Across Europe, Regional Development Agencies (RDAs) are now redefining what it means to drive regional growth. They are becoming strategic conveners, network-builders and trusted institutional partners – organisations that actively shape regional development. What does this shift look like in practice, and what can it tell us about the future of RDAs?

European RDAs differ depending on the legislative basis, mandate, history and needs of each country – some are not even called RDAs. Still, for every EU country there are specific characteristics that make their RDAs successful, alongside general attributes shared by any successful organisation: a clear, evidence-based strategy; accountability to government and the public; stable core public funding combined with diversified revenue streams; strong partnerships; and an international orientation.

However, this article is not about those characteristics. At this point, Ukrainian regional and national authorities already have a solid understanding of what RDAs are and what they need to become an integral part of regional development. Instead, drawing on multiple sources from across the EU, we look at how many RDAs have taken a creative and strategic path in delivering services – and, in several cases, gone well beyond it. This article explores management and strategy trends: observable directions of change over time, reflecting activities that were not mandated to RDAs upon creation but that they developed themselves in order to become integral and successful.

We rely heavily on the Analysis of Best Practices of European Regional Development Agencies, published by UCORD in 2025 (the "UCORD Analysis"), as well as on other analytical sources from across the EU.

The material is developed by the Swiss–Ukrainian project UCORD, in cooperation with the European Association of Development Agencies (EURADA) and the Decentralization portal. The contents of this publication are the sole responsibility of the author(s) and do not necessarily reflect the views of the Swiss Agency for Development and Cooperation, or NIRAS Sweden AB.

 

Key Trends that Made European RDAs Successful

Successful European RDAs are constantly evolving. The most striking overall trend is their move to become strategic ecosystem orchestrators. Building and coordinating regional networks that bring together businesses, universities, research organisations, investors and public authorities is often part of an RDA's mandate – but successful RDAs go further, positioning themselves not merely as platforms for communication, but as the driving force behind how regional strategies are designed. In other words, they shift from the reactive implementation of regional policy to strategic leadership grounded in the representation of multiple stakeholders.

Historically, this shift reflects the original rationale for creating RDAs as semi-autonomous organisations: “a regionally based, publicly financed institution outside the mainstream of central and local government administration designed to promote economic development,” as described in “Regional Development Agencies in Europe” by Henrik Halkier, Mike Danson,and Charlotte Damborg. Successful European RDAs have used this distinctive position to shape regional development through strategic planning, stakeholder engagement and long-term institutional coordination – all while remaining transparent and accountable to respective central or regional governments. The sections below explore what specific European RDAs have done to become strategic rather than reactive actors, indispensable to regional development.

Greater specialisation instead of "one-size-fits-all"

Successful RDAs have increasingly replaced generic economic development structures with specialised, multidisciplinary teams aligned to their region's strategic priorities. The widespread adoption of Smart Specialisation Strategies (S3) in the 2010s (see our article on S3) has reinforced this shift, requiring regions to identify their unique competitive strengths and focus resources accordingly. As a result, leading agencies have developed dedicated expertise in areas such as innovation, investment, internationalisation, sustainability and digitalisation, enabling them to deliver more targeted and effective support.

The Romanian North-East Regional Development Agency (ADR N.E.) is a strong example of this approach. Health was identified as one of the priorities in the North-East region's S3 strategy – a strategy developed on ADR N.E.'s own initiative – and this priority is now reflected in both the agency's activities and its organisational structure. ADR N.E. has founded the entrepreneurial space "RubikHub," which has supported over 300 startup founders and helped raise more than €55 million in investment for startups across various sectors, including MedTech. It has also established the IMAGO-MOL Cluster, Romania's premier medical imaging cluster, with 71 members offering cutting-edge telehealth and AI-driven medical imaging solutions and positioning the region as a leader in healthcare innovation. In addition, the agency operates a dedicated Health Directorate focused on improving healthcare infrastructure, innovation and accessibility through EU-funded initiatives.

This growing specialisation reflects a broader management philosophy: complex regional challenges require specialist knowledge rather than one-size-fits-all solutions. By combining thematic expertise with a deep understanding of regional assets and priorities, RDAs are better positioned to shape long-term development strategies, coordinate specialised partners and translate regional ambitions into practical initiatives.

Portfolio management rather than isolated interventions

It is important not to conflate greater specialisation with the delivery of isolated projects. As RDAs evolve into strategic development organisations, they are moving away from sporadic project implementation dependent on available funding, and toward managing integrated portfolios of interventions. Rather than treating business support, innovation, investment attraction, export promotion and sustainability as separate activities, leading agencies increasingly design them as complementary elements of a broader regional development strategy. This allows individual interventions to reinforce one another and generate greater long-term impact than stand-alone programmes. The OECD has similarly highlighted the value of portfolio approaches in the public sector, arguing that they help organisations connect initiatives, manage complexity and achieve systemic change rather than incremental, project-level results.

This integrated approach is evident across all RDAs analysed by UCORD. Support for businesses is embedded within wider regional priorities, linking access to finance with innovation services, internationalisation, skills development and sustainability objectives.

Entrepreneurial public management

Returning to the core rationale for RDAs as semi-autonomous organisations: while they remain accountable to regional government – and, by extension, to the public – successful RDAs increasingly operate with the mindset of entrepreneurial public organisations rather than traditional public administrations. They actively identify new opportunities, build strategic partnerships, attract investment, generate projects and engage internationally to advance regional competitiveness. This proactive approach allows agencies to respond more quickly to changing economic conditions and to position their regions to benefit from emerging industries and investment opportunities. In its report “Tackling Policy Challenges Through Public Sector Innovation: A Strategic Portfolio Approach,” the OECD similarly argues that modern public organisations need to be adaptive, collaborative and innovation-oriented to address increasingly complex policy challenges.

This entrepreneurial culture is underpinned by evidence-based management. Rather than relying primarily on political priorities, leading RDAs – such as ART-ER in Romania or OostNL in the Netherlands from the UCORD Analysis – use regional intelligence, economic analysis, foresight, monitoring and impact evaluation to identify opportunities and shape interventions. By grounding decisions in data and continuous learning, they are better equipped to target investments, anticipate structural changes and adapt their strategies over time.

Professionalisation of governance

Successful RDAs are also characterised by the professionalisation of governance, with supervisory boards increasingly composed of members selected for their expertise rather than solely for political representation. Experience in business, innovation, finance, academia and regional development enables such boards to provide strategic direction, challenge organisational decisions and ensure that agencies remain responsive to changing economic conditions.

The UCORD Analysis illustrates this well: Scottish Enterprise's board appointments, for example, are based on "individuals' expertise in areas such as business, innovation, economic development, and public policy." This reflects a broader recognition that effective regional development requires governance structures capable of balancing public accountability with informed, long-term decision-making.

Increasing organisational flexibility

Successful RDAs demonstrate a high degree of organisational flexibility, continuously adapting their structures to changing economic priorities and policy environments. Rather than remaining fixed institutions, they evolve by integrating new functions, strengthening capabilities and, in some cases, consolidating existing organisations.

The UCORD Analysis illustrates this trend well: IVACE of the Valencia region in Spain was formed by bringing together several regional agencies, while the Italian ART-ER emerged from the merger of two entities with complementary missions – ASTER (Territorial Development Agency of the Emilia-Romagna Region) and ERVET (the managing organisation of the Emilia-Romagna High Technology Network). Through these mergers, both agencies created organisations with broader expertise and more integrated service portfolios – a clear reflection of the wider recognition that regional development requires institutions capable of adapting as regional needs change.

Increasing customer orientation toward businesses

Successful RDAs are increasingly adopting a customer-centric approach to business support, shifting from administrative service delivery toward long-term relationship management. Rather than expecting businesses to navigate complex public support systems on their own, leading agencies tailor services to firms' needs, simplify access to programmes, assign dedicated advisers and accompany companies throughout their growth or investment journey. This approach reflects the recognition that sustained engagement, rather than one-off transactions, leads to better outcomes for both businesses and regional economies.

OostNL, cited in the UCORD Analysis, is a strong example: rather than treating support as a single transaction – such as a grant application – this RDA accompanies firms throughout different stages of their development. Its support combines identifying promising firms, helping develop investment propositions, attracting investors, supporting internationalisation, connecting firms with knowledge institutions, and remaining involved as companies grow.

This approach reflects broader trends in public-sector service design, where organisations are encouraged to organise services around users – in this case, businesses – rather than around administrative structures. The European Commission's Better Regulation Agenda emphasises user-centred public services that are accessible, responsive and tailored to stakeholder needs, and the World Bank's work on investment promotion agencies highlights relationship management and investor aftercare as key determinants of successful investment support. For RDAs, adopting a client relationship model strengthens trust, improves service quality and enables agencies to better understand and respond to the evolving needs of regional businesses.

Managing networks instead of projects

Successful RDAs increasingly create value not by delivering individual projects, but by building and managing regional innovation networks. Their effectiveness lies in connecting businesses, universities, research organisations, investors and public authorities into lasting partnerships that accelerate knowledge exchange and economic development. The UCORD case studies demonstrate this clearly: ART-ER coordinates Emilia-Romagna's High Technology Network, while IVACE works through the REDIT network of technological institutes to strengthen innovation capacity across the region. Rather than acting as project managers, these agencies serve as trusted intermediaries that sustain collaboration well beyond the lifetime of individual initiatives.

This reflects a broader shift toward network-based regional governance, in which institutional capacity is measured by the ability to mobilise actors and coordinate collective action, rather than by the volume of funding distributed. As the OECD notes, "multi-stakeholder platforms are particularly relevant at the regional level, as regional governments are in charge of responsibilities closely related to the economic and social fabric of the territory, with a direct impact on economic and private stakeholders." In this way, networks become a strategic asset in their own right, enabling RDAs to generate impact that extends far beyond individual programmes or projects.

Building long-term institutional trust

Finally, successful Regional development agencies ultimately become trusted intermediaries within their regions. Their value extends beyond individual projects or funding programmes: businesses return to them because they provide reliable support; governments delegate implementation responsibilities because they have proven capable; European institutions entrust them with complex programmes; universities see them as strategic partners; and investors recognise them as credible gateways into regional ecosystems. Over time, this accumulated confidence becomes a critical organisational asset – one that enables RDAs to influence development agendas, mobilise stakeholders and attract new opportunities.

This dynamic is particularly visible in organisations such as Scottish Enterprise and OostNL, both featured in the UCORD Analysis. These RDAs have built strong reputations as long-term partners for businesses, governments and knowledge institutions. Their experience demonstrates that institutional trust is not created through a single initiative, but through consistent delivery, strategic thinking and the ability to connect different actors around shared regional priorities. For Ukrainian RDAs, this experience represents an opportunity to strengthen this same role – continuing to build credibility, demonstrate impact and use available governance space and resources to become indispensable actors in regional transformation.

 

The Road Ahead for RDAs

Across Europe, agencies are increasingly moving beyond the traditional function of administering grants and becoming strategic ecosystem builders – they become organisations that coordinate regional innovation systems, connect actors and help shape long-term development pathways. This shift calls for stronger governance models, clearer performance frameworks, stronger strategic planning capabilities and robust evaluation approaches that demonstrate not only what RDAs fund, but what they achieve.

The RDAs of the future are also expected to act as a convenor and a forward-looking institution – ones that bring together governments, universities, businesses and civil society while using strategic foresight to anticipate future challenges and opportunities. These evolving expectations are especially relevant amid ongoing discussions around the post-2027 EU Cohesion Policy framework, like EURADA’s policy paper “From Partnership to Parentship?”, which altogether is expected to place greater emphasis on competitiveness, the green transition, skills development, entrepreneurship and territorial resilience.

For Ukrainian RDAs, such changes represent an invitation to think beyond existing models and make full use of the governance approaches and funding instruments currently available. By experimenting, building partnerships and expanding their strategic role, RDAs can position themselves not only as implementers of regional policy, but as architects of their regions' future.