities in the context of new national, European and global challenges under a new development paradigm presented e.g. in the Europe 2020 strategy. As a result of an agreement concluded in 2011 between the Minister for Regional Development and the Marshalls of Eastern Poland Voivodeships it was decided that the strategic document should be thoroughly revised - in partnership and close cooperation with the governments of Eastern Poland voivodeships, and with significant support from experts - so that it could serve as a basis for planning effective operational measures until 2020.

The revised Strategy addresses the need to identify an additional, macro-regional level of developmental needs and objectives, complementary with national and regional development strategies. Selectivity of objectives and the resulting thematic, financial and geographical concentration of activities identified in the macro-regional Strategy will make it possible to reach critical mass necessary for effective strengthening of endogenous potential of Eastern Poland, allowing to overcome key barriers to development by implementing integrated and coordinated projects. Measurability of strategic objectives will make it possible to monitor the effectiveness of carried out activities and allow for their possible correction. On the other hand, implementing the Strategy in line with the principle of multi-level

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management will contribute to reaching the necessary complementarity of undertaken development initiatives and to strengthening the synergy effect.

The analyses carried out for the purposes of revising the Strategy indicate that two main factors largely responsible for the size of developmental gap between Eastern Poland and more developed regions in the country and in the EU-27 are: low labour productivity and unused labour resources. The low labour productivity stems from the specific nature of the economies of macro-region’s voivodeships as well as from the low productivity of individual sectors, which remains below the national average. In comparison to the rest of the country, Eastern Poland macro-region is characterised by a very high level of concentration of labour resources in the agricultural sector, characterised by much lower labour productivity than in other economy sectors. Lower labour productivity in individual sectors of the economy is, in turn, a consequence of the fact that Eastern Poland voivodeships, compared to other Polish voivodeships, are poorly equipped with key regional assets, i.e. technological and innovative potential, quality of labour resources, and availability of infrastructure.

Identifying barriers and potentials in the three areas indicated above constituted the basis for formulating a vision of development, focusing on three development opportunities which - if made good use of - could contribute to increasing labour productivity and to improving the macro-region’s developmental standing in the mid-term. The first development opportunity consists in increasing the level of innovativeness of macro-regional economy, based on established, leading economic specialisations, and at the same time strengthening the potential of science and research sector to create applicable innovative solutions and improving the capacity of enterprises sector to absorb such solutions and to use them for commercial purposes. The second opportunity lies in activating labour resources and in improving the quality of human capital, which will foster social inclusion, especially with regard to vulnerable groups, and to systematic raising and strengthening of staff skills and competences, allowing employees to work effectively within the knowledge-based economy, and to generate additional development impetus. The third opportunity for increasing the dynamics of development processes in Eastern Poland consists in establishing strong socioeconomic links with better developed environment. To create such links it is essential to have in place effective infrastructure of communication links, both external – with national growth poles – and internal, strengthening territorial cohesion of the macro-region. Development of transport and electricity infrastructure, accompanying the intensification of development processes and the strengthening of human capital, is a necessary measure contributing to the achievement of these objectives. The above-mentioned opportunities became the basis for determining strategic lines of actions.

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Summary

Coordinated implementation of integrated activities, proposed in the Strategy in the form of a “menu”, and addressing the barriers to development and development opportunities identified within three strategic areas: INNOVATION – LABOUR RESOURCES – INFRASTRUCTURE will contribute in the long term to higher labour productivity in all sectors of the economy and to changing the structure of employment (gradual decrease of employment in agriculture, accompanied by an increase of employment in other sectors of the economy), which, in turn, will result in the growth of income of the macro-region’s population. As a result, the dynamics of the processes of restructuring of macro-regional economies will be improved. These activities, based on endogenous determinants and compliant with the model of development promoted in strategic EU and national documents, will also have a positive impact on reversing unfavourable trends related to migratory outflow of population from the macro-region, and will enhance the attractiveness of Eastern Poland for investors. As a result of implementing such activities, in 2020 Eastern Poland will be a macro-region which is developing dynamically in compliance with the principle of sustainable development, and is gradually and systematically improving its developmental and competitive position in the country and in the European Union. The macro-region, thanks to its supra-regional economic specialisations, will be able to compete effectively in Poland and abroad, and will have at its disposal modern staff prepared to function in the knowledge-based economy. It will effectively combat social exclusion and will become an easily accessible area, characterised by internal territorial cohesion.

The Strategy implementation system is based on institutions and mechanisms established for the purpose of managing national development policy, in particular for the purpose of managing the EU funds earmarked for the implementation of cohesion policy in 2014–2020. The Strategy is implemented through operational EU cohesion policy programmes. The territorial contract, negotiated between representatives of central and local government18, is the key element, enabling transition from the level of Strategy to the level of programming. Projects implemented for the purpose of achieving the objectives of the Strategy will be financed from the European Union funds, the state budget and the funds of voivodeship, poviat and gmina governments (under co-financing and own contribution to projects), other sources of public funding (e.g. targeted funds) and private funding (beneficiaries’ own contribution to projects). The implementation of the Strategy is subject to monitoring and evaluation in order to increase the effectiveness and efficiency of activities undertaken for the purpose of achieving its objectives.

18 In line with the NSRD 2020 the territorial contract “covers priority projects, understood as the most important projects from the point of view of the central government and governments of the relevant voivodeships, which comply with the areas of strategic intervention, are significant for the development of the territory on which a given intervention is carried out and contribute to the achievement of regional policy goals agreed between the central and local government during the contract negotiations” (NSRD 2020, chapter 7.3.3.).

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PROGRESS IN REVISING THE STRATEGY AND IN THE CONSULTATION PROCESS

Involvement of governments of Eastern Poland voivodeships and of representatives of experts’ circles in the process of revising the Strategy

Efforts to revise the Strategy were undertaken by the working group consisting of representatives of the Ministry of Regional Development, representatives of Marshall Offices of Eastern Poland voivodeships designated by Marshalls, and a leading expert. During 9 workshop meetings, attended also by experts supporting the revision of the Strategy in selected thematic areas, expert reports commissioned for the purpose of Strategy revision were presented19, and drafts of individual parts of the Strategy were discussed. The comments of representatives of voivodeship governments had a significant impact on the shape of the revised document, improving its quality and embedding its diagnostic and operational part in the socioeconomic specificity of the macro-region.

In addition, the draft Strategy was presented and discussed during three meetings of the Eastern Poland Commission of the Association of Voivodeships of the Republic of Poland, and comments and proposals voiced by the members of this Commission were taken into account in the course of relevant work. Draft Strategy was also the subject of consultations by the Joint Commission of the Government and Local Government and it was positively assessed.

Ex ante evaluation of the draft revised Strategy

Between November 2012 and February 2013, the draft revised Strategy underwent a comprehensive ex ante evaluation, commissioned by the MRD and carried out by ECORYS Polska sp. z o.o. As a result of this analysis, the evaluator presented a proposal of a system of monitoring and evaluation of the Strategy, as well as a number of recommendations related to the assessed document. The final report from the evaluation, together with a table of recommendations, was the subject of a separate meeting with the representatives of Marshal Offices.

The majority of recommendations were adopted, and their inclusion in the text of the Strategy resulted primarily in:

19 A full list of expert’s reports commissioned by the MRD for the purpose of updating the Strategy for Socioeconomic Development of Eastern Poland until 2020 is available at: http://www.mrr.gov.pl/rozwoj_regionalny/polityka_regionalna/strategia_rozwoju_polski_wschodniej_do_2020/dokumenty/strony/dokumenty_i_ekspertyzy.aspx.

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Progress in revising the strategy and in the consultation process

rewording of the document to improve its clarity and comprehensibility (greater emphasis on the logic of the approach adopted in the draft revised Strategy, including in particular issues related to selectivity of objectives and concentration of activities);

strengthening the justification of the selection of three strategic lines of action (innovation, labour resources, availability), including broader use of national and foreign literature on the subject;

supplementing the diagnostic part (e.g. with regard to clusters in Eastern Poland) and ensuring its compatibility with the financial framework;

clarification of the provisions related to the Strategy implementation system (e.g. preparing a list of operational programmes and indicating to what extent they will contribute to implementing individual strategic lines of action presented in the Strategy);

the system of monitoring and evaluation proposed by the evaluator was also included in the draft Strategy (along with a table of monitoring indicators and approximate target values).

Recommendations that were not taken into account concerned primarily the extension of thematic scope of the Strategy with new areas (e.g. cross-border issues, agriculture, family policy), which, on the one hand, stood in contradiction to the compromise agreed upon in this regard with Eastern Poland voivodeships, and, on the other hand, infringed the principle of selectivity of objectives and concentration of activities, adopted during the revision efforts.

Opinion of General Directorate for Environmental Protection on the strategic environmental impact assessment of the draft revised Strategy

The draft revised Strategy was also consulted with the General Directorate for Environmental Protection (GDEP) in order to determine whether it was necessary to carry out a strategic environmental impact assessment pursuant to the Act of 3 October 2008 on the provision of information on the environment and its protection, public participation in environmental protection and environmental impact assessments20. On 10 April 2013, GDEP issued a decision not to carry out the strategic environmental impact assessment, claiming that the probability of the provisions of revised Strategy having a significant impact on the environment was very small. In addition, GDEP pointed out that some of the actions provided for in the revised document were compliant with the provisions of the Strategy for Socioeconomic Development of Eastern Poland until 2020 in its version adopted by the Council of Ministers in December 2008, for which a strategic environmental

20 Dz. U. of 2008, No, 199, item 1227, as amended.

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impact assessment had already been carried out21 and the findings of this assessment remained valid. On the other hand, the new actions provided for in the revised Strategy were compliant with the provisions of higher rank strategic documents, which had already been subject to environmental assessment. The fact that operational programmes under the EU cohesion policy, indicated in the Strategy as the main instruments to achieve development objectives set therein, will also be subject to this assessment after meeting specific eligibility criteria, constituted an additional argument for waiving the obligation to carry out the assessment. In light of the above, GDEP has concluded that no risk exists of any action which could have a potentially significant impact on the environment not undergoing environmental assessment.

Inter-ministerial consultations on the draft revised Strategy

Inter-ministerial consultations on the draft revised Strategy were conducted on 12 - 29 April 2013. During the consultations, 12 ministries and the Central Statistical Office, which carried out a broad update of statistical data used in the diagnostic part of the Strategy, submitted their comments and proposals. MRD took the vast majority of presented comments (116 out of a total number of 123) into account, which concerned primarily:

the need to clarify the provisions on the competitive position of Eastern Poland, and to describe in more detail the method used to identify factors responsible for the gap between the macro-region and better developed regions in the country and in the EU (decomposition of GVA per capita);

the need to update and broaden the description of socioeconomic phenomena in the diagnostic part (especially in the following areas: labour resources and the quality of human capital, as well as transport and electricity infrastructure);

the need to clarify the provisions in the operational part of the Strategy;

the need to better link the Strategy with the provisions of integrated development strategies;

the need to verify approximate target values of monitoring indicators of the Strategy and to extend their set in the area of communications accessibility and electricity infrastructure.

The draft Strategy was also consulted with the Government Legislation Centre, which led to further clarification of the provisions related to the Strategy implementation system.

21 The full text of the Forecast of environmental impact of the draft Strategy for Socioeconomic Development of Eastern Poland until 2020 commissioned by the MRD for the purpose of drafting the Strategy in 2008 is available at: http://www.mrr.gov.pl/rozwoj_regionalny/poziom_regionalny/strategia_rozwoju_polski_wschodniej_do_2020/ /Documents/Prognoza_POS_do_Strategii_PW.pdf.

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Public consultation on the draft revised Strategy

Public consultation on the draft revised Strategy was organised and supervised by the Ministry of Regional Development, pursuant to Article 6 of the Act of 6 December 2006 on the principles of development policy. The consultation, which took place between 10 April - 15 May 2013, was conducted on the national and regional level, and it was fully documented. Consultation was carried out in accordance with the principle of transparency, which aims at ensuring the greatest possible freedom of access to documents and data. Consultation was public and was compliant with the principle of equality and openness. Every interested person could access information about the consultation and participate in it. Each person and institution which took part in the consultation obtained feedback, consisting of a response from the Ministry of Regional Development to submitted comments. A table listing all the comments submitted and the MRD’s position regarding such comments was also made available on the MRD website22.

During the public consultation on the draft revised Strategy a total of 126 comments from 21 stakeholders were received; these stakeholders included natural persons (2) and institutional partners (19). The majority of comments were submitted by local government units representing the regions of Eastern Poland - at the level of gmina, poviat and voivodeship. Comments were also submitted by a regional development agency (1), an association (1), as well as local and regional tourist organisations (2). Comments to the draft were also submitted by Marshall Offices in two voivodeships outside of Eastern Poland, which may indicate that the document is of interest also for entities outside of the macro-region, and which reflects good dissemination of information concerning the consultation.

Comments submitted during the consultation can be classified into five basic categories:

1) proposals to extend the scope of the draft Strategy to cover new areas of activity;

2) proposals to clarify and/or strengthen the provisions already contained in the draft Strategy in order to better highlight the issues of key importance for the entity submitting the comments;

3) comments concerning the update and/or broadening the scope of statistical data used in the diagnostic part of the draft Strategy;

4) editorial comments;

5) comments related to the level of instruments used for the implementation of the Strategy or to systemic issues remaining outside of the MRD’s competences.

22 The table is available at: http://www.mrr.gov.pl/rozwoj_regionalny/polityka_regionalna/strategia_rozwoju_pol- ski_wschodniej_do_2020/konsultacje/strony/konsultacje.aspx.

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Several comments submitted during the public consultation provided a broader reflection on the issues related to pro-development activities in Eastern Poland and did not contain specific recommendations concerning the need to introduce possible changes in the draft Strategy.

After an analysis of all comments submitted during the Inter-ministerial consultation, the MRD decided to take a significant majority of them into account (categories 2, 3 and 4) by including new or correcting already existing provisions in the draft Strategy.

Due to their detailed, operational nature, comments concerning the support instruments for Eastern Poland (category 5) were forwarded to relevant MRD departments responsible for developing operational programmes to be implemented under the cohesion policy for 2014–2020, so that such comments could be considered and potentially accounted for at the level of operationalization of actions. On the other hand, comments of systemic nature (category 5) concerning issues outside the scope of the MRD’s competences were forwarded to appropriate ministries, along with a request to analyse them in terms of possibility of their implementation.

Comments concerning the inclusion of new areas of activity in the operational part of the draft Strategy (category 1) were not taken into account due to the lack of evidence-based arguments, which would justify the need to extend the catalogue presented in this document. The thematic scope of the draft revised Strategy has been established by applying the method of GVA per capita decomposition, and is a result of a compromise with the governments of Eastern Poland voivodeships. In accordance with the principle of selectivity of objectives and concentration of actions, the Strategy focuses on those lines of action which have the greatest potential to contribute to the improvement of macro-region’s competitive standing in the mid-term.

Summary of the draft revised Strategy consultation process

Draft revised Strategy was generally positively received by the consulted entities. The selective approach, which lies at the heart of this document and of its strategic vision focuses on the implementation of key activities in three strategic areas, utilising the internal capacity of the macro-region and being in line with the development paradigm adopted for Poland, was not questioned. Identifying major developmental challenges facing the macro-region for the purposes of drafting the Strategy and accounting for national and European circumstances was generally considered accurate and correct. The synthetic form of the Strategy, which facilitates its reception and complies with the principles of modern strategic planning, was also appreciated.

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Changes introduced in the draft Strategy as a result of broad public consultation contributed to improving its quality, integrity and clarity. The consultation also made it possible to gather several valuable comments and proposals, which may be used in the process of designing the support instruments for Eastern Poland voivodeships, thus contributing to the achievement of development objectives set out in the draft Strategy.

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1. DEVELOPMENT POSITION OF EASTERN POLAND AGAINST THE BACKGROUND OF THE COUNTRY AND OF THE EUROPEAN UNION. DIAGNOSIS AND DEVELOPMENT TRENDS

1.1. Competitive position of the regions of Eastern Poland

In the public discourse on spatial variations, the image of Eastern Poland as a region lagging behind the most developed regions in the European Union, prevails. Available data shows that such perception of the macro-region is justified. In 2010, a complex survey23 was prepared for the European Commission’s 5th Cohesion Report. Based upon the competitiveness index,24 the survey synthetically presented the competitive position of all 271 NUTS-225 regions in the EU-27.

Of all Polish regions the least competitive one was Warmińsko-Mazurskie Voivodeship, which – with index of 29 (on the scale from 0 to 100) – came 233rd among all analysed regions. Other voivodeships of Eastern Poland did not perform much better; their index values ranged from 31 (Świętokrzyskie) to 37 (Podkarpackie), which placed them, respectively, on 230th–211th positions.

23 Survey results are presented in two papers by the European Commission. 1) Annoni P., Kozowska K., EU regional competitiveness index (RCI) 2010, Joint Research Centre EC,:2) A New Regional Competitiveness Index: Theory, Methods and Findings, DG Regio Working Paper, 2/2011.24 The proposed index covers wide range of issues related to regional competitiveness, including i.a. factors concerning innovativeness and technological potentials, transport and communication infrastructure, health, education, and quality potential of institutions. The index allows for the intensity of phenomena which are important not only for enterprises, but also for the residents of a given region and which influence the quality of their life.25 Accounting also for the three Baltic states, Malta, Cyprus and Luxembourg, in case of which the whole country is one region of NUTS-2 level.

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Development position of eastern poland against the background of the country and of the european...

Map 2: Regional Competitiveness Index (2010)

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The competitive position of regions is strongly correlated with their development position, characterised by the size of the gross domestic product per capita (GDP): the lower the synthetic regional competitiveness level, the lower the level of development. In 2009, GDP per capita achieved in Eastern Poland macro-region amounted to merely 44% of the EU average.26 In 2002–2009, the distance between the macro-region and the EU-27 average decreased, i.a. due to slower development dynamics observed in the majority the EU countries, which indicates the on-going convergence process. However, all of the voivodeships of Eastern Poland remain among twenty poorest regions in the EU (NUTS-2).

26 The development position of Eastern Poland was determined on the basis of GDP per capita indices (taking into account purchasing power parity of individual national currencies) in relation to the national average and EU-27 average, source: Eurostat.

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Table 1: Gross domestic product per 1 resident by PPP, EU-27 = 10027

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%POLAND 48 49 51 51 52 54 56 61 62 14MAZOWIECKIE28 74 76 77 81 83 87 89 97 102 28LUBELSKIE 34 35 35 35 35 37 39 41 42 8PODKARPACKIE 34 35 35 36 35 37 39 42 42 8PODLASKIE 37 37 38 38 38 40 41 45 45 8ŚWIĘTOKRZYSKIE 37 38 39 38 39 42 45 47 47 10WARMIŃSKO-MAZURSKIE 37 39 39 39 39 40 42 45 46 9

Source: own calculations based on Eurostat data.

GDP generated in Poland in 2009 was 37% higher than in 2002,28 which in absolute values means an increase by PLN 302 billion. Real increase in GDP in Eastern Poland in that period was slightly lower, and amounted to over 32%. Compared to the average for Poland, the macro-region was deepening the development gap, so on the national level the process of ongoing divergence was observed.

In 2010, the macro-region’s share in generating national GDP amounted to 15.1%; this value was lower by 0.8 pp than in 2002. GDP projection29 shows that the current unfavourable trends will continue. If no effective actions are taken to make development processes more dynamic, by 2020 the macro-region will increase its development distance to national values in spite of the projected increase in GDP per capita in that period. The GDP of Eastern Poland will increase by 38% compared to 2009, achieving the level of almost PLN 282 billion,30 while only in Świętokrzyskie Voivodeship the dynamics of changes will be close to the speed of GDP increase, which, according to projections, will be experienced in the whole country (45.9%). As a result, in 2020 GDP of Eastern Poland will constitute 14.4% of national GDP, which means that the macro-region’s projected share in generating national GDP will decrease (by 0.8 pp). Taking into account the projected lower

27 Mazowieckie Voivodeship was singled out for comparison, to draw attention to that region’s position as an outlier, raising the national average.28 Taking into account the price movement, i.e. in prices for 2009.29 For the sake of analysis of future economic trends, the assumptions resulting from a moderate development scenario for Poland were taken: predicted annual GDP growth - 3,45%; predicted annual GDP per capita growth in the EU-27 at 2.0%; cf. Kusideł E., Lewandowska-Gwarda K., Ekspertyza dotycząca projekcji PKB per capita (wg PPS) na poziomie województw (NUTS-2) oraz wybranych podregionów (NUTS-3) do 2020 roku wraz z analizą konsekwencji ewentualnych zmian klasyfikacji NUTS dla polityki spójności po 2020 roku. Commissioned by the Ministry of Regional Development, 2012.30 Prices for 2009.

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development speed of EU countries in 2009–2020, the macro-region will decrease its development distance to the EU average, but GDP per capita of the macro-region will still be lower almost by half.

Figure 2: Projected GDP per capita values by PPS in relation to the EU-27

35%

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Source: Own calculations based on the expertise by Kusideł E., Lewandowska-Gwarda K., Ekspertyza dotycząca projekcji PKB per capita (wg PPS) na poziomie województw (NUTS-2) oraz wybranych podregionów (NUTS-3) do 2020 roku wraz z analizą konsekwencji ewentualnych zmian klasyfikacji NUTS dla polityki spójności po 2020 roku. Commissioned by the Ministry of Regional Development, 2012.

1.2. Causes for weak development and competitive position of Eastern Poland

Development and competitive position of the macro-region is caused by several interconnected factors, national (on-going economic crisis, national economic and financial policy) as well as regional (infrastructure, human capital etc.), which determine the functioning of macro-regional economy.

Decomposition method was used to identify the main sources of economic development of Eastern Poland (Spiezia, 2003).31 This method makes it possible to determine in a quantifiable way the influence of wide range of socioeconomic factors on regional differences in development level and its dynamics.

31 This method found practical application in many publications, i.a. in one of the flagship publications by OECD – Regions at a Glance 2009. Based on the analysis of causes for different productivity levels achieved by regions, decomposition makes it possible to answer the question why some regions are more competitive than other. See more: M. Lewandowski, Identyfikacja determinant rozwoju gospodarczego Polski Wschodniej przy zastosowaniu metody dekompozycji PKB. Expertise for the Ministry of Regional Development, 2011.

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In order to examine the influence of various variables of the development of individual regions, the main indicator is decomposed into factors such as labour productivity, characteristics of the job market and population structure. For the purpose of revising the Strategy for Socioeconomic Development of Eastern Poland until 2020, the statistical-comparative decomposition method was applied, using gross value added (GVA)32 per capita index, which demonstrates differences in development level between regions against the national average. Decomposition was conducted for 2002 and 2009,33 which made it possible to asses changes occurring over time. The results of conducted analyses show34 that low economic development level of regions of Eastern Poland is largely due to low labour productivity expressed in gross added value35 per 1 employee (in 2010, labour productivity ranged from 70% of the national average in Lubelskie Voivodeship to almost 88% in Warmińsko-Mazurskie Voivodeship) and unused labour resources.

Figure 3: Main factors explaining differences in GVA levels per 1 resident of Polish voivodeships in relation to national average in 2009.36

-50% -30% 10% 30%

ŁÓDZKIEMAZOWIECKIEMAŁOPOLSKIE

ŚLĄSKIELUBELSKIE

PODKARPACKIEPODLASKIE

ŚWIĘTOKRZYSKIE

LUBUSKIEWIELKOPOLSKIE

ZACHODNIOPOMORSKIEDOLNOŚLĄSKIE

OPOLSKIEKUJAWSKO-POMORSKIE

POMORSKIEWARMIŃSKO-MAZURSKIE

labour produc�vity

ou�low of popula�on related to employment

employment

economic ac�vity

popula�onage structure

50%-10%

Source: M. Lewandowski, Identyfikacja determinant rozwoju gospodarczego Polski Wschodniej przy zastosowaniu metody dekompozycji PKB. Expertise for the Ministry of Regional Development, 2011.

32 Gross value added plus taxes for products minus subsidies for products is gross domestic product.33 Choice of years analysed was determined by the availability and comparability of data at the time when the analysis was carried out. See more: M. Lewandowski, Identyfikacja determinant rozwoju gospodarczego Polski Wschodniej przy zastosowaniu metody dekompozycji PKB. Expertise for the Ministry of Regional Development, 2011.34 See more: M. Lewandowski, Identyfikacja determinant rozwoju gospodarczego Polski Wschodniej przy zastosowaniu metody dekompozycji PKB. Expertise for the Ministry of Regional Development, 2011.35 Gross domestic product – gross value added plus taxes for products minus subsidies for products.36 The figure ignores so-called approximation error. Factors covered by decomposition were defined in detail in the expertise commissioned for updating the Strategy (see more: M. Lewandowski, Identyfikacja determinant rozwoju gospodarczego Polski Wschodniej przy zastosowaniu metody dekompozycji PKB).

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Low labour productivity in Eastern Poland results both from specific sectoral characteristics of macro-regional economy (the so-called sector specialisation) and from lower than the national average productivity of individual sectors. Regions of Eastern Poland, apart from Warmińsko-Mazurskie Voivodeship,37 are characterised by high, compared to the country as a whole (22.5% against national average of 12.8%), deployment of labour resources in agricultural sector38, characterised by much lower labour productivity than other sectors of the economy. To compare, in the European Union this index was at the average level of 5.4%.39 At the same time, the data show lower than national average involvement of labour resources in industry (respectively, 18.7% and 22.1%); construction (7.5% and 8.1%); market services (24.2% and 28.0%), and other services (27.1% and 28.9%). In 2010, agriculture (together with forestry, hunting and fishery) in the macro-region was by 28.5% less productive than the national average, although the situation within the macro-region itself is highly diversified (in Warmińsko-Mazurskie and Podlaskie Voivodeships labour productivity in this sector was much higher than the national average, while in other voivodeships it did not exceed 64% of the national average). Among other sectors of economy, labour productivity level in industry was lower by 17.1% than national average (in industrial processing – by 15.8%), in construction – by 7.7%, in trade, car repair, transport and warehouse management, accommodation and gastronomy, information and communication – by 10%, in finance and insurance activity – by 7%, and in other services – by 11.8%.

The real increase in average efficiency of regional economies in Eastern Poland (by Ľ) in 2002–2009 was, above all, a result of individual growth dynamics of particular sectors, while cross-sectoral changes in employment, especially deployment from the agricultural sector to more efficient sectors of economy, contributed to it only to a small extent (apart from Warmińsko-Mazurskie Voivodeship). The structure of employees, showing sectoral specialisation in individual economies in the macro-region, hardly changed in the studied period, and it remains specific and different from those in other regions of the country, mostly due to a high share of employees in agricultural sector. This remains the main cause of the development gap between Eastern Poland and better developed regions of Poland and of the EU.

37 Lower share of agricultural sector employees in the Warmińsko-Mazurskie Voivodeship results from historical agrarian structure in the region. Almost 1/5 of land used for agriculture was owned by public and private legal persons, and size structure of farms was better than the average in Poland (less small farms, more large ones). The voivodeship is characterised by profitable relations of the agriculture employees to the economic effects. However, at the same time lower economic activity than in the whole country and less use of labour resources were observed. 38 Thorough analysis of the situation in the agricultural sector (i.a. structure of farms, capital resources, production potential) in the regional arrangement together with objectives of strategic actions of the state can be found in the Strategy for Sustainable Development of Rural Areas, Agriculture and Fisheries, prepared by the Minister competent for agriculture and development of rural areas and adopted by the Council of Ministers in April 2012 as one of nine integrated strategies for development. The Strategy is available at: http://www.minrol.gov.pl/pol/Informacje-branzowe/Strategia-zrownowazonego-rozwoju-wsi-rolnictwa-i-rybactwa-na-lata-2012-2020/Dokumenty-analizy.39 Eurostat, data for 2010.

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The results of conducted analyses show that lower labour productivity in individual sectors of the economy in Eastern Poland results from scarce regional assets of voivodeships, such as infrastructure, technological and innovative potential, and labour quality. While the awareness of the impact of availability and quality of infrastructure, labour quality and innovativeness on the achieved economic results is common, the conducted decomposition has shown that these factors are responsible for a significant part of development disparities in the macro-region against the average for Poland (from about 1/5 in Podlaskie Voivodeship to almost a half in Podkarpackie Voivodeship).

Insufficient use of available labour resources is a factor which strongly affects the low level of development. Employment issues and outflow of population related to employment40 have a significant negative effect on economic development of the macro-region. The second of phenomena mentioned above shows that job markets in Eastern Poland are not very attractive. Too high migration from poorer regions to the wealthier ones can lead to a decrease in the amount of qualified employees (the so-called brain drain), which negatively affects the potential of macro-regional economy, and has negative social effects (affecting family bonds, deepening unfavourable demographic trends).

Considering the ongoing qualitative and quantitative changes in demography of Eastern Poland, unfavourable trends related to diminishing labour resources should be expected.41 Until 2020, a decrease in the share of working age population in the macro-region to less than 60% (i.e. over 4 pp), similar to the estimated value for the whole country, is projected. In absolute values, it is estimated that the size of working age population in 2020 in the macro-region will amount to 4.7 mln and, in comparison to 2010, will diminish by over 9% (by 8.6% in the whole country). The decrease will be greatest in Świętokrzyskie Voivodeship (by over 12%) and in Lubelskie and Warmińsko-Mazurskie Voivodeships (by over 10%).42

Diminishing of labour resources will be accompanied by the process of population aging (aging index43 in Poland will exceed 100%, which means that population aged above 60–65 will be greater than working age population).44 This process will vary across regions. In case of Świętokrzyskie Voivodeship, in 2020 this “excess” will be 40%, against 20% on average in Poland. The processes of aging will be relatively

40 I.e. number of employees decreasing over the year and outflow of employees who commute to other voivodeships. It should be noted that people who work in other region without changing their place of residence co-generate GVA for that region, and not for their original voivodeship.41 Based on Prognoza ludności do roku 2035 (Population Projection until 2035), Central Statistical Office 2009.42 It should be emphasised that, eventually, economic activity index and changes introduced to the pension scheme will affect labour resources.43 Size of the retirement age population (women aged 60 and men aged 65 and over) to size of the pre-working age population (up to 18 years old).44 The process of population aging will be most advanced in urban areas and will affect the female population to a larger extent (in Eastern Poland in 2020, the aging index for women will be twice as high as for men, which will negatively affect natural population change in the macroregion).

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least dynamic in Warmińsko-Mazurskie and Podkarpackie Voivodeships; the excess will be below 10%.

1.3. Conclusions

Eastern Poland macro-region is characterised by lower labour productivity than the average for Poland, which results from the established sectoral specifics of the economy, concentration of significant labour resources in inefficient agricultural sector, as well as from lower than the national average productivity of other sectors of the economy. Moreover, the results of conducted analyses have indicated innovative potential, quality of labour resources, and infrastructure as three areas responsible for most of the development gap between the macro-region and more developed parts of Poland and of the EU. Identifying development barriers and development potentials, preceded by situation diagnosis in these three areas, is the subject of the chapters that follow.

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2. INNOVATION OF EASTERN POLAND MACRO-REGION – A DIAGNOSIS

The level of innovation of Eastern Poland voivodeships is lower than the national average45. This results in lower labour productivity which adversely affects the competitiveness and investment attractiveness of the macro-region46. In the study on regional innovation potential, covering all regions of EU-27, the voivodeships of Eastern Poland were classified as low innovation regions (the so-called weak diffusers), capable of absorbing innovation produced elsewhere rather than generating breakthrough innovation, starting new waves of economic growth47. These findings were also confirmed in the typology of regional innovation, developed by European Spatial Planning Observation Network (ESPON), which classifies the voivodeships of Eastern Poland as regions with imitative innovation profile48.

Map 3: Innovation potential of EU-27 regions (2008)

Canarias

Guyane Guadeloupe

Réunion

Açores Madeira

REGIO gis

Strong generators

Good results

Weak absorbents

Weak diffusers

Source: Innovation Union Scoreboard 2011.

45 Innovation of economy is understood as the capacity of companies and other organisations to introduce innovation, absorption capacity (for example to implement new production processes, use of new technologies, learning etc.) and proinnovation attitudes among companies and consumers.46 According to the ranking of investment attractiveness of Polish voivodeships and subregions, prepared annually since 2004 by Institute for Market Economics, the voivodeships of Eastern Poland are systematically placed in the lowest ranking positions, in terms of investment attractiveness for running both high-tech businesses (except for the Rzeszów subregion, which in 2011 came 11th in the country) and industrial or services activity. The ranking is available at www.ibngr.pl.47 DG Regio, the European Commission, 2010.48 Knowledge–Innovation– Territory, ESPON, 2012.

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Innovation of eastern poland macro-region – a diagnosis

Map 4: Regional innovation profiles in EU-27

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Canarias

Mar niqueGuadeloupe

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Riga

Oslo

Bern

Wien

Kyiv

Vaduz

Paris

Praha

Minsk

Tounis

Lisboa

Athina

Skopje

Zagreb

Ankara

MadridTirana

Sofiya

London

Berlin

Dublin

Tallinn

Nicosia

Beograd

Vilnius

Kishinev

Sarajevo

Helsinki

Budapest

Warszawa

Podgorica

El-Jazair

Stockholm

Reykjavik

København

Bucures

Amsterdam

Luxembourg

Bruxelles/Brussel

Ljubljana

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© EuroGeographics Associa on for administra ve boundaries

© Politecnico di Milano, ESPON KIT Project, 2012260 5200

km

This map does notnecessarily reflect theopinion of the ESPON

Monitoring Commi�ee

Legend

No data

Imita�ve innova�on area

Smart and crea�ve diversifica�on area

Smart technological applica�on area

Applied science area

European science-based area

Origin of data: EUROSTAT, 2012Source: Own elabora�on, 2012

Regional level: NUTS2

Source: Knowledge–Innovation– Territory, ESPON, 2012.

The low assessment of innovation level of the economies of Eastern Poland voivodeships coincides with an analogous assessment of Polish economy, which – according to Innovation Union Scoreboard 201149 ranking used for international comparisons of innovation of economies – belongs to the category of the so-called “moderate innovators”, and is ranked low (23rd position among 27 EU countries), and shows characteristic features of the least innovative group in the EU. The innovation potential in Poland is unsustainable as it builds mainly on human resources, with low propensity to innovation and cooperation in R&D50. The results of ESPON studies also show that virtually whole Poland is technologically and scientifically backward, and poorly linked with the environment, which adversely influences the scale, dynamics and diffusion of innovation processes51.

49 Innovation Union Scoreboard 2011 (IUS 2011), covering data for the years 2006–2010, is a new version of European Innovation Scoreboard, which takes into account additional indicators and is used mainly to monitor the progress in implementing the goals of Europe 2020 strategy in the smart growth area. The general index of IUS 2011 includes eight groups of indicators, divided into three categories: facilitators (human capital, possibility to obtain funds from the market or state support for the innovators, quality, openness and attractiveness of national research system), the activities of companies (companies investments in innovation, cooperation with other entities and the creation of intellectual property) and results (the number of innovators, economic effects of innovation).50 Bukowski M., Szpor A., Śniegocki A., Potencjał i bariery polskiej innowacyjności [Potential and barriers of Polish innovation], Institute for Structural Research, Warsaw 2012, p. 16.51 Knowledge–Innovation– Territory, ESPON, 2012.

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Figure 4: Innovation Union Scoreboard 2011 ranking.

0.920112007

Latvi

a

Bulgaria

Lithuan

ia

Romania

Poland

Slova

kiaM

alta

Greece

Hungary

Spain

Czech

Republic

Portuga

lIta

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Estonia

Cypru

s

Slove

nia EUFra

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Irelan

d

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Austria

The Neth

erlands

United Kingd

om

Belgium

Finlan

d

German

y

Denmark

Sweden

Japan

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ates o

f Americ

a

Switz

erland

0.8

0.7

0.6

0.5

0.4

0.3

0.2

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Source: Potential and barriers of Polish innovation, Institute for Structural Research, 2012.

Figure 5: Poland relative to EU-27 in 8 areas of indicators Innovation Union Scoreboard 2011 (in brackets: Poland in EU).

Human capital(14/27)

Quality, openness, a�rac�veness

of the research system(26/27)

Funding and support

(19/27)

EU-27

Poland 2007PolandEU-27 leaders

Companies investments

(16/27)

Coopera�on and entrepreneurship

(24/27)

Crea�on of intellectual

property(22/27)

The number of innovators

(26/27)

Economic effects(21/27)

Source: Potential and barriers of Polish innovation, Institute for Structural Research, 2012.

As regards Eastern Poland, it is possible to name a range of social, economic and spatial indicators that adversely affect the innovation level of economies, both in terms of demand and supply of this process52.

The adverse demand indicators include especially the lowest level of per capita income and expenditure in Poland. In 2011, between 21 and 26% of people

52 Demand/supply approach in the cyclic innovation model (Berkhout, 2000; Rothwell, 1994) presupposes the necessity to affect both the supply side of innovation process (development of scientific research, enhancing links between science sector and enterprises) and its demand side (formation of demanding and specialized markets, proinnovation consumer attitudes resulting in buying products and services with high added value, including innovative products and services).

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from households in the macro-region lived in relative poverty53, which placed the voivodeships of Eastern Poland at the lowest positions in the country. In the face of adverse financial situation, the households in Eastern Poland focus mainly on securing the essentials for living rather than on buying innovative - often more expensive – products or services.

The second phenomenon adversely affecting the demand for innovation, and resulting from difficult economic situation in the macro-region, is the systematically continuing negative migration balance. Young people with higher education degree are leaving the macro-region (in 2008, the migration balance in Eastern Poland was about –11.5 thousand of people, of which about 7 thousand were people in the age between 25–34, including a significant share of university graduates). This phenomenon is important for effective stimulation of innovation of economies as this group demonstrates the greatest openness to market novelties and is most willing to buy innovative goods and services.

The process of forming specialised markets is also adversely affected by the level of entrepreneurship lower than national average (on average, in 2011 there were 1004 economic entities per 10 thousand residents in Poland, while in Eastern Poland the corresponding figure was 76254), which hinders the flow of knowledge and technology as well as cooperation. Taking into account the observed tendency of spatial concentration of innovation activity in the most developed cities, the lower value of urban indicator, which is characteristic for the macro-region (49%, compared to 61% national average), also does not foster innovation.

The significant macro-regional challenges, barriers and potentials focus on the supply side of innovation process – in sectors which are key elements of the innovation system, that is within or across scientific-research and enterprise sectors.

2.1. Potential of science and research sector in Eastern Poland

2.1.1. Research and development activity and personnel

The macro-region is characterised by a relatively low level of development of the science sector. Despite a significant increase in expenditure on research and development (R&D) observed in 2002–2010 (in this period, Świętokrzyskie Voivodeship almost doubled its expenditure on R&D, while Podkarpackie Voivodeship increased it almost four times), the total expenditure on research and development in five Eastern Poland voivodeships amounted to merely 13% of national expenditure in 2010, and their share in regional GDP per capita was lower than the national average.

53 Central Statistical Office: the relative poverty line – 50% of average (equivalent) expenditure of households.54 Data as of 2011, source: local data bank of CSO.

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Map 5: Higher education from regional perspective.

A) HIGHER EDUCATION

A) HIGHER EDUCATIONProfessors and docents at the universi�es (2008/2009)(according to data from the Ministry of Science and Higher Educa�on)

Ph D students per 100 thousand of residents

Public universi�es

Non-public universi�es0 8153

>10

6 30 60 100 150 180

6-9 12-53000500100

The number of universi�es from the first „50” of „Rzeczpospolita” and „Perspektywy” ranking

Source: National Spatial Development Committee, 2030.

In terms of numbers, scientific personnel in the macro-region lags behind national leaders. In 2004–2010, between 9.8% and 14.2% of people employed55 in the research and development sector in Poland worked in Eastern Poland voivodeships. In 2010, the number of people employed in R&D sector (in FTE) in the entire macro-region per 1000 economically active persons was lower than national average (4.6 in the country, 2.9 in the macro-region).

Academic centres from Eastern Poland do not come high in national university rankings56. In Perspektywy 2012 ranking, only 12 among 90 universities came from the macro-region. The best Eastern Poland university in 2012 (Medical University of Bialystok) was ranked at the end of the second ten, while half of universities of Eastern Poland came in the fifth ten. In recent years, the position of all universities from the macro-region also has not significantly improved in the ranking.

55 In full-time equivalent (FTE). One full-time equivalent means one man-year devoted exclusively to R&D activity. Based on the definition of Central Statistical Office.56 The relatively recent establishment of universities could be one of the reasons of their low position in the ranking. The oldest of them are KUL (1918) and UMCS (1944). However, most of them , or of institutions from which they originated, were founded in 50s of the 20th century (Medical University of Lublin and Bialystok, Lublin University of Technology, Policy Academy in Szczytno) while some of them obtained their current status much later (Rzeszów University of Technology – 1974, University of Rzeszów – 2001).

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On the other hand, an analysis of the ranking of technical, mathematical and natural sciences faculties at Eastern Poland universities shows that the grades they received place them in the middle of the ranking. Biological subjects in Eastern Poland are ranked slightly higher (for a total of 50 positions: Maria Curie-Skłodowska University (UMCS) in Lublin is ranked 12th, University of Warmia and Mazury in Olsztyn – 13th, University of Białystok – 14th).

2.1.2. Participation of science centres from Eastern Poland in cooperation networks

The low scientific potential and insufficient connections of Eastern Poland universities within the international cooperation networks of science and research centres is reflected in their relatively low participation in national and international research projects. For example, in the seventh framework programme for research and technological development for 2007–2013, only 5.8% of participants in funded projects in Poland represented Eastern Poland. There were only 3 universities from Eastern Poland represented by 46 scientists honoured in 2011 in the category “outstanding scientific or artistic achievements, habilitation dissertation and doctoral dissertation”. Among 100 winners of the “Diamond Grant”, an award granted by the Ministry of Science and Higher Education to outstanding young scientists who conduct their own scientific research, only 4 universities from Eastern Poland (all from Lublin) were represented. In 2012, within module 3 (results of Polish humanities research in the world) of National Programme for the Development of Humanities, among 56 awarded science and research projects 6 came from the macro-region57. Among the remaining components of this programme, Eastern Poland participated on a small scale in the module concerning support for projects carried out in multi-environmental and multidisciplinary cooperation by teams consisting of Polish and foreign participants. From 26 scientific centres awarded in this field only 3 came from Eastern Poland (Catholic University of Lublin, UMCS and University of Rzeszów).

Against the background of low national and international activity of science and research centres from Eastern Poland, the success of Centre for Innovative Research of Medical University of Białystok achieved in 2012 should be noted, when the Centre was among the six top national scientific units selected by the Ministry of Science and Higher Education and honoured as Leading National Research Centres bringing together the most talented scientists and students in mathematical, natural, technical and medical sciences, health sciences and physical culture studies58. This award is not only the recognition of the university potential to function as an important element

57 Rewarded projects were carried out at the Jan Kochanowski University in Kielce, University of Bialystok, University of Rzeszow and Maria Curie-Skłodowska University (UMCS) in Lublin.58 Criteria for evaluation, that was carried out by the committee consisting of 17 representatives of the most prestigious international scientific centres, included: scientific potential of the units and their employees, international indicators of publication and citation, implemented research grants, implementations and patents, and cooperation with economic environment.

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of scientific cooperation on international scale, but it also gives a clear signal that scientific centres from Eastern Poland can successfully aspire to be national leaders.

Map 6: Publication potential of sub-regions and cooperation directions in 2001–2006

The number of ar�cles from Web of Science affiliated in sub-region

The number of jointly wri�en ar�cles

21824 601-891

10-100

101-200

201-300

301-450

451-600

7000

2000Independent

Na�onal coopera�on

Foreign coopera�on

Na�onal and foreign coopera�on

Source: Olechnicka A., Płoszaj A. Polska nauka w sieci? Przestrzeń nauki i innowacyjności. Raport z badań [Polish science online? Space of science and innovation. Research report]. Warsaw 2008; p. 25 based on data from Web of Science.

The relatively low share of universities from Eastern Poland in science and research cooperation networks is also confirmed by a spatial analysis of scale and directions of cooperation between scientific centres that is shown in joint publications (Olechnicka, Płoszaj, 2008). The analysis of data for the years 2001–2006, covering four categories of publications (written independently, in national cooperation, in foreign cooperation, and in national and foreign cooperation) shows that the majority of regions in Poland are characterised by a strong national specialisation, which is similar to the situation in Eastern Poland. However, scientific centres in the macro-region are characterised by their relatively high hermeticity, understood as higher than average national share in publications that were written independently by scientists from a given sub-region.

The scale of cooperation between scientific centres in the macro-region, measured by the number of joint scientific publications, is also small.

It should be noted that the current relatively low level of development and networking of science and research sector in Eastern Poland could be somewhat explained by the scale of infrastructural backwardness that characterises science

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and research centres operating in this area. The importance of the problem has been recognised, as evidenced by the substantial amount of European funds under the Cohesion Policy earmarked for the R&D sector in the macro-region under the programmes of National Cohesion Strategy for the years 2007–2013. This support, including for investment projects such as expansion and modernisation of university infrastructure and research labs, and purchase of research equipment, amounted in total to over PLN 4 billion until the mid-201259.

2.1.3. Development potentials of science and research centres

In addition to the visible positive changes in terms of infrastructural improvements for science and research centres in Eastern Poland, it is possible to identify two key potentials, which, if enhanced, would strengthen the process of systematic inclusion of universities from the macro-region to national and international cooperation networks. The first such potential consists in the experience gathered during cooperation between academic centres of Eastern Poland voivodeships with partners from the East European countries, in particular Ukraine, Russia and Belarus, and possibilities for further internationalisation of teaching and scientific offer of Eastern Poland centres. Jointly organised scientific conferences, seminars and summer schools, the exchange of Belarusian, Russian and Ukrainian teaching staff, Faculty of Economics and Informatics of the University of Białystok located in Vilnius, and initiative of European College of Polish and Ukrainian Universities - these are only some positive examples of such cooperation. It is also worth noting that the proportion of foreigners in the total number of students in the academic year 2010/2011 in Eastern Poland was significantly higher than national average (1.3% compared to 0.9%). The majority of students came from countries bordering Eastern Poland voivodeships, while Lubelskie Voivodeship (2049 foreign students) and Podkarpackie voivodeship (1154 foreign students) are the leaders in terms of number of foreign students.

The second macro-regional potential consists in research specialisations of Eastern Poland R&D centres. In 2010, up to 36.2% of national funds in agricultural sciences, 11.7% in the field of engineering and technical sciences, and 7.9% in the field of natural sciences were concentrated in the macro-region. An analysis of the number of articles from various scientific fields, the number of professors and assistant professors, as well as structure and expenditure of R&D activity by the fields of science, and employment structure of independent employees and employees with PhD degree, indicates a significant macro-regional specialisation in the field of agricultural and natural sciences, which corresponds to the leading economic specialisation of the macro-region, namely food production. This phenomenon

59 The total value of projects amounted to PLN 4,031,347,969.24, of which 90% was funding under DEP OP, ROP for five Eastern Poland voivodeships, HC OP and IE OP. Own calculations based on data generated from the KSI SIMIK National Information System on 23 July 2012, reflecting the situation as of 30 June 2012.

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should be recognised as positive, as it provides an opportunity for systematic increase in the potential of science sector in Eastern Poland to participate in the process of knowledge transfer and commercialisation, which contributes to strengthening the macro-regional endogenous potential in the longer term60.

2.2. Innovation potential of business sector in Eastern Poland

2.2.1. Expenditure and innovation activity of enterprises, and the level of innovation commercialisation

In the years 2006–2011, the total expenditure of enterprises on innovation activity in Poland increased by 24.7% (in the service sector it increased by 33%, and in industrial sector - by 20.7%), however, at the same time in Eastern Poland such expenditure increased only by 10% (in services - by 13%, and in industry it decreased by 2.1%)61. Low growth dynamics is an alarming phenomenon, given the fact that there is a strong cause and effect relationship between the value of expenditure on innovation and the value of sold production of new and significantly improved products in enterprises.

Another worrying trend observed in Eastern Poland and coincident with the trend occurring at the national level was a decline in the share of innovation enterprises in the total number of enterprises (in the years 2006–2011 - by 7.6 percentage points among industrial companies at the national level, and by 9.6 percentage points in the services sector).

Map 7: Intensity of expenditure on innovation in enterprises (services and industry) in 2011.

Expenditure on innova�on ac�vity in million PLN in 2011

13 000 000

Expenditure on innova�on ac�vity per 1 employee in thousand PLN

3.71 to 8.65 (3)2.96 to 3.71 (3)2.03 to 2.96 (2)1.69 to 2.03 (4)1.16 to 1.69 (4)

Source: own study on the basis of data from the local data bank of CSO.

60 Cf. Gaczek W., Matusiak M., Innowacyjność gospodarek województw Polski Wschodniej – ocena, znaczenie, perspektywy [„Innovation economies of Eastern Poland voivodeships – evaluation, significance, perspectives”]. Expert’s report commissioned by the Ministry of Regional Development, Poznań 2011.61 Own calculation on the basis of data from the local data bank of CSO.

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This may be caused by a natural tendency to withdraw from risky activities and investments during economic slowdown or even economic crisis, but it is certainly a negative phenomenon from the perspective of strengthening the innovation potential of macro-regional economies.

Innovation potential of the macro-region, measured by the volume of expenditure on innovation activity of industrial and services enterprises, is low – in 2011 such expenditure constituted only 9.5% of the total expenditure in Poland62. The structure of sources of origin of expenditure on innovation activity in the macro-region is similar to the national one and is dominated – but at a lower level than the national average – by enterprises own funds (in 2011, own funds amounted to 82.1% of expenditure in industry, and to 71.5% in services) with a very small contribution from the state budget (in 2011, only 3.6% of expenditure in industry, and 2.8% - in services). For the macro-region, the funds raised abroad, whose share in financing the expenditure on innovation has rapidly increased (from 3.8% in industry and 1.6% in services in 2006 to 11.6% and 16.8%, respectively, in 2011), were more important than the national average63. The structure of expenditure on innovation is slightly different from the national one, with a higher share of expenditure on the purchase of knowledge from external sources (in 2011 on R&D activity), which may be regarded as a positive phenomenon, and on the purchase of fixed assets, partially justified by the infrastructural distance that the enterprises operating in macro-region have to make up. The relatively high and growing share of expenditure on research and development should be considered as positive – especially in the following voivodeships: Podkarpackie (in 2011 – 29% compared to the national average of 13.4%, with the intensity of such expenditure characterized by relative stability), and Świętokrzyskie (20%), which corresponds to the high share of enterprises from these regions in total expenditure of voivodeships on R&D activity.

In 2010, the intensity of expenditure on innovation per employee was only 37% of national average. Similarly, the average volume of innovation expenditure per 1 innovation enterprise, although highly diversified at the regional level (ranging from PLN 1.9 million in Warmińsko-Mazurskie Voivodeship to PLN 3.8 million in Podkarpackie Voivodeship), was significantly lower than national average in Eastern Poland in 2011 (PLN 5.1 million).

Furthermore, the level of innovation commercialisation in macro-region, measured by the share of innovation products in net income from overall sales of products, is also low which shows poor effectiveness of the whole innovation

62 Podkarpackie Voivodeship is an indisputable leader in the macroregion in terms of expenditure on innovation activity in both industry and services – in 2011, the expenditure in this voivodeship amounted to 1/3 of expenditure and 57.7%, respectively, of the whole macroregion.63 Estimates based on CSO data. Data for Podlaskie Voivodeship were estimated on the basis of data on participation and historical data.

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process. With regard to this aspect, it should be noted, however, that differences between voivodeships are significant in the macro-region. In 2011, the best position among industrial enterprises in the macro-region, as the share of income from sales of new or significantly improved products, was recorded in Podkarpackie Voivodeship where it amounted to 10.5%, which is above national average (8.9%). The majority of solutions introduced on the market were not innovative on a larger scale, they were rather of adaptive character for the enterprises. Income from sales of innovation products for export in the macro-region was lower than national average (3.2%, compared to 4.2% in 2011). It should be stressed that this value was as high as 5.5% for Podkarpackie Voivodeship and it was below 1% for other regions of Eastern Poland.

2.2.2. Barriers to innovation activity of enterprises in Eastern Poland

Entrepreneurs from Eastern Poland, to a greater extent than average, perceived as major barriers to innovation the difficulties in financing innovation (they pointed to the high costs of innovation, the lack of own funds for financing innovation, and insufficient access to external sources of financing) and the market challenges (main difficulties in this respect included market dominance of one enterprise, problems in finding partners for cooperation, and uncertainty of demand for specific innovation). Innovation activity was also hampered by the lack of access to the knowledge, including the lack of well qualified personnel, comprehensive information on the markets, and a low level of use of more advanced information technology (for example, internal computer network LAN, Intranet, e-business solutions)64. Significant barriers to development of innovation, both generally in society and among enterprises, included also a common conservative attitude, which hindered the innovative ideas, and a conviction that innovation was unnecessary which, in turn, contributed to the low demand for innovation, indicated by the enterprises as one of major barriers to such activity.

Foreign direct investment (FDI) can act as a vital impulse, overcoming the barriers to development of innovation of the macro-region economies, and providing the necessary financial injection. Capital flows are frequently accompanied by the transfer of technology, of modern management system and of intellectual capital, which provides an additional – apart from stricte financial - opportunity to boost the endogenous innovation potential. In 2007–2010, Eastern Poland attracted only

64 Cf. Gaczek W., Matusiak M., Innowacyjność gospodarek województw Polski Wschodniej – ocena, znaczenie, perspektywy [Innovation economies of Eastern Poland voivodeships – evaluation, importance, perspectives]. Expert’s report commissioned by Ministry of Regional Development, Poznań 2011, s. 79; based on the data from the enterprises’ reports PNT-02/2010 submitted to CSO (report on innovation in the industry).

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6% of total FDI in Poland65 and the voivodeships of eastern macro-region came last in terms of absolute value of FDI, as well as in its value per resident. In this situation, capital flows under FDI were not a remedy for the shortage of funds. However, in the analysed period Podlaskie Voivodeship, as the only one in the country, recorded an increase in FDI inflow. Mid year growth rate for Podlaskie Voivodeship amounted to nearly 119%66. For other voivodeships, the FDI inflow decreased in the period 2007–2010, however, the macro-region noted a lower decrease than the rest of the country.

Map 8: Inflow of foreign direct investment per capita in 2007–2010.

Map 9: Inflow dynamics of foreign direct investment per capita in 2007–2010.

<100 (in EUR)

902 (mazowieckie)

201–400

101–20070–80%

119% (podlaskie)

91–100%

81–90%

Source: BIEC, data from CSO and NBP. Source: BIEC, data from CSO and NBP

2.2.3. Potentials: leading endogenous supra-regional economic specialisations67

Despite the observed barriers to innovation in the macro-region business sector, it is possible to identify certain potentials which, if supported consistently, can provide an opportunity to increase the innovation level of macro-region economies, and, in result, allow to improve the development and competitive position of the

65 Cf. Szacunek PKB per capita i bezpośrednich inwestycji zagranicznych w województwach oraz wskaźniki wyprzedzające koniunktury [Estimate of GDP per capita and foreign direct investment in voivodeships and leading economic indices]. Expert’s report commissioned by the Ministry of Regional Development, BIEC – Biureau for Investments and Economic Cycles, Warsaw 2011.66 In 2010, IKEA established in Podlasie a factory, with target level of employment over 2 thousand, at the cost of EUR 340 million. The investment was the biggest one in Poland and one of the first in Podlaskie Voivodeship. It is expected that this project will increase the number of foreign entities in the region. Cf. Bezpośrednie inwestycje zagraniczne w latach 2001-2010 – ogólne tendencje [Foreign direct investment in 2001–2010 – general tendencies], Ministry of Economy, Department of Economic Analyses and Forecasts, Warsaw 2011.67 If there is a need to prepare an additional document, identifying areas of intra-macroregional intelligent specialisation of Eastern Poland in order to fulfil the ex ante condition of the European Commission in relation to the programming support of EU Cohesion Policy for 2014–2020, the Ministry of Regional Development will draft such document, taking into account leading economic specialisations of Eastern Poland, identified in section 2.2.3. of the Strategy and supplemented with conclusions resulting from the strategic documents constituting the framework for supporting regional and national intelligent specialisations in Poland.

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region. These potentials include, first of all, the existing economic specialisations68 in certain sectors, where qualified human resources and business skills concentrate. This fosters development of such sectors and is conducive to emergence of new producers and service providers, thus contributing to anchoring a given activity in a given sector and in related ones.

Eastern Poland is unique in terms of sectoral structure of industry69. This is due to the greater than national average role of food production, as well as of rubber, plastic, wood and furniture industries. The importance of machinery and equipment production is also higher than national average. As regards “rare” industries, the macro-region plays significant role in aviation and tobacco industry. The evolution of industrial structure in Eastern Poland towards more advanced sectors can be observed in the years 2002–2010. Among six industries which faced both absolute (in production value) and relative (share in the industry) decrease in significance, five belong to traditional industries. Industries that highly increased their share in industrial structure in 2002–2010 included rubber and plastic industry, and metal industry.

The seven largest industries in Eastern Poland, namely food, rubber, plastics, mineral, metal, furniture, wood, and machinery and equipment generate 63% of sold production and employ 60% of people employed in the industry of macro-region. Agro-food industry is the leading branch of industry in Eastern Poland, generating 23.9% of sold production and engaging 17.3% of people employed in the macro-region, that is 2-3 times more than other main sectors. Food production is the most significant sector in terms of employment and sold value in three of five analysed voivodeships, and its role is particularly important in Podlaskie Voivodeship (48% of total value of sold production), followed by Warmińsko-Mazurskie and Lubleskie Voivodeships (38% and 26% of sold production, respectively). In terms of value of sold production, the production of rubber and plastics is the second biggest industry in Eastern Poland, having special place in the economies of Warmińsko--Mazurskie, Podlaskie and Podkarpackie Voivodeships. This sector is slightly less important in terms of general employment, where it stays behind metal and furniture industries (by approximately 1 percentage point). A characteristic feature of rubber industry is high concentration of employment and production in large industrial plants, which have operated in the macro-region for dozens of years - in Podkarpackie, Warmińsko-Mazurskie and Podlaskie Voivodeships. The employment in the three largest plants accounts for 31% of total employment in this sector. The

68 Economic specialisation should be understood as sectoral economic structure of a given region being different from the average for other regions.69 See: Dej M., Domański B., Działek J., Gwosdz K., Sobala-Gwosdz A., Znaczenie przemysłu dla „inteligentnego i trwałego” rozwoju regionu Polski Wschodniej oraz podejmowanych działań dotyczących jego restrukturyzacji i modernizacji. [The importance of the industry for the “intelligent and sustainable” development of Eastern Poland and taken actions that concern restructuring and modernisation]. Expert’s report commissioned by the Ministry of Regional Development, Krakow 2011.

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third largest sector in Eastern Poland – with the share in sold production above 7%, and 6% share of employment in industry – is mineral industry, particularly in Świętokrzyskie Voivodeship and, to a lesser extent, in other voivodeships of the macro-region. In terms of employment, metal products industry is the second major industry branch in Eastern Poland, and the fourth in terms of value of sold production. Furniture and wood industries operate on a similar scale in Eastern Poland, playing a significant role in sectoral structure of Warmińsko-Mazurskie and Podlaskie Voivodeships. Each of these industries accounts for slightly over 5% of value of sold industrial production in Eastern Poland. However, the role of furniture sector is more important in terms of number of employed, as with 31 thousand of employees the furniture sector is the third largest branch of industry in Eastern Poland (8% of employed), while the share of wood industry is slightly smaller (6%). The last branch of processing industry, whose share in employment or sold production exceeds 5%, is production of machinery and equipment, in particular, in Podkarpackie and Lubelskie Voivodeships.

Industrial sectors in Eastern Poland can be characterised by specialised production and service concentrations, including numerous cluster initiatives, linked to local capabilities, characteristic for the place where such initiatives occur. These capabilities, which include qualifications and quality of local labour force and of local suppliers and institutions, have been formed over the years on the grounds of former industrial traditions, in result of interaction between large and medium-sized enterprises and their local and regional environment. Clusters enhance competences of enterprises operating in a given region, rooting and strengthening their activity, and at the same time attracting new producers70.

70 Detailed information on the number, profile, level of employment and spatial deployment of clusters in Eastern Poland can be found on the so-called Interactive cluster map, regularly revised by Polish Agency for Enterprise Development and available on the website: http://www.pi.gov.pl/PARP/data/klastry/index.html

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Table 2: Clusters in Eastern Poland voivodeship

Cluster class

Lubelskie Podkarpackie Podlaskie Świętokrzyskie Warmińsko-Mazurskie

Sector/number of employees

*** lack lack lack lack • Furniture(13348)

**

• Educationandproductionofknowledge(13609)

• Foodprocessing(24114)

• Aviation(5876)• Automotive

(11781)• Construction

machineryandservices(11211)


• Educationandproductionofknowledge(6026)


• Constructionmachineryandservices(8172)


• Quarries(1655)

• Clothes(6953)• Construction

machineryandservices(8002)


*

• Agriculturalproduction(5107)


(13158)• Financial

services(13861)

• Footwear(1851)

• Furniture(5083)

• Transportandlogistics(10944)


(16095)• Financial

services(11330)

• Furniture(7755)

• Machinery(4192)


• Constructionmachineryandservices(4541)

• Construction(6972)

• Financialservices(809)

• Furniture(4438)



(11342)• Construction

materials(1418)


• Construction(10584)


• Lightningandelectricalequipment(1364)


Source: Study prepared by the National Centre for Research and Development on the basis of European Cluster Observatory, 2011, Star Clusters In Poland, Europe Innova. The evaluation of activity concentration was made on the basis of volume, strength and dominance of individual sectors, calculated, i.a., on the basis of employment level in a given sector, as well as strength and economic specialisation, assessed according to 1-3 scale, where 3 means clusters with the highest potential in all categories.

2.3. Links between science and business, and cooperation under triple helix

Despite a gradual transformation of R&D expenditure structure towards increasing the share of development activities, Eastern Poland is characterised by weak links between science and economy, as evidenced by the low level of research commercialisation. The results of the contest “Top 500 Innovators” for people

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engaged in scientific research and commercialisation of its results, organised by the Ministry of Science and Higher Education in 2012, shows relatively small success in the commercialisation of knowledge from research and scientific centres in the macro-region. Among 80 finalists of the second edition there were only 7 representatives of science and research centres from Eastern Poland71.

Effective mechanisms for knowledge transfer are necessary to intensify cooperation and develop links between science and business. There are 49 innovation centres in the macro-region, that is every fifth such institution in the country is located there. Nevertheless they constitute only Ľ of business environment institutions in the macro-region, while in the most developed regions (for example in Mazowieckie and Małopolskie Voivodeships) they constitute over 40% of the total number of such institutions. Support for diversified and sector specific innovation processes, as well as identification of possibilities to introduce innovation of various kinds, require further development and professionalization of specialised support and advisory services as well as appropriate support programmes, adjusted to the sectors dominating in the macro-region and to the characteristics of economic entities.

It should be emphasized that in order to raise the level of innovation in the Eastern Poland macro-region it would be necessary to enhance cooperation between science, business and public sector under the so-called triple helix. Public sector plays an increasingly important role in innovation processes as a generator of new solutions and innovation culture through actions taken within public development and sectoral policies. Public authorities also have a significant influence on creating framework conditions for innovation processes (legislation, infrastructure, innovation financing, education shaping pro-innovation attitudes). Joining science, business and public administration in cooperation networks under triple helix is a crucial element of an effective institutional system, promoting intensification of innovation processes.

71 1. Medical University of Bialystok, 2. University of Warmia and Mazury in Olsztyn, 3. Centre for Innovation and Technology Transfer at the University of Warmia and Mazury in Olsztyn, 4. University of Information Technology and Management in Rzeszow, 5. Rzeszow University of Technology, 6. Medical University in Lublin and 7. Maria Curie-Skłodowska University in Lublin.

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3. LABOUR RESOURCES IN EASTERN POLAND MACRO-REGION – A DIAGNOSIS

Eastern Poland is characterised by a very high level of concentration of labour resources in agricultural sector, whose labour productivity is much lower than that of other sectors of the economy. The share of persons employed in agriculture in the macro-region – which is significantly higher than both the national and the European Union average – has a direct impact on the intensity of utilisation of macro-regional labour resources.

Hidden unemployment72, characteristic for typically agricultural areas which constitute a significant portion of Eastern Poland voivodeships, is an important factor for diagnosing the situation on macro-regional labour market. This phenomenon makes it more difficult to properly assess the actual situation, which is much worse than suggested by official data provided by Employment Offices73.

Unemployment rate74 in Eastern Poland (ranging from 9.7% to 12%, depending on the voivodeship) was slightly higher than the national (9.6%) and the EU (9.7%) average. It is noteworthy that the unemployment rate in the towns of macro-region is the highest in the whole country (between 12% and 14,4%, excluding Warmińsko-Mazurskie Voivodeship), even though the labour market situation in towns should be better than in rural areas.

Quality of labour resources is a factor which has a significant impact on the development-related situation of the macro-region and on the possibility to improve it in the future. The pace of technological progress, which is the main source of economic growth in modern economies, depends on the quality of human capital, on its ability to generate scientific and technological knowledge, and on its capacity to introduce modern solutions. The competitive position of a given region is determined primarily by the availability and the intensity of utilisation of

72 An attempt to assess the scope of overemployment in agriculture was undertaken e.g. in: P. Broniatowska, P. Gajewski, A. Rogut, Rynek pracy w Polsce Wschodniej [The Labour Market in Eastern Poland], Warsaw, 2011; see also: M. Bukowski (ed.) Zatrudnienie w Polsce w 2009 r. Przedsiębiorczość dla pracy [Structure of employment in Poland in 2009. Entrepreneurship for more jobs], Warsaw, 2010.73 In order to better visualize the actual situation on the macroregional labour market, and ensure fuller comparability of the presented content, the majority of data used in the subsequent part of the diagnosis of the labour market situation will be taken primarily from the LFS survey.74 According to NDS 2020: percentage share of the unemployed in the total number of professionally active population, taking into account the definitions of the International Labour Organisation. Data are presented in accordance with the Labour Force Survey, as yearly averages.

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Labour resources in Eastern Poland macro-region – a diagnosis

human capital and by the ability to systematically increase the quality of this capital, fostering efficiency in all sectors of the economy.

Map 10: Share of persons employed in agriculture in 2008 (by regions)

Baseline Indicators(Objec�ve 8)

Importance of PrimarySector in Employment

Share of Employmentin Primary Sector (Branches A_B)(% Total Employment)

EU-27 Average: 5.8%Source: EUROSTAT-Farm Structure Survey for AT: data at NUTS-2 level for UK: break in seriesYear: 2007Calcula�ons: DG AGRI - L2Cartography: DG AGRI GIS-Team 10/2010

≤ 2%

> 20%8 - 20%4 - 8%2 - 4%

N.A.

750 km5002500

©EuroGeographics Associa�on for the administra�ve boundaries

Source: Situation and prospects for EU agriculture and rural areas, European Commission, December 2012

Despite dynamic and positive changes observed in the last decade, the share of persons with higher education75 in the macro-region amounts to ca. 19%, and still remains lower than the average for both the EU (23%) and Poland (20%). The level of adults’ activity in education and training also remains at a significantly lower level than the average for the EU (9.1%) and for Poland (5.3%), i.e. ca. 4.6%76, having a negative impact on the flexibility of this group in adapting to the changing situation on the macro-regional labour market. Eastern Poland is also characterised by a very low level of employment in the high-tech sector77. The share of persons employed in this sector amounted to ca. 1.4%, and was the lowest in the country (the value of this indicator for Poland is 2.7%), as well as significantly lower than the EU average (3.8%).

75 Share of population aged 15–64 with higher education in the total population in that age group in 2010 (%), Eurostat, CSO.76 Share of persons aged 25–64 who are learning or undergoing training in the overall population of that age in %, Eurostat.77 Eurostat, High-Tech Statistics, European Commission, 2011, taken into account: high-technology manufacturing and knowledge-intensive high-technology services.

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Map 11: The share of people with higher education in EU-27 (2010)

Map 12: Level of employment in the high-tech sector in EU-27 (2007)

(% of 25-64 year-olds)EU-27 = 25.9

(1) France and Luxembourg, provisional.Source: Eurostat (online data code: edat_lfse_11)

<= 15 20–3015–20 30–25 Data not available

> 35

High-tech manufacturing & knowledge-intensivehigh-technology service hubs in 2007

Employment in the High-tech manufacturing &knowledge-intensive high-technology serviceas a % share of total employment compared toEU27 average of:– High-tech manufacturing (HTM) 1.11%– Knowledge-intensive high-technology services (HT KIS) 3.28%

The size of the circleis rela�ve to totalnumber of employeesin selected sectors

Both HTM & HT KIS above EU27 averageHTM above EU27 averageHT KIS aboce EU27 averageBoth HTM & HT KIS below EU27 average

Data source: EurostatDK & FR GERD on na�onal level

363 000

100 000

50 0005 000

0 250 500 750km

Source: European Commission, DG Regional and Urban, Policy, 2010.

Source: NORDREGIO, 2007.

3.1. The quality of labour resources and the situation on the labour market in Eastern Poland macro-region

3.1.1. Professional activity of the population of Eastern Poland

The number of persons in working age78 in the macro-region amounts to 5.2 mln (data from 2010), of which 70% are professionally active, a figure which remains slightly below the national average (72%). At the same time, nearly 30% of the working age population in the macro-region remains professionally inactive. The main reasons for professional inactivity include79 – like in other regions in Poland – retirement (45.5% in Poland as a whole, 43% in the macro-region), followed by taking up education (on average one in four inhabitants of the macro-region), illness and disability (15.8%), and family obligations (9.7%). According to these results, the significance of the situation on regional and local labour markets of Eastern Poland is quite marginal from the point of view of survey participants, which is reflected by the fact that only 3.2% of professionally inactive persons from this region claimed that their professional inactivity was a consequence of using up all known means of searching for a job and coming to a conclusion that finding a job in the region was impossible.

78 Working age population covers persons aged 18–59/64.79 Based on data on causes of professional inactivity from 2010. Source: LDB CSO.

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3.1.2. Level of education of the population of Eastern Poland

A common and negative characteristic of labour resources in Eastern Poland voivodeships is the share of persons with higher education, which remains lower than the national average (ranging from 17.3% in Warmińsko-Mazurskie Voivodeship to 19.6% in Podlaskie Voivodeship, with the national average amounting to 19.8% in 2010), as well as the insufficient level of activity of adults in the field of education and training. Within the macro-region, only in Lubelskie Voivodeship the value of indicator measuring the level of participation in different forms of education and training is higher than the average for Poland (5.3%).

The twofold increase of the percentage of persons with higher education in the period between 2001 and 2010 is a positive change, reflecting an improvement in the quality of competences of employees and jobseekers which could increase the level of utilisation of labour supply in Eastern Poland, though the value of this indicator turned out to be slightly lower than the national average (ranging from 9 percentage points in Warmińsko-Mazurskie Voivodeship to 10.1 percentage points in Podkarpackie Voivodeship, with the national average amounting to 10.2 percentage points).

In comparison with persons with lower level of education, persons with higher education much less frequently join the group of unemployed, though in Eastern Poland they also find it more difficult to find employment than in other regions of the country. This may stem from several reasons, e.g. insufficient level of absorption of macro-regional labour market, relatively low interest in raising qualifications or unfavourable – from the point of view of potential employer – education profile. Results of research80 confirm that employers from Eastern Poland (apart from Świętokrzyskie Voivodeship) experience, on average, more difficulties in finding appropriate employees who fulfil their expectations than employers in other regions of the country. Three quarters of the employers in Poland who seek persons willing to undertake employment reported the above mentioned difficulties – the number of such indications in Eastern Poland was higher and oscillated between 70% in Świętokrzyskie Voivodeship and 92% in Warmińsko-Mazurskie Voivodeship.

A difficult situation of graduates on macro-regional labour market encourages migration outside of this area. According to data from 2008, a group of persons with higher education, including in particular those between 25 and 34 years of age, constituted almost a half of the negative balance of migration from Eastern Poland81. The nature of consequences of the observed migratory outflow (“brain drain”) is not only demographic, related with deformations in the structure of

80 Bilans kapitału ludzkiego w Polsce [Balance of human capital in Poland] – Employers’ Study, 2010, 2011.81 Cf. Celińska–Janowicz D., Miszczuk A., Płoszaj A., Smętowski M., Aktualne problemy demograficzne regionu Polski Wschodniej [Current demographic problems of the Eastern Poland region], expert’s opinion commissioned by the MRD, Warsaw, 2010.

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age and gender of the population remaining in the depopulating area, but also socioeconomic, manifesting itself in unfavourable changes in the age and economic activity structure, which can further contribute to decreasing the macro-region’s labour resources in the future.

Figure 6: Migration flows between voivodeships by age groups in 2008 (In – inflow, Out – outflow)

25 000

20 000

15 000

10 000

5 000

0

0–17 18–24 25–34 35–44 45–59 60 and over

Western Poland

Central Poland

Eastern Poland

In Out In Out In Out In Out In Out In Out

Source: Celińska–Janowicz D., Miszczuk A., Płoszaj A., Smętowski M., Aktualne problemy demograficzne regionu Polski Wschodniej [Current demographic problems of the Eastern Poland region]. Expert’s report commissioned by the MRD, Warsaw, 2010, p. 39.

The key determinants of migration flows include – aside from differences in the level of GDP per capita82 – the unemployment rate, expected level of remuneration or expected material benefits from migration, and expected ease in finding employment, i.e. the parameters directly related to the situation on regional labour market83. The scope and directions of migration of persons with higher education are in a certain sense a developmental touchstone of regional economies, as they provide information on appeal of regional economies as potential workplaces and places of residence, and point to their development opportunities in the future.

3.1.3. Level of entrepreneurship in Eastern Poland

Eastern Poland is characterised by low level of entrepreneurship. In comparison to Poland in general, the number of new companies established in the macro-region is significantly lower (in 2010, on average 104 national economy entities were established per 10 thousand inhabitants in Poland, as compared to only 83.4 in Eastern Poland). Against the backdrop of Eastern Poland, the situation in voivodeship capitals, which are characterised by relatively high level of development

82 For a broader perspective see: Ghatak S., Mulhern A. et al., 2008, Interregional migration in transition economies: the case of Poland, Review of Development Economics, vol. 12(1), p. 209-222.83 For more information on the results of analyses concerning the factors having an impact on the migratory decisions taken by educated Poles see: Herbst M., Edukacja jako czynnik i wynik rozwoju regionalnego [Education as a factor and a result of regional development], Wydawnictwo Naukowe SCHOLAR, Warsaw, 2012, p. 167–194.

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and high development dynamics of the SMEs sector is better, as well as the situation in poviats of high tourist appeal.

The results of relevant studies84 indicate that limited own financial resources of potential entrepreneurs constitute the main obstacle hindering the development of entrepreneurship, both in Poland understood as a whole and in the macro-region. Among the barriers blocking the development of entrepreneurship, the following were also indicated: educational barriers (insufficient development of entrepreneurial traits, including creativity and self-esteem, in the process of socialisation and of school and out-of-school education), social and cultural barriers (insufficient social acceptance for owners of companies and for private ownership, lack of conviction that establishing one’s own business is a good way to make a living; limited entrepreneurial potential of society, insufficient interest in running a business activity), fiscal barriers (lack of clarity in fiscal provisions, too high non-wage labour costs), barriers to employment (inflexible labour law which limits the capacity of companies to adjust to changes in management-related conditions), administrative barriers (administrative procedures regulating i.a. the process of establishing a company), shadow economy (lowering the competitiveness due to higher subsistence cost), competition from privileged enterprises (carrying out activities in Special Economic Zones, exempting certain undertakings from the obligation to pay taxes and social security contributions, granting public aid to large enterprises of particular importance for the economy, and difficulties in obtaining EU funding by small firms). Barriers to development of entrepreneurship are also related to infrastructural gaps, which manifest themselves especially strongly in Eastern Poland.

3.1.4. Digital skills of the population of Eastern Poland

In addition to lower educational activity, the inhabitants of Eastern Poland are characterised by low level of digital skills in comparison to the rest of the country, which may lead to digital exclusion (especially in case of inhabitants of rural areas) and which has many negative consequences for their situation on the labour market. Such consequences include a growing risk that the employees having insufficient computer and Internet-related skills will lose their jobs, as well as difficulties in entering or returning to the labour market experienced by the unemployed, and employers’ problems in finding appropriate employees.

The voivodeships of Eastern Poland are characterised by the lowest level of diffusion of information technologies in households in the entire country – the level of utilisation of these technologies by enterprises remains similarly low85. Despite

84 Cf. Przedsiębiorczość w Polsce [Entrepreneurship in Poland], Ministry of Economy, 2011; Przedsiębiorczość kobiet w Polsce [Entrepreneurship of women in Poland], Polish Agency for Enterprise Development, 2011.85 Cf. T. G. Grosse, Rozwój społeczeństwa informacyjnego w Polsce: ocena wybranych inicjatyw w okresie spowolnienia gospodarczego [Development of information society in Poland: assessment of selected initiatives in the period of economic slowdown], in: Samorząd Terytorialny, 7–8, 2010, p. 67.

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positive developments, manifesting themselves in easier access to the Internet, the inhabitants of Eastern Poland enjoy the opportunities offered by modern technologies less frequently than persons from other regions of the country (especially Internet services). Results of surveys on the development of information society86 indicate that basic barriers in access to the Internet are to a significant extent caused by personal factors (lack of motivation and lack of a real need to use web content and services), which stem mainly from insufficient awareness of benefits related to the use of Internet, and the deficit of skills necessary to be able to use the Internet effectively in life and in work, as well as the lack of appropriate equipment.

3.2. Vulnerable groups on macro-regional labour market

3.2.1. Long-term unemployed

Persons joining the group of unemployed in Eastern Poland face significantly greater difficulties in finding a job than such persons in other parts of the country, which is reflected in a high percentage of long-term unemployed (persons unemployed for more than 12 months) in the total number of unemployed. Despite some positive changes which took place between 2003 and 2010, the value of this indicator in Eastern Poland still remains higher than the national average (25.5%). Such a big share of long-term unemployed has a negative impact on macro-regional labour market because such persons lose both their qualifications and skills, as well as their habits related to working on a daily basis.

3.2.2. Young people

On average, young people (up to 24 years of age) experience more difficulties in finding a job in the voivodeships of Eastern Poland than in other parts of the country – in four of macro-region’s voivodeships (except for Podlaskie Voivodeship) the unemployment rate among this age group is higher than the national average (ranging from 23.7% in Warmińsko-Mazurskie Voivodeship to as much as 35.4% in Podkarpackie Voivodeship, with the national average amounting to 23.7% in 2010).

At the same time, the value of employment rate among young people in all voivodeships of the macro-region remained lower than the national average (in 2010, it ranged from 19.9% in Podkarpackie Voivodeship to 24.1% in Świętokrzyskie Voivodeship, as compared to the national average of 26.3%). Low professional activity among young people is to a certain extent caused by the fact that they continue their education at tertiary level. On the other hand, high unemployment rates among young people indicate that persons willing to participate in the labour market cannot

86 Cf. Społeczeństwo Informacyjne [Information Society], CSO, Warsaw, 2012.

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find a job, which leads to the outflow of labour resources to urban centres located outside of Eastern Poland (mainly Warsaw, Krakow and Tricity), which offer more job and training opportunities, and thus make it easier to undergo retraining.

The so-called NEET group, i.e. young people not in education, not in employment and not undertaking any form of training, can also be identified in Eastern Poland87. Persons leaving education early, as well as persons with higher education, women, and professionally inactive (to a larger extent than the unemployed) are especially at risk of joining this group. This situation may be a consequence of the deficit of job offers adjusted to the skills of young people, as well as difficulties in entering the labour market experienced by young women, and the lack of job offers which would allow young people to gain initial experience, necessary to obtain further employment.

3.3.3. Graduates

According to available data, graduates who are looking for a job for the first time constitute a group facing particularly significant difficulties on the macro-regional labour market. Persons without any kind of job experience constitute ca. 25% of the total number of the unemployed registered in Eastern Poland, i.e. 5.1 percentage points more than the national average. The worst situation can be observed in Lubelskie Voivodeship, where persons without any job experience constitute more than 1/3 of the unemployed; the percentage of persons without any job experience was lower than the national average only in Warmińsko-Mazurskie Voivodeship. It should be noted that this phenomenon may result from the lack of correlation between the graduates’ profile and the structure of demand on the labour market, as well as from a low level of professional activity of young people during their education (in 2010, the percentage of persons who were professionally inactive due to the fact that they have taken up education amounted to 24.9%, as compared to the national average of 22.1%). As a consequence, at the moment of entering the labour market graduates have no experience on the basis of which the employers could assess their actual productivity and usefulness, and offer them employment.

3.3.4. Persons aged 55+ and women

According to the results of an analysis of employment indicators, aside from Warmińsko-Mazurskie Voivodeship, the level of employment of both women and persons aged 55+ in the macro-region is relatively high in comparison to other parts of the country88. It should be noted, however, that this situation is not a

87 Cf. Młodzież w 2011 [Young People in 2011], Chancellery of the Prime Minister, Warsaw, 2012.88 In 2010 the rate of employment of women aged 15+ in Eastern Poland amounted to 43.7%, as compared to the national average of 43.4%. The rate of employment of persons aged 55+ in Eastern Poland macro-region amounted to 20.8%, as compared to the national average of 19.2%.

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consequence of a particularly favourable position of these groups on local labour markets and their lack of difficulties in finding a job, but is rather a result of their over employment in small farms.

In the case of women, the institutional setting providing an opportunity to reconcile professional and family life, in particular the availability of day care centres and pre-school infrastructure, constitutes an important factor which has an impact on decision of women to undertake employment. Eastern Poland is characterised by low level of availability of care institutions for young children up to 3 years of age (day care centres, child clubs, daily carers, nannies)89.

The number of pre-schools90 per 100 thousand persons in all voivodeships of the macro-region remains significantly below the national average (ranging between 15 in Podlaskie Voivodeship and 21 in Podkarpackie Voivodeship, with the national average amounting to 23). The small number of pre-schools is accompanied by low number of children participation in pre-school education – in Eastern Poland, only 45% of children aged 3–6 attend pre-school, i.e. 10 percentage points less than the average for Poland. This situation is caused by the inadequate pre-school offer (in particular in rural gminas – in 2010 as much as 43% of them did not have any pre-school establishment), as well as by relatively high financial costs of children pre-school attendance, by technical difficulties in running this kind of establishments in areas characterised by scattered settlement, and by a more traditional form of child-rearing within multi-generational families.

89 As of 31 December 2012, the percentage of children up to 3 years of age covered with various forms of care for young children in the voivodeships of macroregion amounted to 3.3% (it ranged from 2.7% in Świętokrzyskie Voivodeship to 4.0% in Podkarpackie Voivodeship, with the national average amounting to 4.5%).90 Pre-schools, including special pre-schools, data as of the beginning of the school year (30 September, LDB, CSO,) www.stat.gov.pl).

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4. TRANSPORT AND ELECTRICITY INFRASTRUCTURE IN THE EASTERN POLAND MACRO-REGION – A DIAGNOSIS

Poland is located peripherally in relation to major European Union centres of economic potential, and it is characterised by a low level of communication accessibility against the EU as a whole. In 2007, the density of road network in Poland was 68 km per 10 thousand inhabitants, with the EU average amounting to 114 km. The railway network is relatively better developed: in 2008, 5.1 km of railways per 10 thousand inhabitants was recorded, and this figure was higher than the EU average (4.3 km).

Map 13: Density of motorway and railway network in Europe in 2008.

The length of railway lines, 2008. UE–27 indicator = 100.

Combined indicator connected with popula�on and area. Es�mated condi�ons for BE, IE, AT, PT, UK: 2007.

Sources: Eurostat, DG Mobility and Transport, Eurographics, TeleAtlas, REGIO-GIS.

< 80.3 125.6–155.7

103.1–125.6 >= 186,9

500 km0


The above map is only of illustra�ve nature and does not impair the status or sovereignty over any territory covered by it.

80.3–103.1 155.7–186.9

The length of motorways lines, 2008. UE–27 indicator = 100.

Combined indicator connected with popula�on and area. Es�mated condi�ons for IT, PT, St: 2007; GR: 2004.

Sources: Eurostat, DG Mobility and Transport, Eurographics, TeleAtlas, REGIO-GIS.

< 10

50–100

100–150500 km0


The above map is only of illustra�ve nature and does not impair the status or sovereignty over any territory covered by it.

10–50

150–250

No data

>= 250

Source: the European Commission, Directorate-General for Regional and Urban Policy.

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The level of potential accessibility91 in Poland is clearly lower than in Western Europe, as indicated by the results of a complex study92 on accessibility. Middle Pomerania and Eastern Poland are in the worst situation. Simulations presenting a more even and unified distribution of motorways and an increase in the efficiency of railway connections show that Poland, and in particular Eastern Poland, would be placed among a group of regions which could benefit the most from such changes, becoming thus more attractive for undertaking and pursuing investment activity.

Map 14: A potential increase in the accessibility to road and railway transport, the scenario assuming a high speed with regard to the current situation93.

Poten�al increase in road transport accessibility – scenario of high speed with regard to the current situa�on.

Source: DG Regional and Urban Policy.increase in %

< 15

30–45

15–30

45–60

60–75

90–105

75–90

>= 105500 km0


Poten�al increase in road transport accessibility – scenario of high speed with regard to the current situa�on.

Source: DG Regional and Urban Policy.increase in %

< 30

45–60

30–45

60–70

70–80

90–10

80–90

>= 100500 km0


Source: Fifth report on economic, social and territorial cohesion, the European Commission, 2010.

The lack of a coherent network of connections, and often unsatisfactory technical condition of a considerable part of transport infrastructure, resulting from a long-term underinvestment, are two key problems faced by the country as a whole, though with different severity. For this reason, the safety of road users and railway passengers is much lower than on average in the EU, as proven by the fact that the rate of road fatalities in Poland is twice as high as the EU average (143 fatalities per one million inhabitants in 2008) and that in 2009 railway fatalities in Poland

91 Potential accessibility indicates the accessibility of all travel destinations possible.92 Spiekermann K., Schurmann C., 2007, Update of selected potential accessibility indicators. Final report, Spiekermann & Wegener, Urban and Regional Research (S&W), RRG Spatial Planning and Geoinformation.93 Read more in: Fifth report on economic, social and territorial cohesion, the European Commission, 2010.

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Transport and electricity infrastructure in the Eastern Poland macro-region – a diagnosis

constituted Ľ of all such cases in the EU. Only air transport infrastructure is relatively modern and diverges from European standards to a much lesser extent.

Apart from poor transport accessibility, the electricity infrastructure of Poland is insufficient, both in terms of quantity and quality, which translates into low investment attractiveness of the country, against the EU background. Much lower – compared to Western Europe countries – saturation with transmission networks proves that Poland is lagging behind in development. The domestic electricity system suffers from deficient cross-border connections, preventing higher energy flows on international level, and limiting the possibilities to establish a unified European network.

Map 15. The plan of electricity transmission network in a part of Europe.

Source: II Report on the impact of legal regulations on the conditions for exploitation and extension of energy industry line infrastructure, crucial for domestic energy security, Agreement on cooperation in developing new legal solutions to facilitate infrastructure investments, Warsaw, March 2010.

In comparison to the EU, Polish electricity system is characterised by outdated technologies, poor technical condition of power units, depreciation of transmission and distribution network (on average, actual depreciation of energy networks is between 70–80%) and a high level of failure rate (over 50 thousand kilometres of medium voltage lines and over 150 thousand kilometres of low voltage lines urgently require modernisation). This results in network energy losses which in 2011 amounted to 8.5% in Poland, with the EU–15 average of 5.7 %.

The electricity sector in Eastern Poland, like in the remaining parts of the country, is specific compared to other European countries, its distinctive feature being not

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only the distance infrastructure, but also the dominant position of hard coal in the structure of electricity production. On the one hand, this fact provides some energy independence resulting from the use of domestic natural resources, on the other hand, however, it entails considerable CO2 and dust emissions to the environment (in 2010, solid fuels made up over 80% of the initial energy production in Poland, with the EU–27 average at 20%). Lubelskie Coal Basin, located in Eastern Poland – and one of the three coal basins in the country – comprises of hard coal viable deposits amounting to 21.5 % of the overall domestic resources.

The fact that Eastern Poland is remote from domestic and European economic centres, with major macro-regional urban centres being relatively weak, and in view of poor communication infrastructure, creates a barrier for spreading development and for effective enforcement of macro–regional development potentials which may have a considerable impact on boosting the competitiveness of this region. The insufficient internal accessibility, in turn, limits the possibilities to use endogenous resources (among others the human capital) effectively and for creating an internal cooperation network to maximize economic benefits, as reflected by a lower cohesion of the macro-region and by its worse development perspectives. Lagging behind in development of communication and electricity infrastructure make the marginalisation of the macro-region permanent, thus hindering the possibility to extend over it the beneficial influence of better developed centres, and to stimulate development processes on a durable basis.

Factors, typical of Eastern Poland, that have specific consequences for undertaking and implementing infrastructure investments include – apart from a very low population density – a considerable percentage of legally protected areas (approximately 40% of the area of macro-region), which largely increases the costs of and considerably prolongs the investment process.

4.1. External regional transport accessibility

Major cities of Eastern Poland are poorly integrated with domestic population system, in particular with the metropolises located beyond the macro-region, thus reducing the possibility to spread the development incentives. The time necessary to travel, both by railway and by road, between voivodeship capital cities in the macro-region and the closest big centres (over 0.5 million inhabitants) diverge from European standards94. The best integrated city is Kielce, followed by Lublin and Olsztyn, whereas the situation in Białystok and Rzeszów is the worst in this regard95.

94 For railway transport, the shortest travel time was reported between Kielce and Krakow, Katowice and Warsaw. For car transport, from Kielce one can travel in under 2.5 hours to Krakow, Katowice and Łódź. Other regional centres of Eastern Poland report acceptable travel time only to one large city (namely, Białystok and Lublin to Warsaw, Rzeszów to Krakow, and Olsztyn to Gdańsk).95 Cf. Komornicki T., Dostępność transportowa Polski Wschodniej [Transport accessibility of Eastern Poland], Warsaw 2011.

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Map 16. Spatial diversity of the Inter-sectoral Transport Accessibility Indicator (WMDT96) in 2010.

Overall current status0 50 100 200 km

0.20 0.25 0.30 0.35 0.40 0.45 0.50 0.55

150

Source: on the basis of data provided by IGiPZ PAN (Institute of Geography and Spatial Organization of the Polish Academy of Science).

In general, potential accessibility of Eastern Poland is low. All analysed voivodeships (apart from Świętokrzyskie Voivodeship) are characterised by a distinctively lower level of Inter-sectoral Transport Accessibility Indicator (WMDT) than the national average – between 77.1% of the national average in Warmińsko-Mazurskie Voivodeship and 82.3% in Podkarpackie Voivodeship. A relatively better accessibility characterises those areas of the macro-region which are located closer to the biggest metropolises of the country and to infrastructure allowing to travel at higher speed to Warsaw, Krakow, Metropolitan Association of Upper Silesia, and Gdańsk. This gives advantage to nearly whole of Świętokrzyskie Voivodeship, the western part of Podkarpackie Voivodeship (which to a certain extent already is a beneficiary of the A4 motorway, and has at its disposal Rzeszów–Krakow railway line in good technical condition, as well as the Rzeszów-Jasionka airport), the south-western part of Warmińsko-Mazurskie Voivodeship, and the north-western part of Lubelskie Voivodeship.

96 Inter-sectoral Transport Accessibility Indicator (WMDT) – a synthetic indicator, developed by Institute of Geography and Spatial Organization of the Polish Academy of Science, which takes into account 12 social and economic variables, such as, inter alia, the number of population, the number of employed, the number of farms, the number of students, the number of overnight stays, or production sold of the industry (Komornicki T. et al., 2010).

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The low communication accessibility of the macro-region is also caused by a limited access to air infrastructure connected with the lack of international air connections (with the exception of two airports located in Podkarpackie and Lubelskie Voivodeships). In the case of Podlaskie and Warmińsko-Mazurskie Voivodeships, the time necessary to reach the closest airport overland exceeds 120 minutes. The functioning of two airports, i.e. in Rzeszów and in Lublin, should be assessed positively only in terms of accessibility to air transport infrastructure in the south-eastern part of the macro-region, and mainly in the catchment area of these airports (i.e. the area covering the population residing in the neighbourhood of the airport with overland travel time to the airport under 120 minutes). Therefore, considering the area of Eastern Poland as a whole, one should assess the accessibility to air transport infrastructure as insufficient.

Map 17: Accessibility to passenger flights in 2006.

Accessibility to passenger flights, 2006Cumulated daily number of passenger flights availablewithin 90 minutes of travel by road

0–10

11–250

751–1000

501–750

251–500

1001–1500

1501–2000

3001–3614

2501–3050

2001–2500

travel �me to nearest airport > 90

no data

Airport

500 km0


Source: ESPON.

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Insufficiently developed and poorly integrated transport infrastructure (road, railway and air) hinders the transfer of know-how and makes it difficult to strengthen the functional links between Eastern Poland and centres from outside of the macro-region serving to spread development97. This is important, as from an analysis of organisational links between enterprises and of ownership links between companies it appears that development impact of the cities of Eastern Poland is not very strong, compared to the remaining part of the country. Urban centres in the macro-region – apart from voivodeship cities – are relatively weak and their involvement in national and international development processes is very limited, with Eastern Poland remaining typically at the cross-roads of influence of Warsaw and of major urban centres in Belarus and Ukraine, especially Minsk and Lviv.

The problem of poor transport accessibility of Eastern Poland was identified in the EU financial perspective 2007–2013, resulting in the allocation of a considerable amount of European cohesion policy funds (PLN 18.6 billion98) to improve the transport infrastructure in this area. Thanks to the actions undertaken so far99, 2263.8 kilometres of national roads were made available for use, including 701.5 kilometres of motorways and 808.1 kilometres of expressways. Currently, 803.5 kilometres of national roads are under construction, out of which 47.25% (379.9 kilometres) in Eastern Poland voivodeships100. After finalising the currently ongoing road investments, the potential transport accessibility of the macro-region will increase – Inter-sectoral Transport Accessibility Indicator in Eastern Poland will increase from 2.5% to 5.5%, with the value for the country as a whole at the level of 5.1%. Changes that will result from finalising the currently ongoing railway investments will be more moderate, since the scale of road investments is larger and the performance of road freight transport is relatively higher than of rail freight. Railway investments (even the large ones), unlike road investments, bring about relatively local or linear effects in terms of changes in accessibility, whereas the effects of accessibility improvement resulting from road investments, due to the so called network effects and the density of road network, are visible on a much larger area.

97 Śleszyński P., Czapiewski K., Kozak M., Znaczenia ośrodków miejskich oraz ich hierarchicznych powiązań dla regionalnego i lokalnego rozwoju ekonomicznego i społecznego Polski Wschodniej [The significance of urban centres and their hierarchic links for economic and social development of Eastern Poland at regional and local level], Warsaw 2011.98 The value of projects funding based on funding agreements concluded under NSRF 2007–2013 – status as of 28 August 2012.99 Data as of 22 April 2013.100 According to the data provided by the Ministry of Transport, Construction and Maritime Economy, as of 22 April 2013, the highest number of investments are located in Podkarpackie Voivodeship (172.4 kilometres). Relatively less investments are under construction in the following voivodeships: Lubelskie (76 kilometres), Podlaskie (65.3 kilometres), Świętokrzyskie (39.4 kilometres), and Warmińsko–Mazurskie (26.6 kilometres).

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Map 18: Changes in the potential accessibility of inter-sectoral transport accessibility indicator resulting from the ongoing investments (map A refers to motorways and expressways under construction, map B – to projects that are being implemented with respect to railway infrastructure).

Change in the value of inter-sectoral transport accessibility indicator (in %):

A B

0

0 0.20.1

0.5 1.0 2.0

2 5 10 20

Source: T. Komornicki, P. Rosik, M. Stępniak, Dostępność transportowa w Polsce Wschodniej, [Transport accessibility in Eastern Poland], Warsaw 2011.

The improvement of accessibility resulting from road network investments will be the highest in Podkarpackie Voivodeship (the construction of A4 motorway), which will be the only region in Eastern Poland with inter-sectoral transport accessibility indicator gain higher than the national average (over 5%). In the coming years, the most moderate changes will be seen in the area of Masuria (especially in the northern part of the region, located at the border with Kaliningrad Oblast), Lower Beskids and the whole Świętokrzyskie Voivodeship, as well as in the borderland of Świętokrzyskie, Podkarpackie and Lubelskie Voivodeships.

As regards railway transport, the most significant changes will be visible in Warmińsko-Mazurskie Voivodeship (thanks to the investments in railway line E65/C-E 65 in Warsaw–Gdynia section), Podkarpackie Voivodeship (modernisation of railway line E 30/C-E 30 in Krakow–Rzeszów section), Lubelskie Voivodeship (modernisation of railway line E 20/CE20 in Siedlce–Terespol section), whereas the least significant changes will take place in Świętokrzyskie and Podlaskie Voivodeships.

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4.2. Intra-regional accessibility

A considerable barrier for a full exploitation of endogenous potentials of the macro-region is poor intra-regional accessibility of this area, demonstrated mainly by insufficient accessibility to voivodeship centres, i.e. places in which the most important administrative, scientific and economic functions are concentrated in the macro-region, including also public services. Half of the population of Eastern Poland live within the isochrone of 60 minutes from voivodeship capital cities, which often corresponds to the size of labour market, and approximately 55% of all enterprises of the macro-region, 70% of which are large enterprises, have their registered offices there.

The longest travel times necessary to reach voivodeship centres are observed in Warmińsko-Mazurskie and Podkarpackie Voivodeships, which results from both infrastructure underdevelopment, and physical as well geographic features of these regions. There are four integral areas poorly accessible from voivodeship capital cities within the entire analysed area (external peripheries: north-eastern part of the borderland between Warmińsko-Mazurskie and Podlaskie Voivodeships; the borderland between Podlaskie and Lubelskie Voivodeships (Bialski Poviat and southern parts of Siemiatycki Poviat); south-eastern part of Lublin Voivodeship with a part of Lubaczowski Poviat in Podkarpackie Voivodeship; Bieszczady Mountains and Lower Beskids).

Map 19: Typology of time-related transport accessibility to centres concentrating various kinds of services in Poland

The assessment of �me-related spa�al accessibility to different (service) centres of social infrastructure concentra�on.

Acknowledged limits of sa�sfying and unsa�sfying �me accessibility of individual

car transport to the closest loca�on to:

voivodeship centres: 60 minutes;municipal centres (with the capital ci�es of the former voivodeships): 40 minutes;

poviat centres: 20 minutes;

Isochrones of travelling to Warsaw

Borders of market areas of voivodeship ci�es

Developed by the Ins�tute of Geography and Spa�al Organiza�on of the Polish Academy of Science, under the direc�on of P. Śleszyński, for the Ministry of Regional Development.

0

0 0 10 15 20 25 30 35 40 45 50 55 minutes

150 200 km10050

Isochrones of travelling by car to poviat city centres

W<60', G<40', P<20'

W<60', G>40', P<20'

W<60', G>40', P>20'

W<60', G<40', P>20'

W>60', G<40', P<20'

W>60', G>40', P<20'

W>60', G>40', P>20'

W>60', G<40', P>20'

Source: Committee for Spatial Economy and Regional Planning, Polish Academy of Sciences (KPZK) 2030.

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Inadequate quantitative and qualitative status of transport infrastructure inside the macro-region is one of the reasons hindering the access to major macro-regional labour markets, as well as to public services located in voivodeship and sub-regional centres. From the studies carried out101, it results that rural and poorly urbanized areas of Eastern Poland are characterised by low accessibility to public services guaranteeing participation in the ongoing development processes.

Apart from a low accessibility to voivodeship centres, the macro-region is characterised by insufficient transport links between these centres, which reduces the possibility for development and for intensifying economic cooperation within the macro-region.

4.3. Electricity infrastructure

Eastern Poland is one of the most underinvested areas of the country with respect to energy infrastructure, and it is characterised by a negative energy balance. This means that in the macro-region – with the exception of Świętokrzyskie Voivodeship – energy consumption exceeds its production. This situation is a long-term consequence of the decisions made in the 50s and 60s of the 20th century on the location of production capacities, on the basis of which power plants were constructed mainly in the southern and central part of the country. The density of electricity networks in the macro-region is low, particularly in its north–eastern part, where it is the lowest in the country.

Map 20: Electricity infrastructure in Poland

0

Scale: 1: 2 500 000

Electricity consump�on at low voltage per 1 inhabitant (2010, according to poviats).

Installed power(2008/2009) Power sta�ons:

Substa�ons:Transmission grids:

Submarine technical installa�ons:

78

4400 MW

400

5010

1-5 MW

750 kV switching and switching-conver�ng sta�onsinput sta�ons at power sta�ons400 kV

220 kV

exis�ng planned

Constant current cable 450 kV

Developed by the Ins�tute of Geography and Spa�al Organiza�on of the Polish Academy of Science, under the direc�on of P. Śleszyński, for the Ministry of Regional Development.

Other submarine technical installa�ons

hydroelectricpower plants in heat and power sta�ons

wind<1 MW(selected)

205

100200300

1000

thermal (brown coal)

thermal (hard coal)

electricity produc�on in conven�onal heat and power sta�ons (coal, mazout, oils)

gas

hydroelectric (pumped-storage and water storage with pumping power sta�ons)

hydroelectric (�dal and water storage power sta�ons)

wind

Small power sta�ons

1493 kWh1000800700600500

25 7550 100 km

Source: developed by Institute of Geography and Spatial Organization of the Polish Academy of Science.

101 Cf. National Spatial Development Concept 2030 (NSDC 2030).

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Apart from insufficient number of transmission and distribution networks, a major problem in the macro-region is the lack of back-up power supply, in case there is a breakdown of power supply line. The electricity infrastructure in Eastern Poland (especially in Warmińsko-Mazurskie, Podlaskie and Podkarpackie Voivodeships) is characterised by a high degree of infrastructure overexploitation – on average, the age of a substantial number of elements constituting the electricity infrastructure is over 30 years. Medium and low voltage grids in non-urbanized areas are in the worst condition, with electricity facilities built in the 50s and 60s of the 20th century. In consequence, these areas are characterised by a much lower, compared to the rest of the country, quality of parameters of generated electricity, and also by an increased failure rate, as well as by limited possibilities for connecting new receivers. Additionally, in Eastern Poland macro-region, due to fragmentation of building developments and of receivers, there are very long stretches of lines within medium and low voltage grids, which may cause voltage drops at final receivers and substantial industrial losses. The above-mentioned phenomena have a negative impact on the investment attractiveness of this area and it create a barrier for development of entrepreneurship, as well as for intensifying innovative processes.

Barriers for the development of electricity networks in Eastern Poland include first of all financial, social and environmental limitations, as well as low investment profitability for energy distributing enterprises. The latter affects in particular the rural areas as delivering electricity to rural receivers requires over four times longer line stretches than is the case for urban receivers, if the levels of energy consumption are similar. A separate, yet equally important issue are legal constraints connected with the possibility to implement new line investments and to modernise the existing electrical equipment.

Underdeveloped infrastructure in the macro-region, together with a higher than in the remaining part of the country increase in energy consumption in 2000–2007, result in Eastern Poland being particularly vulnerable to decreasing electric energy security. Apart from environmental limitations, an insufficient development of electricity infrastructure is also the reason why the potentials of renewable energy sources (RES) are used only to a limited extent in Eastern Poland, as reflected by a lower than in other parts of the country energy production from renewable sources per one inhabitant.

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Map 21: Changes in the electricity consumption at low voltage in Poland in 2000–2007.

Map 22: Production of energy from renewable sources in Poland (2008).

measured in GWh(gigawa� hour)

per 1 inhabitant in 2000–2007

230200

150100

50 0

-329Increase

Decrease

-50 50 100 200 300 400 500 694 kWh0

50 150100 200 km10

per 1 inhabitant (2008)

Total

800876 GWh

600

4002006 2007 2008

hydroelectricother renewable energy sources

200100

50207 80 150 428 kWh

Source: National Spatial Development Concept 2030 (NSDC 2030).

Source: National Spatial Development Concept 2030 (NSDC 2030).

The available analyses102 of renewable energy resources indicate a considerable diversity in RES potentials in individual voivodeships of Eastern Poland. Most of them have very good conditions to develop sources based on biomass (with the exception of Świętokrzyskie Voivodeship). The best wind conditions, in turn, are observed in Warmińsko-Mazurskie and Podkarpackie Voivodeships. The most beneficial conditions in terms of total hours of sunshine are observed in Lubelskie Voivodeship. A bit less attractive conditions, yet still allowing to successfully use solar installations, are observed in Świętokrzyskie Voivodeship, in the northern part of Podkarpackie and Podlaskie Voivodeships, and in part of Warmińsko-Mazurskie Voivodeship. Potential resources allowing to produce biogas are located in Podlaskie, Lublin and Warmińsko-Mazurskie Voivodeships.

102 Read more in: Określenie potencjału energetycznego regionów Polski w zakresie odnawialnych źródeł energii – wnioski dla Regionalnych Programów Operacyjnych na okres programowania 2014-2020; Rozwój sektora energetycznego OZE w Polsce Wschodniej– stan i perspektywy. [Determining the energy potential of regions in Poland with respect to renewable energy sources – conclusions for Regional Operational Programmes for the programming period 2014–2020; Development of RES energy sector in Eastern Poland – status and perspectives].

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5. SWOT ANALYSIS103

Strengths Weaknesses

1.Specialised production centres based on economic specialisations

2.Cohesion between research and economic specialisations

3.Positive trends as regards increasing the level of innovation in Eastern Poland (higher expenditure on research and development, success of individual research centres, infrastructure potential of universities and research centres, evolution of industry structure in Eastern Poland towards more advanced sectors)

4.Positive experiences in cooperation between voivodeships of Eastern Poland, resulting from joint undertakings implemented in the framework of the Operational Programme Development of Eastern Poland 2007–2013

1.Low labour productivity2.Low level of innovation and insufficient level

of development in the science sector3.Poor links of science and education with

economy4.High employment rate in underproductive

agriculture and insufficient absorption of labour market

5.Low quality of labour resources6.Low level of transport accessibility and low

technical condition of transport infrastructure7.Insufficiently developed functional links with

centres beyond Eastern Poland8.Weakness of voivodeship centres in Eastern

Poland which do not generate enough development incentives in their environment

9.Insufficient electricity infrastructure and low level of energy security

Opportunities Threats

1.Inclusion of Eastern Poland to networks of scientific mutual cooperation with leading centres in the country and abroad

2.Influx of external measures on targeted development objectives

3.Good perspectives for further increase in transport accessibility in Eastern Poland as a result of finalising investments implemented under 2007–13 financial perspective, and for starting new ones in the period 2014–20

4.Inflow of investors from outside Eastern Poland, undertaking innovative activity in the macro-region

1.An increasing development distance of Eastern Poland in comparison to the national average

2.Competitive pressure exerted by voivodeships from outside Eastern Poland and by foreign regions, resulting in the reduction of resources and lowering the investment attractiveness of Eastern Poland

3.Perceiving Eastern Poland, both in the country and abroad, as a peripheral region

4.Unfavourable demographic trends (progressing emigration from Eastern Poland of the most valuable, from the point of view of labour market and innovation development, population groups; ageing of the society), affecting the development perspectives of Eastern Poland

5.Low rate of changes in the traditional structure of the economy, unfavourable for improving the labour productivity and for strengthening the competitive position of Eastern Poland

103 The SWOT analysis was performed in line with the methodology described in: Planowanie strategiczne. Podręcznik dla pracowników administracji publicznej [Strategic planning. Guidebook for public administration staff], Warsaw 2012, p. 103-130.

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6. EASTERN POLAND IN 2020 – STRATEGIC VISION, CHALLENGES, AND DEVELOPMENT OPPORTUNITIES

Designing a strategic framework in order to effectively boost development processes requires the identification of key factors having an impact on the development of the macro-region, on conscious choice of areas where focused, coordinated public intervention, contributing to the achievement of targeted development objectives, should be implemented, as well as taking into consideration broader development conditionalities (national, European and global). According to a new regional policy paradigm104, the support for development of regions should be provided in an integrated and coordinated way (policy mix), based on a skilful use of regions’ endogenous potentials.

The analysis conducted for the purpose of revising the Strategy105 and concerning the determinants of differences in the level of development between the voivodeships in Poland made it possible to identify three key factors, decisive for the macro-region position: innovative potential, quality of resources, and infrastructure in place. A diagnosis of these areas allowed to understand better development opportunities and barriers in Eastern Poland. On the basis of the identified endogenous conditions, and taking into consideration the directions indicated in the EU and national strategic documents (especially counteracting marginalisation and participating actively in development), three complementary strategic lines of action were chosen, the implementation of which will boost development processes in the macro-region in the long run. The actions undertaken will also add to reversing unfavourable trends connected with migration outflows from the macro-region, especially of people with higher education, as well as on increasing the investment attractiveness of Eastern Poland.

The first opportunity to achieve this goal is to systematically raise the level of innovation of macro-regional economy, based on endogenous, leading, economic specialisations, and at the same time to strengthen the potential of science and research sector to create applicable innovative solutions and to enhance the potential of enterprises sector to absorb these solutions and use them commercially.

104 See: OECD studies; Krajowa Strategia Rozwoju Regionalnego [National Regional Development Strategy], the Ministry of Regional Development. More information on optimal ways of stimulating development processes in less developed regions can be found in: Europejska polityka spójności jako narzędzie wsparcia dla regionów borykających się z problemami rozwojowym. Publikacja pokonferencyjna [The European cohesion policy as a tool supporting regions facing development problems. Conference publication.], the Ministry of Regional Development, Warsaw 2012, p. 18–68.105 More information can be found in: chapter 1.2. of this Strategy.

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Eastern Poland in 2020 – strategic vision, challenges, and development opportunities

The second opportunity consists in activating labour resources and improving the quality of human capital in order to enhance social inclusion, especially of vulnerable groups, and to systematically improve and enforce the skills and competences of employees that would be able to act effectively in knowledge-based economy and generate additional development incentives.

The third opportunity to boost development processes in Eastern Poland consists in creating tight social and economic links with more developed environment, the existence of which is mostly conditioned by integrated and effective infrastructure of communication links, both external – with national growth centres - and internal, strengthening territorial cohesion of the macro-region. The development of transport and electricity infrastructure, accompanying the intensification of innovative processes and strengthening of human capital, is an essential measure contributing to the achievement of these objectives.

The strategic vision for Eastern Poland focuses on these three development opportunities which may contribute, to the highest extent and in the mid-term, to improving labour productivity and development position of the macro-region. Also the possibility to exert effective impact on identified areas with the use of regional policy instruments is important in the perspective up to 2020.

Any development activities undertaken in Eastern Poland should be implemented in line with the principle of sustainable development, in the manner contributing to qualitative improvement of natural environment, inter alia, by means of limiting harmful impact on the environment and on the protection of natural resources, caused by production and consumption, accounting for national, horizontal principles and measures involved in the adaptation to climate changes106. On the level of operational rationalisation of actions, the principle of level playing field will also be observed, which involves, inter alia, the obligation to plan specific measures counteracting possible inequalities with respect to a specific group of people or specific accessibility barriers which may cause social exclusion.

Strategic vision for Eastern Poland

Taking into account the above-mentioned conditionalities, and based on conclusions drawn from the analyses, the following strategic vision has been formulated of Eastern Poland in 2020:

106 These principles result from the Strategic action plan for sectors and areas vulnerable to climate changes up to 2020, prepared by the minister competent for the environment. Considering these principles at the level of operational rationalisation of activities indicated in the Strategy is essential if Poland is to achieve the objectives of climate mainstreaming.

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EASTERN POLAND IN 2020

Eastern Poland - a macro-region developing dynamically in line with the principle of sustainable development, gradually and systematically improving its development and competitive position, both in the country and in the European Union, which:

1. thanks to supra-regional endogenous specialisations of economy effectively competes in the country and abroad;

2. has at its disposal modern staff for knowledge-based economy, and effectively counteracts social exclusion;

3. is an area with accessible communication, characterised by territorial internal consistency.

It will be possible to implement this strategic vision by undertaking a number of concentrated and integrated actions within the framework of the following three essential, strategic areas: INNOVATIVENESS – LABOUR RESOURCES – INFRASTRUCTURE, which all aim at:

1. increasing the level of innovativeness of the macro-region by creating and enforcing competitive advantages based on endogenous economic advantages, and by strengthening the potential of science and research sector;

2. activating labour resources and improving the quality of human capital by strengthening the potential of modern staff and effectively counteracting exclusion on macro-regional labour market;

3. increasing the external accessibility and internal consistency of the macro-region, including major functional labour markets.

Interventions within the identified three strategic areas will contribute in the long run to achieving the main objective of the Strategy, i.e. to increasing labour productivity in all sectors of economy. This will help to change the employment structure (gradual reduction of employment in agriculture and increasing it in other economy sectors); this, in turn, will translate into an increase in income of the macro-region inhabitants. In this way, the restructuring processes of macro-regional economies will be boosted.

Another important effect that will be achieved thanks to such broadly directed strategic interventions will be a significant strengthening of major functional urban centres of Eastern Poland, which are crucial macro-regional labour markets and development centres, concentrating business and innovation as well as academic and research activities.

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7. KEY OBJECTIVE AND STRATEGIC LINES OF ACTION FOR EASTERN POLAND

Table 3. Scheme presenting strategic lines of action for Eastern Poland

Strategic vision

EasternPolandasamacro-regiondevelopingdynamicallyinlinewiththeprincipleofsustainabledevelopment,graduallyandsystematicallyimprovingitsdevelopmentandcompetitivepositioninthecountryandin

theEuropeanUnion,which-thankstosupra-regionalendogenouseconomicspecialisations–effectivelycompetesinthecountryandabroad;whichhasatitsdisposalmodernstaffforknowledge-basedeconomy,andwhicheffectivelycounteractssocialexclusion;itisanareawithaccessiblecommunication,characterisedby

territorial,andinternalconsistency.

Key objective

IncreaseinlabourproductivityinallsectorsofeconomyinEasternPoland

Strategic areas

Innovativeness Labourresourcesandthequalityofhumancapital Transportandelectricityinfrastructure

Strategies and lines of action

Buildingpermanentcompetitiveadvantagesbyactionswhichaimatincreasingtheleveloftechnologicaladvancementintheareaofleadingendogenous,supra-regional,economicspecialisations

StrengtheningthepotentialofscienceandresearchsectorinEasternPoland,alongwiththeenforcementoflinksandintensificationofcooperationbetweenkeyparticipantsofinnovationsystem

Counteractingexclusiononthelabourmarket

Strengtheningthepotentialofmodernstaffforknowledge-basedeconomy

OvercomingbarriersconnectedwiththeperipherallocationofEasternPoland

StrengtheningtheinternalconsistencyofEasternPoland

StrengtheningtheelectricenergysecurityofEasternPoland

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7.1. Innovativeness

Increasing the level of innovativeness of the economy of Eastern Poland is a key strategic challenge for systematic strengthening of competitive position of Eastern Poland voivodeships, both in Poland and abroad.

In order to achieve this objective, it is necessary to undertake in the mid-term a number of well coordinated and complex strategic actions, targeted at strengthening the key elements of innovation system.

At the level of macro-regional strategy, this objective is going to be implemented by means of:

I. concentrated support for building permanent competitive advantages through actions focused on increasing the technological level of advancement and innovativeness in leading endogenous, supra-regional economic specialisations; and

II. strengthening the potential of science and research sector in Eastern Poland with the enforcement of links and intensification of cooperation between key participants of the innovation system.

The character of innovative processes is complex and highly interactive, covering a broad array of disciplines and areas of activities, which in effect have an impact on the level of innovativeness of a given territory. Therefore, in order to effectively influence the process of innovation, it is necessary to use a set of instruments, affecting the key participants of this process (the so called policy mix), and taking into consideration regional specificities and conditionalities (Huebner, 2009). Effective implementation of such instruments will contribute both to better absorption of innovations emerging beyond the macro-region, and to strengthening the potential of enterprises and of science and research sector in Eastern Poland to generate their own innovative solutions.

7.1.1. Building permanent competitive advantages based on leading endogenous, supra-regional economic specialisations

Industry may play an important role in efficient and permanent stimulation of development processes in the macro-region and in boosting its innovativeness, whereas restructuring in agriculture progresses slowly, and the development of services – characterised by stronger dynamics in metropolitan than in non-urbanized areas – has relatively lower potential to initiate development processes covering entire Eastern Poland.

As a result of innovations and increased technological advancement in sectors determining economic specialisation of the macro-region, the added value of generated production and its quality will increase, thus contributing to an increase in the level of competitiveness of the whole sector and – consequently – of macro-regional economies. This is consistent with the approach promoted by the European Commission within the framework of the EU 2020 strategy and within the framework of Innovation Union flagship initiative which provides for improving innovativeness

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Key objective and strategic lines of action for Eastern Poland

and competitiveness based on endogenous potential of regions and industries already present in these regions - this applies to specialisations within one sector as well as to cross-sector actions allowing to achieve specific competitive advantage107.

Due to the fact that the whole macro-region is economically specialised, the long-term benefits will be obtained by enforcing specialisations based on agri-food sector and other leading economic specialisations of the macro-region, and specified in chapter 2.2.3. of the Strategy. The aim is to concentrate support on industries and places where development based on endogenous factors is observed, especially, where there already exists a sufficient critical mass in terms of concentration of enterprises, staff equipped with appropriate competences and skills, and relevant institutions accompanying them. Supra-regional support for developing such sectors and places towards systematic increase of their technological advancement and innovativeness will bring about better effects than creating advantages, based on new specialisations. It is crucial to search for possibilities to create and commercialise innovations on the border of traditional and advanced industries, e.g. in agri-food and biotechnology sector. Introducing modern, innovative solutions in industries constituting supra-regional economic specialisations should limit the harmful impact of industrial production on the environment and should contribute to a more effective protection of natural resources of Eastern Poland.

MENU OF ACTIONS

Building permanent competitive advantages based on leading endogenous, supra-regional, economic specialisations requires undertaking a number of concentrated actions, targeted at strengthening potentials and removing the identified barriers.

Such actions include:

I.1. supporting the development and implementation of innovative solutions in the areas connected with supra-regional economic specialisations (knowledge commercialisation), in particular within the framework of network cooperation model;

I.2. improving the framework conditions for innovative activities by increasing access to capital for enterprises, and by creating a system of financial incentives for innovative activities within supra-regional economic specialisations, as well as by enforcing a consultancy system;

I.3. supporting the establishment of innovative enterprises within supra-regional economic specialisations and of new high quality jobs;

I.4. strengthening links between participants of innovative processes, and improving their skills and competences (entrepreneurs, scientific centres, schools and universities, public administration, cultural institutions);

I.5. education fostering innovativeness and promoting innovative approaches.

107 The studies performed by OECD in all regions of the OECD member states (2012, Promoting Growth in All Regions, OECD Publishing) also show that in the regions characterised by lower labour productivity – such as Eastern Poland – the investments made to increase the technological advancement of the entrenched sectors and actions streamlining the absorption of external innovations may be more effective in the context of increasing the productivity and efficiency of regional economy than initiatives targeted at creating groundbreaking innovations, based strongly on scientific research (pp. 59–72).

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7.1.2. Strengthening the potential of science and research sector

In order to achieve this objective, it is necessary to support - on a long-term basis - the cooperation between regional scientific institutions to enforce and advance scientific specialisations as well as their cooperation with leading national and foreign centres to strengthen scientific potential and increase prestige and significance of scientific centres from Eastern Poland. Systematic inclusion of universities and scientific units from Eastern Poland in the network of links with strong partners in the country and abroad, especially in those industries in which the regions of Eastern Poland have already developed competences, is – next to enforcing human capital – an important element of activities favourable for generating, absorbing and transferring innovations and technology to enterprises.

Actions will be targeted at building links and intensifying research and didactic cooperation between academic and science and research centres, particularly taking into account the optimal use of infrastructure supported in the recent years from the EU funds.

An example of particularly desirable actions in the context of enforcing macro-regional potential can be cooperation between universities of the region in jointly creating complementary education offers, targeted at the macro-region as a whole and adjusted to its needs, by e.g. opening faculties and undertaking research projects in cooperation with universities in other voivodeships in the macro-region, as well as with leading centres in Poland and abroad – these will increase prestige of education and enhance development of scientific potential of Eastern Poland. Strengthening science and research centres, which create knowledge and drive technological changes, will contribute to improving the quality of education, and in the long-term will lead to expanding competences and skills of Eastern Poland inhabitants, as well as their educational aspirations, thus boosting innovative processes in the macro-region. The instruments to be used towards this end will cover building partnership links, creating new knowledge and enforcing its transfer through education and training, as well as development and further professionalization of innovative centres, and greater use of information technologies.

MENU OF ACTIONS Strengthening the potential of science and research sector requires undertaking concentrated actions, tailored precisely to the needs of regional economies. Such actions include:II.1. supporting cooperation in R&D sector in supra-regional and international dimension,

taking into account cross-border dimension; II.2. supporting transfer of knowledge (technology parks, excellence and competences

centres, technology transfer centres, special purpose entities);II.3. strengthening academic staff of scientific centres;II.4. supporting development of modern technologies (support for research).

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7.2. Labour resources and quality of human capital

The aim of all actions undertaken in the domain of labour market in Eastern Poland should particularly be leading to the situation in which labour resources are used in an optimal way, contributing to increasing labour productivity in individual economy sectors in the macro-region, and in consequence enhancing its development and competitive position. Thanks to these actions, the inhabitants of Eastern Poland – equipped with adequate skills and qualifications, well matched to the needs of employers in the macro-region or allowing them to start own business activity – should have a possibility to find employment on macro-regional labour market which, in turn, will allow them to fulfil their individual professional aspirations and to stay in Eastern Poland. Coordinated actions targeted at complex strengthening of labour resources will facilitate reversing the unfavourable trends connected with migration outflow of young people with higher education, which has a negative impact on development perspectives of the macro-region. Appropriate investment in human capital should contribute in the long-term to changing the structure of manufacturing and employment, and at the same time to creating optimal conditions for effective activation of labour resources and to boosting development processes in conditions of knowledge-based, competitive economy.

Activation of unexploited labour resources and improving the quality of human capital for knowledge-based economy is a key strategic challenge, as far as systematic strengthening of competitive and development position of Eastern Poland voivodeships is concerned.

In order to implement this objective it is necessary, in a mid-term, to undertake a number of well coordinated and complex strategic actions, targeted at improving the situation on macro-regional labour market.

At the level of macro-regional strategy this aim will be implemented by means of:

I. counteracting exclusion on the labour market; and

II. strengthening the potential of modern staff for knowledge-based economy.

7.2.1. Combating exclusion on macro-regional labour market

Actions for professional activation of economically inactive people and people in unfavourable situation on macro-regional labour market will focus on systematic increase of their educational activity, so as to equip them with qualifications and skills necessary to find and maintain employment. Increasing the mobility of employees and job seekers, understood as their willingness and ability to raise qualifications and/or change profession108, is a strong challenge. Given the

108 Kabaj M., Modele przeciwdziałania bezrobociu. Przeszłość i przyszłość [Models of combating unemployment. The past and the future], in: Praca i polityka społeczna w perspektywie XXI wieku [Work and social policy in the perspective of 21 st century], edited by M. Kabaj, Warsaw 1998.

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variability of situation, typical for the labour market, people participating in the labour market should possess skills allowing them to quickly and effectively find job or retrain.

It is necessary to carry out activities aimed at strengthening social capital by enhancing in the inhabitants of Eastern Poland the competencies for building social trust and abilities to cooperate, and by promoting flexible and creative attitude towards the situation on the labour market.

It is also necessary to take measures aimed at creating favourable environment for development of social economy entities and social enterprises. Thanks to their roots in local community, these entities can contribute to strengthening and stabilizing local and regional development as well as to increasing the role of social capital, to facilitating the process of entering the labour market, and to improving socioeconomic situation of people at risk of social exclusion.

It is also important to develop in present and future employees the key IT skills, media literacy, ability to communicate in a foreign language, social skills, including cultural skills, as well as to effectively promote and create appropriate conditions for the continuous upgrading of skills through various forms of education and training. In this context, popularising distance education (e-learning) is - in the face of significant dispersion of settlement network in the macro-region - the most effective way to raise professional skills of Eastern Poland residents.

It is also necessary to create a system of incentives for development of business and, in result, for creating new jobs, including in rural areas, in order to increase the absorption capacity of macro-regional labour market, and to create a real and attractive alternative for work in agriculture.

These actions can be enhanced by increasing the effectiveness of career counselling system for groups at risk of exclusion from the labour market, as well as by providing wide access to cheap, high-quality care services, conditioned by an appropriate level of social infrastructure development, so that responsibilities towards dependent persons (children, the elderly, the disabled) would not be associated with a long break in employment and the loss of skills. In addition, the popularisation and dissemination of jobs in the so-called flexible forms of employment, particularly including part-time work, will allow for combining work with study, and professional life with raising children or with care for elderly family members.

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MENU OF ACTIONS

Combating exclusion on the labour market requires a number of concentrated actions, including:

I.1. disseminating and raising the quality of various forms of distance education and promoting life-long learning

I.2. developing digital skills

I.3. developing social skills

I.4. developing incentive system for running economic activity and creating new jobs

I.5. improving the effectiveness of career counselling system, tailored to the needs of groups at risk of exclusion from the labour market

I.6. promoting flexible forms of employment and wide access to cheap, high-quality care services that allow for combining professional responsibilities with performance of family roles

7.2.2. Enhancing potential of modern staff for knowledge-based economy

In knowledge-based economy, gain from traditional resources is getting increasingly lower, its sources being, first of all, branches and sectors creating and using knowledge. In order to intensify the development processes in Eastern Poland macro-region in conditions of modern knowledge-based economy, the increased expenditure on innovation should be accompanied by enhancing the quality of human capital, which is a prerequisite for improving productivity. The activities carried out in this area should take into account the economic character of the macro-region, and should aim to develop priority skills and qualifications in the context of effective strengthening of competitive advantages of Eastern Poland, and increasing the attractiveness of macro-regional labour market for highly-skilled professionals, which will counteract the observed adverse phenomenon of “brain drain” and will encourage residents from outside to settle in this area. Highly-skilled staff will also constitute incentive for external investors to invest in the macro-region.

Actions enhancing the potential of modern staff should be aimed mainly at improving the effectiveness of career counselling system and adjusting educational offer to the needs of macro-regional labour market, to ensure that qualifications of employees and job seekers meet the expectations of employers. Initiatives in this area will contribute to increasing the quality and flexibility of labour force. It is also necessary to take actions aimed at strengthening the business potential of Eastern Poland residents, with a view to increase their abilities to undertake economic activity and create new jobs that raise the absorption level of macro-regional labour market.

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MENU OF ACTIONS

Enhancing the potential of modern staff for knowledge-based economy requires taking concentrated actions that precisely meet the needs of regional economies.

Such actions include:

I.1. adjusting education offer to the needs of macro-regional labour market – strengthening cooperation between vocational schools, universities and the business sector

I.2. improving effectiveness of career counselling system

I.3. promoting business attitudes and supporting business incubators, including academic ones

7.3. Transport and electricity infrastructure

Development of infrastructure that accompanies intensification of innovation processes and enhancement of human capital quality as one of basic instruments of regional and spatial policy is essential for preventing marginalisation of the macro-region, and fostering its competitive position in a longer period. Increasing internal cohesion as well as enhancing outer regional connections and energy security of the macro-region is a prerequisite for building functional connections and increasing investment attractiveness of the macro-region and for improving the quality of life through better access to public services and labour markets. Modern transport infrastructure will also allow rapid development of low-carbon means of transport in the macro-region, thus reducing the adverse effect of transport on the environment and maximizing the results of actions aimed at maintaining high quality of transport.

Removing infrastructural barriers, in addition to support for raising the level of innovation, enhancing the quality of human capital and mobilising the resources in the labour market, is a key strategic challenge in terms of systematic strengthening of competitive position of Eastern Poland in the country and abroad.

This objective requires a range of properly coordinated and comprehensive strategic actions in the mid-term that are focused on strengthening key elements of accessibility.

With regard to macro-regional strategy, this objective will be achieved through activities aimed at:

I. overcoming the barriers associated with peripheral location

II. enhancing internal cohesion of Eastern Poland

III. enhancing energy security of Eastern Poland

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7.3.1. Overcoming the barriers associated with peripheral location

Overcoming the barriers to development impulses between Central, Western and Eastern Poland, associated with peripheral location, will be possible mainly through strengthening transport accessibility of major urban centres (voivodeships cities) in the macro-region and including them in national and European transport networks, although the improvement of transport accessibility in Eastern Poland should also be achieved through investments in other regions, especially in Central Poland (the so-called inward links). The actions to be taken will release potential associated with the inflow of external capital, including foreign capital, for which low transport accessibility was one of major development barriers, resulting in low investment attractiveness of the macro-region.

The investment priority, both in road and rail transport, should be to strengthen the transport routes joining main Eastern Poland centres with the biggest cities in the country, in particular with Warsaw, Krakow and Tricity, which will foster the development of metropolitan functions of these cities, making them more attractive places to study, work and live. Good communication with other centres in Central Poland will enhance the transit role of Eastern Poland, and will connect its regional centres with Polish economic core, thereby increasing economic exchange and diffusion of innovative products.

As regards air transport, it is essential to improve regional and local accessibility to the existing airports109. Therefore, the investments made in land transport (road and rail) should also be aimed at proper communication with the network of functioning airports in a way enabling the extension of catchment areas to Eastern Poland.

MENU OF ACTIONS

Overcoming the barriers associated with peripheral location requires a range of concentrated actions aimed at enhancing the outer regional accessibility, including development of inward links outside Eastern Poland.

Such actions include primarily:

I.1. construction of highways joining major centres of Eastern Poland with the biggest cities in the country, in particular with Warsaw, Krakow and Tricity

I.2. improvement of railway accessibility of major centres of Eastern Poland with the biggest cities in the country, in particular with Warsaw, Krakow and Tricity

109 See Wizja struktury transportu oraz rozwoju sieci transportowych do roku 2033 [The vision of transport structure and development of transport networks by 2033]. Vol. II, expert’s report prepared for the Ministry of Regional Development, p. 127.

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7.3.2. Enhancing internal cohesion of Eastern Poland

In order to achieve this objective it is necessary to take strategic actions focused on developing transport connections between major centres of Eastern Poland and on increasing transport accessibility to voivodeships centres, which will improve the accessibility of places offering a range of public services, thus increasing the quality of life of Eastern Poland residents. Enhancing transport accessibility inside the macro-region (both to urban centres and within functional areas) will also contribute to increasing the impact of cities in terms of everyday commuting to work (pendular mobility) which will allow greater integration of functional labour markets.

Accounting for lower population density and dispersed settlement network in Eastern Poland, overcoming communication barriers will be enhanced by actions aimed at maximizing the use of ICT network in terms of access to e-services, in particular public services, mainly through computerisation of public administration (e-government), health care system (e-health), education (e-education), and culture (e-culture). Increasing transport and ICT accessibility will provide smaller urban and rural centres with better access to larger cities, playing the role of innovation, knowledge, science and cultural centres, as well as of major markets of employment, education and medical care; this will translate into enhancement of development processes taking place in the macro-region as a whole.

MENU OF ACTIONS

Strengthening internal cohesion requires concentrated actions, tailored precisely to the needs of regional economies.


I.1. increasing transport accessibility to voivodeships capital cities, including in functional areas of labour markets

I.2. developing transport connections between major centres of Eastern Poland

I.3. developing low-carbon urban and agglomeration transport in major urban centres

I.4. increasing accessibility of high-quality public e-services

7.3.3. Enhancing energy security of Eastern Poland

Achieving this objective will be possible through the development and improvement of technical condition of electricity infrastructure in the macro-region, that is transmission grids of high, medium and low voltage. The electricity sector of Eastern Poland faces a challenge associated with the need to intensely upgrade production, transmission and distribution infrastructure, and consistently replace the old manufacturing base with modern units that meet environmental standards, including also their modernisation in terms of high cogeneration.

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In a longer term, these actions will contribute to building sustainable and competitive economy, which will strengthen the competitive position of industry and SME sectors in Eastern Poland.

These actions will also ensure more effective use of endogenous resources of the macro-region, greater energy savings during its distribution and transmission, as well as reduction of CO2 emissions. Better equipping the Eastern Poland macro-region with high-quality electricity infrastructure will allow for greater use of renewable energy sources, which will further decrease the macro-region dependence on external energy sources, thus increasing the level of energy security.

MENU OF ACTIONS

Strengthening energy security requires concentrated actions, tailored precisely to the needs of regional economies.


I.1. expansion and modernisation of high voltage grids

I.2. expansion and modernisation of low and medium voltage grids

I.3. increasing the share of renewable sources in electricity production

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8. TABLE OF INDICATORS110

The monitoring process is closely linked with choosing the directions of impact. Strategy for Socioeconomic Development of Eastern Poland until 2020 assumes improvement of the macro-region’s position in terms of development and competitiveness, based on coordinated actions implemented within three areas: innovation, labour force, and infrastructure. The table of indicators suggested below includes one indicator directly relating to the main goal (labour productivity relative to the country) and a number of indicators examining the impact of actions taken within the framework of the Strategy in the abovementioned three key areas for the macro-region’s development. It was agreed that the target values measuring the extent to which the goals set are achieved, have to be real, that is achievable, but at the same time they should be challenging. While establishing specific target values for detailed indicators, it was assumed that - considering trends from the previous years – it would be a success to limit the divergence between Eastern Poland macro-region and the rest of the country.111

Table 4: Table of indicators for monitoring the Strategy for Socioeconomic Development of Eastern Poland until 2020

Indicator UnitBase- line year

Frequency of indicator

measurement

Eastern Poland111 Poland

Value in 2022 (unless otherwise

specified)

Indicator for the main goal of the Strategy

Gross value added per 1 employee in Eastern Poland relative to Poland in total

2010 annual, local data

bank

0.�� 90193.0 0.76

Innovation

Percentage of innovative companies in the industry

Calculation method:Numberofinnovativecompaniesintheindustry(totalforEasternPoland)/numberofenterprisesintotal(totalforEasternPoland)

% 2011 annual, local data

bank

1�.1 16.1 18.1

110 Catalogue of Strategy monitoring indicators together with estimation of their target values was developed during the ex ante evaluation of the draft revised Strategy performed between IV quarter of 2013 and I quarter of 2013 by ECORYS for MRD.111 Average share for all five voivodeships of Eastern Poland.

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Table of indicators



measurement



specified)

Percentage of industrial companies that cooperated in terms of innovation activity Calculation method:Numberofindustrialcompaniescooperatingintermsofinnovationactivity(totalforEasternPoland)/numberofenterprisesintotal(totalforEasternPoland)


bank

�.� 5.5 VEP=VPL112

Share of net turnover of innovative products in industrial companies in the total net turnover Calculation method:Totalnetturnoverofinnovativeproducts(totalforEasternPoland)/totalnetturnover(totalforEasternPoland)


bank

�.� 8.9 VEP>VPL–1.2pp.(reductionofhalf

ofthedifferenceinpercentagepoints

relativetothecountry)

Share of persons employed in R&D in the economically active population Calculation method:TotalofpersonsemployedinR&D(totalforEasternPoland)/totalofeconomicallyactivepopulation(totalforEasternPoland)


bank

0.� 0.7 VEP>VPL–0.1pp.(reductionofhalf



Labour force

Long-term unemployment rateCalculation method:numberofunemployedwithoutworkformorethan1 year(totalforEasternPoland)/numberofeconomicallyactivepopulation(totalforEasternPoland)

% 2011 annual, Central

Statistical Office

�.� 3.0 VEP<VPL+0.5pp.(reductionof

differenceinthepercentagepoints)

Adults participating in education and training Calculation method:numberofpersonsbetween25–64yearsofageineducationortraining(totalforEasternPoland)/numberofpersonsinthesameagegroup(totalforEasternPoland)

% 2011 annual, Eurostat

�.� 4.5 VEP>VPL–0.3pp.(reductionofhalf



112 VEP means the indicator value for Eastern Poland, VPL – indicator value at national level.

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measurement



specified)

Employment indicator for persons over 15 years of age

Calculation method:numberofemployedpersonsover15yearsofage(totalforEasternPoland)/numberofpopulationinthesameagegroup(totalforEasternPoland)

% 2012 annual, Central

Statistical Office

��.2 50.2 50.6

Entities newly registered in the REGON register per 10 thousand of population (average from 201� until the target year)

Calculation method:Average(from2014untilx)numberofentitiesnewlyregisteredintheREGONregister(totalforEasternPoland)/averagenumberofpopulation(from2014untilx)(totalforEasternPoland)*10thousand

Itwassuggestedtousetheaveragefromtheperiodduetothefactthatthevalueisverychangeableinsingleyears.

items 2011 annual, local data

bank

�0.� 90 74

Infrastructure

Hard surfaced roads per 100 km2

Calculation method:Lengthofhardsurfacedroads(totalforEasternPoland)/100km2ofthevoivodeshiparea(totalforEasternPoland)

km/km2 2011 annual, local data

bank

��.� 89.7 VEP>VPL–4.95pp.(reductionofhalf



Percentage of enterprises receiving orders by computer networks (websites, EDI systems)

Calculation method:numberofenterprisesreceivingordersbycomputernetworks(websites,EDIsystems)(totalforEasternPoland)/numberofenterprises(totalforEasternPoland)


bank

�.1 10.9 15

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Table of indicators



measurement



specified)

Percentage of enterprises placing orders by computer networks (websites, EDI systems)

Calculation method: numberofenterprisesplacingordersbycomputernetworks(websites,EDIsystems)(totalforEasternPoland)/numberofenterprises(totalforEasternPoland)


bank

1�.� 19.3 24.5

Length of motorways Km 2010 annual, Ministry of Transport,

Building and Maritime

Economy/GDDKiA

0 857 170(in2020)

Length of express roads Km 2010 annual, Ministry of Transport,


Economy/GDDKiA

�� 674.7 1059(in2020)

Connections of voivodeship capitals by express roads or motorways

Number 2010 annual, Ministry of Transport,


Economy/GDDKiA

0/� 6/18 5/5(in2020)

Number of voivodeship capitals connected by railway lines, modernised at least to the extent which allows the passenger trains to travel at the average speed of 100 km/h

Number 2010 annual, Ministry of Transport,


Economy/PKP PLK

0/� 4/18 5/5(in2020)

Electricity consumption per 1 million GDP relative to the country

GWh 2010 annual, Eurostat

��.� 100 97.3

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9. IMPLEMENTATION, MONITORING AND EVALUATION SYSTEM

9.1. Implementation system

Implementation system covers processes related to strategic planning and programme implementation that contribute to the achievement of the goals of the Strategy, as well as to Strategy monitoring and evaluation systems.

The system is based on institutions and mechanisms established for the purpose of managing the national development policy, in particular for the purpose of managing the EU funds earmarked for the implementation of cohesion policy in 2014–2020.

9.1.1. Implementation of the Strategy

The Strategy is implemented through operational programmes under the cohesion policy of the European Union. The most important element which enables the transition from the level of Strategy to the level of programming is the territorial contract113.

113 In line with the NSRD 2020, the territorial contract ‘covers priority projects, understood as the most important projects from the point of view of the central government and governments of the relevant voivodeships, which comply with the areas of strategic intervention, are significant for the development of the territory on which a given intervention is carried out, and contribute to the achievement of regional policy goals agreed between the central and local government during the contract negotiations’ (NSRD 2020, chapter 7.3.3.).

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Implementation, monitoring and evaluation system

Figure 7. Schedule for Strategy implementation

EU goals for spending

European Funds

Strategy for Eastern

Poland

Council of Ministers

Coordina�on Commi�ee for

the Development Policy

Territorial contracts

Ministry of Regional

Development

Voivodeship Self-Government

Strategy for the use

of European Funds

Opera�onal programmes

under cohesion policy

Beneficiaries

Source: own study.

9.1.2. Territorial contract

Investments, in accordance with the menu of actions suggested in the operational part of the Strategy, will be covered by territorial contracts and, in consequence, will be included in operational programmes implementing the Strategy.

It should be underlined that in order to achieve the goals set out in the Strategy, actions taken within the framework of territorial contracts for each of five Eastern Poland voivodeships are not the only important element. In particular, actions in the area of innovation (networking) and infrastructure (the so called centripetal

�0

linking) require that undertakings contributing to the achievement of the goals of the Strategy should be indicated also in contracts for other voivodeships.

9.1.3. Strategy of use of European Funds by Poland114

Strategy implementation process is closely linked to fulfilling the commitments resulting from the strategy of use of the European Funds by Poland, which takes into consideration the EU goals in terms of spending the development funds.

9.1.4. Operational programmes co-financed from the EU funds under the cohesion policy

Operational programmes under EU cohesion policy are the instruments to achieve the goals of the Strategy. Within the financial framework for 2014–2020, programmes covering the following areas or territories should be mentioned:

programme of territorial nature dedicated to Eastern Poland as the Area of Strategic Intervention and regional programmes of Eastern Poland voivodeships as well as of other voivodeships,

operational programme regarding innovation and scientific research, and their linkages with the sphere of enterprises,

operational programme regarding low-carbon economy, environmental protection, combating and adaptation to climate change, and transport and energy security,

operational programme regarding development of competences and skills, social inclusion, and good governance,

operational programme regarding digital growth.

Programmes under European territorial cooperation (ETC) and European Neighbourhood and Partnership Instrument (ENPI) implemented at the border of Eastern Poland, which is also the external border of the European Union, will also contribute to the achievement of the Strategy goals.

114 In the 2007–2013 programming period this kind of document is ‘National Strategic Reference Framework’ prepared on the basis of Article 27 of the Council Regulation (EC) No 1083/2006 of 11 July 2006 laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and repealing Regulation (EC) No 1260/1999 (OJEU L 210, 31.07.2006, p. 25–78, as amended).

�1


9.1.5. Institutions engaged in the implementation of the Strategy

Council of Ministers:

adopts and revises the Strategy,

defines the strategy of use of the European Funds,

participates in the process of preparation and approval of territorial contracts with individual voivodeships;

Coordination Committee for the Development Policy115: ensures cohesion of the Strategy with other strategic documents;

Minister competent for regional development:

coordinates the processes related to preparation for negotiations, the negotiations themselves, and the implementation of the contract on behalf of the government,

coordinates the preparation of operational programmes,

implements national operational programmes as the Managing Authority;

Voivodeship self-governments:

coordinate the processes related to preparation for negotiations, the negotiations themselves, and implementation of the contract on behalf of self-governments,

implement regional operational programmes;

operational programme beneficiaries (local governments, enterprises, business environment institutions, universities, social organisations, economic organisations, scientific organisations, research institutes, schools, cultural institutions and other institutions) implement projects under operational programmes which contribute to achievement of the Strategy goals.

9.2. Monitoring

While monitoring the Strategy, mechanisms relating to development policy monitoring, and in particular to monitoring implementation of operational programmes under cohesion policy, are used.

115 Consultative and advisory body of the Prime Minister in the area of development policy.

�2

Figure 8. Schedule for Strategy monitoring

Coordina�on Commi�ee for

the Development Policy

Report on socioeconomic, regional and spa�al development

Interim report on implementa�on Ministry

of Regional Development

Annual monitoring report

Territorial contracts

Informa�on on Territorial Contract

implementa�on

Opera�onal programmes

under cohesion policy

report, evalua�on

Subcommi�ee for Eastern

Poland

Report on implementa�on of the strategy of use of

the European Funds

Strategy for Eastern

Poland

Source: own study.

9.2.1. Annual monitoring report

Current monitoring of the Strategy takes place in particular through analysing the allocation of funds earmarked under operational programmes for projects implemented in Eastern Poland, and through monitoring results of their implementation.

Annual monitoring report forms an integral part of the report on implementation of the Strategy of use of the European Funds, which is adopted by a government group

��


that coordinates the use of the European Funds116. The report also includes annual updates of the indicators for the Strategy monitoring, obtained from the official statistics system for the purpose of monitoring the development policy.

9.2.2. Interim report on implementation of the Strategy

The basic document on monitoring the Strategy is the Interim report on implementation of the Strategy for Socioeconomic Development of Eastern Poland until 2020. The report is developed within time limits corresponding to the preparation of the Report on socioeconomic, regional and spatial development117. The basic scope of the interim report covers at least:

background for evaluation of progress in achieving the goals (situation in the country in the areas referred to in the Strategy),

actions taken in order to implement the Strategy, including financial allocation, progress in achieving the main goal based on the monitoring indicators,

description of selected projects, which are consistent with the directions and menu of actions of the Strategy, and their results in the context of achievement of the Strategy goals,

conclusions together with a forecast of possibility of achieving the intended goals of the Strategy.

The report is adopted by the Coordination Committee for the Development Policy, which may on its basis formulate recommendations concerning possible update of the Strategy or implementation instruments (territorial contract and operational programmes); results of this report are also included in the Report on socioeconomic, regional and spatial development.

9.3. Evaluation

Minister competent for regional development is responsible for commissioning and accepting Strategy evaluation. Generally, conducting evaluations or analyses is outsourced. However, this does not exclude internal evaluations or other analyses within the minister’s office to assess the impact of the Strategy, instruments or implementation programmes on the socioeconomic situation in Eastern Poland.

Evaluation reports are submitted in particular to the Coordination Committee for the Development Policy and to the Subcommittee for Eastern Poland (see point

116 Currently the Inter-ministerial Group for Programming and Implementation of the Structural Funds and Cohesion Fund of the European Union, established by Ordinance No 19 of the Prime Minister of 26 March 2012, has such function.117 As the so called ‘Strategic report’ it is also pointed out as one of the supporting instruments for the strategic dimension of regional policy in the NSRD.

��

9.3.1). The reports form a basis for the committees for issuing recommendations or suggesting changes in the Strategy implementation instruments to increase the effectiveness and efficiency of actions that contribute to achievement of Strategy goals.

9.3.1. Institutions engaged in the monitoring and evaluation process

Coordination Committee for the Development Policy:

analyses conclusions from the monitoring and evaluation processes and assesses effectiveness of the Strategy, recommends possible changes in the Strategy,

monitors the fulfilment of commitments resulting from the territorial contract regarding development interventions consistent with the directions set out in the Strategy;

Subcommittee for Eastern Poland at the group coordinating the use of European Funds:

analyses conclusions resulting from the monitoring and evaluation processes, and recommends mechanisms supporting the achievement of Strategy goals through interventions undertaken within the framework of operational programmes;

Minister competent for regional development:

prepares the Strategy monitoring reports,

commissions or carries out evaluations,

includes the conclusions from Strategy monitoring and evaluation processes in the report on implementation of the strategy of use of European Funds and in the Report on socioeconomic, regional and spatial development.

��

10. FINANCIAL FRAMEWORK

Due to the state of work on the preparation of operational programmes for 2014–2020, specifying the value of funds earmarked for the implementation of the Strategy is an estimate.

Expenditure within the framework of the Strategy will be financed from the following sources:

European Union – within the framework of the Cohesion Fund, Connecting Europe Facility (CEF), European Regional Development Fund, European Social Fund,

national budget – within the framework of national co-financing for certain beneficiaries of operational programmes, and within the framework of own contribution of government sub-sector entities, e.g. universities,

budgets of self-governments – of voivodeships, poviats and gminas – within the framework of co-financing or as own contribution or other necessary expenditure,

other public funds – e.g. targeted funds within the framework of own contribution of beneficiaries or within the framework of co-financing of projects,

beneficiaries’ private funds as own contribution to projects,

funds obtained within the framework of public-private partnership.

In order to estimate the amount of funds available for implementation of the revised Strategy, an analysis was carried out concerning the funds allocated (calculated on the basis of total value of contracts signed) by 31 December 2012118 to the categories of interventions under cohesion policy funds of the European Union119, corresponding to the strategic directions of actions foreseen in the revised Strategy120 for projects implemented in Eastern Poland. The total amount of funds121 allocated to Eastern Poland from the beginning of implementation of operational programmes under

118 Data from the KSI SIMIK 2007–13 national information system.119 Classification of categories of interventions of the funds for 2007–2013 – annex II to the Commission Regulation (EC) No1828/2006 of 8 December 2006 setting out rules for the implementation of Council Regulation (EC) No 1083/2006 laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and of Regulation (EC) No 1080/2006 of the European Parliament and of the Council on the European Regional Development Fund (OJEU L No 371, 27.12.2006, p. 1–169, as amended)..120 Three main directions of the revised strategy were assigned the following categories of intervention: Innovation – categories: 1–9, 13–15, 62–63, 74; Labour force and quality of human capital – categories: 14, 69, 68, 72, 73; Transport infrastructure and energy grids – categories: 33–34, 39–43.121 Total value of contracts.

��

2007–2013 framework until 31 December 2012 was PLN 70,543 million, including EU funding in the amount of PLN 41,352 million.

So far, individual strategic areas are represented at the following level:

Innovation 33%

Labourforceandqualityofhumancapital 15%

Transportinfrastructureandenergygrids 52%

Indicator of contracting funds under programmes for 2007–2013 was 84 %122. Assuming that funds remaining to be used will be allocated to Eastern Poland to such an extent as previously, it can be assumed that the value of funds earmarked for the macro-region under operational programmes for 2007–2013 will amount in total to ca. PLN 93 billion, while estimated value of funding from the European Funds – to ca. PLN 49 billion123.

It is assumed that in 2014–2020 both the amount and the structure of expenditure for the main strategic areas will be maintained

Based on the data on use of funds for 2007–2013124, it is foreseen that ca. 30 % of funds from the amount of EU funding (ca. PLN 49 billion) will be allocated for private sector projects. In the pool of ca. 70 % of EU funds for the public sector, projects of local government units will constitute ca. 55 %, and the rest will be projects of the government sub-sector.

Table 5: Estimated breakdown of appropriations from the European Funds by sectors (in PLN billion)

Privatesector 14.7Publicsector: 34.3– governmentsub-sector 15.4– self-governmentsub-sector 18.9

In the context of regulations on the level of debt of self-governments, it should be concluded that the necessity to ensure indispensible national expenditure, especially by the self-government sub-sector, may be a risk factor for the achievement of Strategy goals.

122 http://www.mrr.gov.pl/ministerstwo/zadania/Documents/Wykorzystanie_Funduszy_Europejskich_Informacja_Prasowa_2013.pdf 123 The amount does not include funds for the projects implemented under Connecting Europe Facility (CEF).124 Estimate based on the report Oszacowanie środków niezbędnych do zapewnienia krajowego wkładu publicznego do projektów realizowanych w ramach średniookresowych ram finansowych 2014-2020, Warsaw, January 2013 available at: http://www.mrr.gov.pl/rozwoj_regionalny/Ewaluacja_i_analizy/Raporty_o_rozwoju/Raporty_krajowe/Strony/Ra- port_wklad_krajowy_w_perspektywie_2014_2020_130313.aspx

��

Financial framework

The difference between the contribution from the EU Funds and the total value of grant agreements, estimated at ca. PLN 44 billion, consists of beneficiaries’ expenditure within the framework of own contribution and/or expenditure from the national budget or budget of voivodeship, poviat and gmina self-governments within the framework of national co-financing. Taking into consideration data indicating that the average level of necessary own contribution of local government units amounts to ca. 36 %, the necessary contribution of the self-government sector for implementation of projects covered by the Strategy may amount to ca. PLN 25.7 billion125.

More accurate estimation of the expected value of funds earmarked for Strategy implementation will be possible after negotiations of territorial contracts are concluded and individual operational programmes are approved.125

125 Own calculations, based on data from the report Oszacowanie środków niezbędnych do zapewnienia krajowego wkładu publicznego do projektów realizowanych w ramach średniookresowych ram finansowych 2014-2020, Warsaw, January 2013.

��

List of maps, figures and tables

Map 1: Eastern Poland macro-region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Map 2: Regional Competitiveness Index (2010) . . . . . . . . . . . . . . . . . . . . . . . . . 25

Map 3: Innovation potential of EU-27 regions (2008). . . . . . . . . . . . . . . . . . . . . 32

Map 4: Regional innovation profiles in EU-27 . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Map 5: Higher education from regional perspective. . . . . . . . . . . . . . . . . . . . . . 36

Map 6: Publication potential of sub-regions and cooperation directions in 2001–2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

Map 7: Intensity of expenditure on innovation in enterprises (services and industry) in 2011. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

Map 8: Inflow of foreign direct investment per capita in 2007–2010.. . . . . . . . 43

Map 9: Inflow dynamics of foreign direct investment per capita in 2007–2010. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

Map 10: Share of persons employed in agriculture in 2008 (by regions) . . . . . . 49

Map 11: The share of people with higher education in EU-27 (2010) . . . . . . . . . 50

Map 12: Level of employment in the high-tech sector in EU-27 (2007) . . . . . . . 50

Map 13: Density of motorway and railway network in Europe in 2008. . . . . . . . 57

Map 14: A potential increase in the accessibility to road and railway transport, the scenario assuming a high speed with regard to the current situation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58

Map 15. The plan of electricity transmission network in a part of Europe. . . . . 59

Map 16. Spatial diversity of the Inter-sectoral Transport Accessibility Indicator (WMDT) in 2010. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

Map 17: Accessibility to passenger flights in 2006. . . . . . . . . . . . . . . . . . . . . . . . . 62

Map 18: Changes in the potential accessibility of inter-sectoral transport accessibility indicator resulting from the ongoing investments (map A refers to motorways and expressways under construction, map B – to projects that are being implemented with respect to railway infrastructure) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

Map 19: Typology of time-related transport accessibility to centres concentrating various kinds of services in Poland . . . . . . . . . . . . . . . . . 65

��

List of maps, figures and tables

Map 20: Electricity infrastructure in Poland. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

Map 21: Changes in the electricity consumption at low voltage in Poland in 2000–2007. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

Map 22: Production of energy from renewable sources in Poland (2008). . . . . . 68

Figure 1: Strategy for Eastern Poland in the system of national strategic documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Figure 2: Projected GDP per capita values by PPS in relation to the EU-27 . . . . 27

Figure 3: Main factors explaining differences in GVA levels per 1 resident of Polish voivodeships in relation to national average in 2009.. . . . . . . 28

Figure 4: Innovation Union Scoreboard 2011 ranking. . . . . . . . . . . . . . . . . . . . . . 34

Figure 5: Poland relative to EU-27 in 8 areas of indicators Innovation Union Scoreboard 2011 (in brackets: Poland in EU). . . . . . . . . . . . . . . . . . . . . . 34

Figure 6: Migration flows between voivodeships by age groups in 2008 (In – inflow, Out – outflow). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

Figure 7. Schedule for Strategy implementation . . . . . . . . . . . . . . . . . . . . . . . . . . 89

Figure 8. Schedule for Strategy monitoring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92

Table 1: Gross domestic product per 1 resident by PPP, EU-27 = 100 . . . . . . . . 26

Table 2: Clusters in Eastern Poland voivodeship . . . . . . . . . . . . . . . . . . . . . . . . . . 46

Table 3. Scheme presenting strategic lines of action for Eastern Poland . . . . . . 73

Table 4: Table of indicators for monitoring the Strategy for Socioeconomic Development of Eastern Poland until 2020 . . . . . . . . . . . . . . . . . . . . . . . 84

Table 5: Estimated breakdown of appropriations from the European Funds by sectors (in PLN billion) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96

100

Expert reports prepared for the purpose of the revised Strategy for Socioeconomic Development of Eastern Poland until 2020

1. Broniatowska Paulina, Gajewski Paweł, Rogut Aleksandra – Rynek pracy województw Polski Wschodniej

2. Celinska-Janowicz Dorota, Miszczuk Andrzej, Płoszaj Adam, Smętkowski Maciej – Aktualne problemy demograficzne regionu Polski Wschodniej

3. Czapiewski Konrad, Śleszyński Przemysław, Kozak Marek – Znaczenie ośrodków miejskich oraz ich hierarchicznych powiązań dla regionalnego i lokalnego rozwoju ekonomicznego i społecznego Polski Wschodniej

4. Domański Bolesław, Działek Jarosław, Gwosdz Krzysztof, Sobala-Gwosdz Agnieszka, Dej Magdalena – Znaczenie przemysłu dla „inteligentnego i trwałego” rozwoju regionu Polski Wschodniej oraz podejmowanych działań dotyczących jego restrukturyzacji i modernizacji

5. Fund-eko Sp.jawna – Rozwój infrastruktury energetycznej OZE w Polsce Wschodniej – stan i perspektywy

6. Gaczek Wanda, Matusiak Monika, Mrozińska Agnieszka, Ziółkowska Halina – Innowacyjność gospodarek województw Polski Wschodniej – ocena, znaczenie, perspektywy

7. Gajewski Paweł – Poziom i dynamika rozwoju małej i średniej przedsiębiorczości w Polsce Wschodniej

8. Goraj Lech – Konkurencyjność i znaczenie rolnictwa oraz sektora rolno-spożyw-czego w województwach Polski Wschodniej

9. Herbst Mikołaj, Wójcik Piotr – Procesy zróżnicowań terytorialnych w rozwoju społeczno-gospodarczym Polski w latach 2000-2009, ze szczególnym uwzględ-nieniem Polski Wschodniej oraz korelacji przestrzennych

10. Komornicki Tomasz, Miszczuk Andrzej – Transgraniczne powiązania województw Polski Wschodniej

11. Komornicki Tomasz, Rosik Piotr, Stępniak Marcin – Dostępność transportowa w Polsce Wschodniej

12. Komornicki Tomasz, Szejgiec Barbara – Handel zagraniczny. Znaczenie dla gospodarki Polski Wschodniej

13. Kozak Marek – Turystyka jako czynnik rozwoju regionów Polski Wschodniej

101

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Promoting Growth in All Regions, OECD, 2012.

Przedsiębiorczość kobiet w Polsce, Polish Agency for Enterprise Development, 2011.

Przedsiębiorczość w Polsce, Ministry of Economy, 2011.

Ranking atrakcyjności inwestycyjnej województw i podregionów Polski, Instytut Badań nad Gospodarką Rynkową, period: 2004–11.

Council Regulation (EC) No 1083/2006 of 11 July 2006 laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and repealing Regulation (EC) No 1260/1999 (OJEU L 210, 31.07.2006, p. 25–78, as amended.).

Dr Sierak J., dr Bitner M., dr Gałązka A., dr Górniak R., Oszacowanie środków niezbędnych do zapewnienia krajowego wkładu publicznego do projektów realizowanych w ramach średniookresowych ram finansowych 2014–2020, Report for the MRD, Warsaw, 2013.

Situation and prospects for EU agriculture and rural areas, European Commission, Brussels 2012.

Spiekermann K., Schurmann C., Update of selected potential accessibility indicators. Final report, Spiekermann & Wegener, Urban and Regional Research (S&W), RRG Spatial Planning and Geoinformation, 2007.

Społeczeństwo Informacyjne, GUS, Warsaw 2012.

Projekt Strategii Bezpieczeństwo Energetyczne i Środowisko z dn. 4 lipca 2012, Ministry of Economy.

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Strategia Innowacyjności i Efektywności Gospodarki Dynamiczna Polska 2020, adopted by the Council of Ministers on the 15th January 2013.

Strategia Rozwoju Kapitału Ludzkiego, adopted by the Council of Ministers on the 18th June 2013.

Strategia Rozwoju Kapitału Społecznego, adopted by the Council of Ministers on the 26th March 2013.

Strategia Rozwoju Kraju 2020, adopted by the Council of Ministers on the 25th September 2012.

Strategia Rozwoju Systemu Bezpieczeństwa Narodowego RP, adopted by the Council of Ministers on the 9th April 2013.

Strategia Rozwoju Transportu, adopted by the Council of Ministers on the 22th January 2013.

Strategia Sprawne Państwo, adopted by the Council of Ministers on the 22 February 2013.

Strategia Zrównoważonego Rozwoju Wsi, Rolnictwa i Rybactwa, adopted by the Council of Ministers on the 25th April 2012.

Strategiczny plan działań dla sektorów i obszarów wrażliwych na zmiany klimatu do roku 2020, Ministry of Evironment, Warsaw 2012.

Szacunek PKB per capita i bezpośrednich inwestycji zagranicznych w województwach oraz wskaźniki wyprzedzające koniunktury. Biuro Inwestycji i Cykli Ekonomicznych, report commissioned by the Ministry for Regional Development, Warsaw 2011.

Śleszyński P., Czapiewski K., Kozak M., Znaczenia ośrodków miejskich oraz ich hierarchicznych powiązań dla regionalnego i lokalnego rozwoju ekonomicznego i społecznego Polski Wschodniej, Warsaw 2011.

Ustawa z dnia 3 października 2008 r. o udostępnianiu informacji o środowisku i jego ochronie, udziale społeczeństwa w ochronie środowiska oraz o ocenach oddziaływania na środowisko (Dz. U. [Journal of Laws] of 2009, No 199, item 1227, as amended).

Ustawa z dnia 6 grudnia 2006 r. o zasadach prowadzenia polityki rozwoju (Dz. U. [Journal of Laws] of 2009, No 84, item 712, as amended).

Wizja struktury transportu oraz rozwoju sieci transportowych do roku 2033. Tom II, report commissioned by the Ministry for Regional Development.

Working Papers n°02/2011: A New Regional Competitiveness Index: Theory, Methods and Findings, European Commission for Regional Policy, February 2011.

Założenia systemu zarządzania rozwojem Polski, adopted by the Council of Ministers on the 27th April 2009.

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Web pages

Eur-Lex: www.eur-lex.europa.eu

Central Statistical Office of Poland: www.stat.gov.pl

The Gdańsk Institiute for Market Economics: www.ibngr.pl

Ministry of Administration and Digitisation: www.mac.gov.pl

Ministry of Agriculture and Rural Development: www.minrol.gov.pl

Ministry of Regional Development: www.mrr.gov.pl

Outsourcing Portal: www.outsourcingportal.pl

Eastern Poland Programme: www.polskawschodnia.gov.pl

Polish Innovation Portal: www.pi.gov.pl/PARP/data/klastry/index.html