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Statistics Explained

Data extracted in March 2025.

Planned article update: September 2026.

Structural business statistics at regional level

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Data extracted in March 2025.

Planned article update: September 2026.

Highlights

In 2022, manufacturing activities accounted for more than 40% of the business economy workforce in 2 Czech regions –Severovýchod (42.3%) and Střední Morava (40.8%); the EU average was 18.7%.

In 2022, the EU’s enterprise birth rate was 10.5%. Several regions in Portugal, the Baltic countries and France recorded considerably higher rates, with Península de Setúbal in southern Portugal recording a peak of 20.5%.

An infographic showing the ten EU regions with the highest shares of employment in manufacturing activities. Data are shown in percent, based on the share of business economy employment for 2022. For more details please use the link to the source dataset code below the image.
Source: Eurostat (sbs_r_nuts2021) and (sbs_sc_ovw)

Presented according to the activity classification NACE, the information presented in this chapter is split into 3 parts.

As part of the European Commission’s priorities for 2024 to 2029, A new plan for Europe’s sustainable prosperity and competitiveness sets out a strategic vision for strengthening the EU’s economic resilience, while advancing environmental sustainability and social well-being. This includes:

  • making business easier and faster
  • building a clean industrial deal
  • working to make business activities more circular and sustainable
  • making the economy more resilient
  • increasing productivity with digital technological diffusion
  • putting research and innovation at the heart of the EU economy
  • turbo charging investment
  • tackling skills and labour gaps.

In line with these priorities, this year’s edition of the Eurostat regional yearbook focuses on knowledge-intensive market services, knowledge-intensive high-technology services and innovation-active enterprises.

The Clean Industrial Deal: A joint roadmap for competitiveness and decarbonisation (COM(2025) 85 final) will mobilise over €100 billion to support clean manufacturing. The European Commission will adopt a new framework to accelerate the rollout of renewable energy, decarbonise industry and ensure sufficient manufacturing capacity for clean technologies. The aim is to boost demand for EU-made clean products by introducing sustainability, resilience and ‘made in Europe’ criteria into both public and private procurement.

In 2022, manufacturing activities accounted for 18.7% of total employment within the EU’s business economy. In the Czech regions of Severovýchod and Střední Morava, more than 2 in 5 people were employed in the manufacturing sector (see the infographic above).


Business demography

Business demography statistics provide information about the events in the life cycle of an enterprise. They cover, among other stages:

  • the birth of new enterprises
  • the growth and survival of existing enterprises (with particular interest centred on their employment impact)
  • enterprise deaths.

These indicators provide an important insight into business dynamics, as new enterprises / fast-growing enterprises tend to be very agile and may improve the overall level of efficiency and productivity within an economy.

More about the data: business demography statistics

Business demography statistics are presented for the business economy – defined here as NACE Sections B to N and P to R and Divisions 95 and 96 – covering industry, construction, distributive trades and other market services.

Business demography indicators are presented for 2022; the latest information for enterprise death rates is provisional.

High-growth enterprises are of particular interest to policymakers insofar as they can improve the economic performance of a region, create employment opportunities and, if sustained, change its economic structure. A high-growth enterprise is an enterprise that grows over a specified period of time at a rapid pace when measured in terms of its number of employees. In this publication, the time period from 2019 to 2022 is used. As such, high-growth enterprises are specifically defined as those which meet – simultaneously – 2 conditions:

  • at least 10 employees in 2019
  • average employee growth of more than 10% per year between 2019 and 2022.

High-growth enterprises might create new markets or compete in existing markets with domestic or foreign companies. Therefore, their growth does not translate one-to-one into growth of the national economy. However, their capacity to create or conquer markets correlates positively with the overall economic performance of a country.

For the enterprise birth rate, data are not available for NUTS level 2 regions in Belgium, Serbia and Türkiye; national data are shown instead. For the enterprise death rate, data for Voreio Aigaio and Notio Aigaio in Greece refer to 2021 (not 2022).

Enterprise births and deaths

In 2022, the EU’s enterprise birth rate was 10.5%

The enterprise birth rate measures the number of new enterprises born during a year in relation to the total population of active enterprises in the same year. In 2022, there were 3.4 million enterprise births within the EU’s business economy. When expressed relative to the total number of enterprises (32.6 million), this equated to an enterprise birth rate of 10.5%.

In 2022, the regional distribution of enterprise birth rates for the business economy was relatively skewed insofar as 37.2% of NUTS level 2 regions (87 out of 234) reported a rate that was equal to or above the EU average, while the remaining 62.8% of regions had rates below the average. This indicates a tendency for entrepreneurial activity to be geographically concentrated in the EU.

Map 1 shows that enterprise birth rates were relatively homogeneous in some EU countries, highlighting that the underlying national business environment, administrative, macro- and socioeconomic conditions likely have an important impact. For example, every NUTS level 2 region of France (except Limousin), Lithuania and Portugal had an enterprise birth rate of at least 12.0%; similarly high rates were also recorded in Estonia, Latvia and Malta.

Predominantly urban regions – especially those in and around capital cities – often record the highest enterprise birth rates. In 2022, the capital regions of Czechia, Denmark, Germany, Ireland, Greece, Italy, Lithuania, Austria, Poland, Romania, Slovenia and Finland posted the highest rates of enterprise creation in their respective countries. Several factors may drive these high rates of business formation, including the presence of an innovative environment, research clusters, technology hubs, easier market access, modern infrastructure, or a concentration of skilled labour.

In 2022, 23 NUTS level 2 regions across the EU recorded an enterprise birth rate of at least 14.0% within their business economies (as indicated by the darkest shade of blue in Map 1).

  • The highest rates were observed in Portugal (all 9 regions) and France (8 regions).
    • A peak of 20.5% was recorded in the southern Portuguese region of Península de Setúbal; Grande Lisboa, Algarve and Região Autónoma da Madeira also featured among the 10 EU regions with the highest enterprise birth rates.
    • In France, the outermost regions posted the highest rates of enterprise creation: Guyane, Martinique and Mayotte recorded rates of 19.4%, 19.1% and 18.8%, respectively – the 2nd, 3rd and 4th highest among EU regions. Outside of its outermost regions, the capital region of Ile-de-France had the highest rate of business formation in France, at 16.2%.
  • This group of 23 regions with enterprise birth rates of at least 14.0% also included all 4 regions in the Baltic countries, along with Bucureşti-Ilfov (the capital region of Romania) and Malta.

Rural and less economically developed regions often have lower enterprise birth rates. This may reflect economies which are stable or where existing enterprises successfully adapt to change; alternatively, it may reflect barriers to entrepreneurial activity, for example, cultural attitudes towards risk-taking and entrepreneurship or limited access to capital or skilled labour. In 2022, 18 NUTS level 2 regions had enterprise birth rates for the business economy below 6.5% (they are shown with a yellow shade in Map 1). These regions were primarily located in Austria (7 regions) and Germany (6 regions), with the remainder of this group consisting of 3 regions from Italy and 2 from Spain.

  • In Austria, the lowest enterprise birth rates were recorded in western regions of Tirol and Salzburg (both 5.7%), while Vorarlberg, Niederösterreich and Kärnten also featured among the 10 EU regions with the lowest rates.
  • In Germany, the neighbouring eastern regions of Thüringen (4.8%) and Chemnitz (5.1%) had the lowest enterprise birth rates, while Sachsen-Anhalt also featured among the 10 EU regions with the lowest rates.
  • In Spain, the northern region of La Rioja had the lowest enterprise birth rate, at 5.8% (which was the 5th lowest rate in the EU).
  • In Italy, the northern region of Provincia Autonoma di Bolzano/Bozen had the lowest rate, at 6.2% (which was the 10th lowest rate in the EU).

Map 1: Enterprise birth rate
Source: Eurostat (bd_hgnace_r) and (bd_l_form)


Enterprise death rate

In 2022, the EU’s enterprise death rate was 8.7%

In 2022, 2.8 million enterprises definitively ceased activity within the EU’s business economy; expressed relative to the total enterprise population, this equated to an enterprise death rate of 8.7%. The distribution of enterprise death rates was somewhat skewed: almost 2 out of 5 NUTS level 2 regions for which data are available (138 out of 234, or 59.0%) reported rates below the EU average.

Enterprise death rates for the business economy tended to be within a relatively narrow range across most EU countries. There was generally less variation in enterprise death rates between different regions of the same country than was the case for enterprise birth rates. Nevertheless, it was relatively common for regions with high enterprise birth rates to also record high enterprise death rates. This is not surprising, as dynamic and innovative enterprises entering a market may be in a position to drive less productive incumbents out of the market (‘creative destruction’). Moreover, a more risk-prone culture might lead to the creation of new enterprises that, however, do not stand the test of time.

Figure 1 highlights the NUTS level 2 regions with the highest and lowest enterprise death rates within their business economies in 2022. At the top of the distribution:

  • Estonia reported the highest enterprise death rate, at 25.1%
  • the only other regions in the EU with rates above 20.0% were all located in Bulgaria – Yugozapaden (22.5%), Severoiztochen (21.6%) and Yugoiztochen (21.1%)
  • there were 3 additional Bulgarian regions that recorded enterprise death rates in the range of 15.0% to 20.0% – Yuzhen tsentralen, Severozapaden and Severen tsentralen – which was also the case for the outermost region of Mayotte (France) and the capital region of Eastern and Midland (Ireland).

At the other end of the spectrum, the lowest enterprise death rates were consistently observed in Greece. All 13 Greek regions occupied the bottom ranks of the distribution in 2022, with rates consistently below 5.0%. The island regions of Notio Aigaio (1.6%; 2021 data), Voreio Aigaio (1.9%; 2021 data) and Kriti (2.0%) had the lowest death rates. Outside of Greece, the Austrian regions of Salzburg (5.1%) and Tirol (5.2%) had the lowest enterprise death rates; Belgium (5.2%; national data) had a comparable rate.

High-growth enterprises

In 2022, 9.2% of all enterprises in the EU were high-growth enterprises

There were 155 600 high-growth enterprises across the EU in 2022 (see the shaded box above for a definition). High-growth enterprises accounted for 9.2% of the total number of active enterprises with at least 10 employees in the EU’s business economy. There was a relatively even distribution of high-growth enterprises among NUTS level 2 regions: 110 regions out of the 234 for which data are available (or 47.0%) recorded shares that were equal to or above the EU average.

The presence of high-growth enterprises reflects, at least in part, the underlying structure of each region’s business economy. Several factors tend to support rapid enterprise growth:

  • relatively small enterprises often grow faster than larger ones – a pattern often referred to as the ‘catch-up’ process
  • enterprises located in regions specialised in dynamic sectors of the economy such as information and communication technologies, life sciences or knowledge-intensive services typically grow more rapidly
  • a favourable business environment – such as a well-developed innovation ecosystem, easy access to capital, and a skilled workforce – also helps enterprises expand.

The final part of Figure 1 highlights the NUTS level 2 regions with the highest and lowest shares of high-growth enterprises. In 2022, at least 1 in 5 enterprises in 4 Swedish regions – Övre Norrland, Stockholm, Norra Mellansverige and Västsverige – were classified as high-growth enterprises. The northernmost region of Övre Norrland recorded the highest share, at 21.0%. In fact, the 8 Swedish regions had the 8 highest shares of high-growth enterprises. The next highest shares were observed in the Lithuanian capital region of Sostinės regionas (17.0%) and in the central Greek region of Sterea Elláda (14.6%).

In 2022, most EU countries reported that their capital region had the highest share of high-growth enterprises on their national territory. This pattern likely reflects factors such as a favourable business climate (as mentioned above) alongside a critical mass of potential business and/or household clients. Exceptions included Greece, Spain, France, Italy, the Netherlands, Romania, Slovenia and Sweden, although:

  • Comunidad de Madrid had the 2nd highest share in Spain, behind the autonomous Ciudad de Melilla
  • Ile-de-France had the 4th highest share in France, behind the outermost regions of Mayotte, Guyane and La Réunion
  • Stockholm had the 2nd highest share in Sweden, behind Övre Norrland.

Figure 1 also highlights the 10 NUTS level 2 regions with the lowest shares of high-growth enterprises. They consisted of 9 regions from France and Cyprus; the latter had the lowest share of high-growth enterprises in the EU, at 1.8%. Looking more closely and leaving Cyprus aside, the next 15 lowest shares were all located in France, including 5 predominantly rural regions – Haute-Normandie, Franche-Comté, Champagne-Ardenne, Bourgogne and Corse – where the share of high-growth enterprises was below 5.0%.

Three bar charts showing the enterprise birth rate, the enterprise death rate and the share of high-growth enterprises. Data are shown in percent for 2022. For each indicator, the highest and lowest regional shares are shown, together with the EU average. Data are shown for NUTS level 2 regions. For more details please use the link to the source dataset code below the image.
Figure 1: Business demography
Source: Eurostat (bd_hgnace_r), (bd_l_form) and (bd_hg)

Regional patterns of employment specialisation and concentration

Manufacturing

Lombardia had the largest regional workforce for its manufacturing sector in 2022, with 906 500 people

In 2022, the EU’s business economy – comprising NACE Sections B to N and P to R, as well as Divisions 95 and 96 – employed 160.4 million people. Manufacturing (NACE Section C) – which involves the production of goods and the provision of industrial services for domestic use (investment, further processing or consumption) and/or for export – accounted for 18.7% of the business economy workforce, approximately 30.0 million people. For context, employment in the manufacturing sector was similar to that for distributive trades, which had an 18.6% share of the business economy workforce.

More about the data: structural business statistics

Structural business statistics (SBS) provide detailed data on economic activities across hundreds of sectors, broken down by enterprise size (micro, small, medium-sized and large enterprises) and by region. They provide data covering issues such as labour input, value added, productivity, profitability and investment. This information can be used to explore (among other issues) structural shifts in an economy, national or regional specialisations, and sectoral patterns.

The legal basis for European business statistics changed with the adoption of Regulation (EU) 2019/2152 on European business statistics in November 2019. It created a cross-cutting legal framework for the collection, compilation, transmission and dissemination of statistics, covering the economic activities of market producers within the business economy (as defined by NACE Rev. 2 Sections B to N, P to R and Divisions 95 and 96).

Map 2 shows the relative importance of the manufacturing sector in terms of its employment share within business economies. In 2022, 119 out of 242 NUTS level 2 regions for which data are available – equivalent to 49.2% of all regions – reported a higher share of manufacturing employment than the EU average of 18.7%.

The northern Italian region of Lombardia had the largest manufacturing workforce in the EU, with 906 500 people employed in 2022; this region is specialised in mechanical engineering, metal working, textiles and clothing. Only 2 other regions across the EU employed more than 0.5 million people within manufacturing:

  • Stuttgart (south-west Germany), where 614 200 people worked in the manufacturing sector, with a specialisation in the manufacture of motor vehicles
  • Veneto (north-east Italy), where 548 700 people worked in the manufacturing sector, with specialisations in textiles and clothing, woodworking and furniture.

Across the EU, 24 NUTS level 2 regions had at least 32.0% of their business economy workforce employed within manufacturing in 2022 (as shown by the darkest shade of blue in Map 2); all but 1 of these 24 regions were located in eastern EU countries. The manufacturing sector provided work to at least 32.0% of the business economy workforce in:

  • 7 out of the 8 regions in Czechia (the capital region of Praha being the only exception) – the highest employment shares across the EU were reported in Severovýchod (41.8%) and Střední Morava (40.3%)
  • 3 regions from each of Bulgaria, Hungary, Poland and Romania, with the highest shares in each country reported in Severen tsentralen (38.4%), Közép-Dunántúl (36.6%), Podkarpackie (34.8%) and Vest (35.7%)
  • 2 Croatian regions, with a peak of 37.7% in Sjeverna Hrvatska
  • the regions of Západné Slovensko in Slovakia (36.3%), Vzhodna Slovenija in Slovenia (35.9%) and Comunidad Foral de Navarra in Spain (32.0%).

At the other end of the scale, there were 21 NUTS level 2 regions where manufacturing activities accounted for less than 8.0% of the business economy workforce in 2022. This group primarily included capital regions and/or regions with well-known tourist destinations, both of which are typically dominated by service activities. Leaving aside the atypical autonomous Spanish cities of Ceuta and Melilla, the lowest shares were recorded in the:

  • southern Portuguese region of Algarve (3.3%)
  • Greek island region of Nisia Aigaio (3.4%).

Map 2: Employment in manufacturing
Source: Eurostat (sbs_r_nuts2021), (sbs_sc_ovw) and (sbs_ovw_act)


The EU’s manufacturing base has migrated eastwards

The manufacturing sector has long been regarded as a cornerstone of economic prosperity in the EU. However, over several decades it has experienced wide-ranging transformations, through outsourcing, globalisation, changes to business paradigms (such as just-in-time manufacturing), the growing importance of digital technologies, or concerns linked to sustainable production and the environment.

There has generally been an eastward shift in the EU’s manufacturing base during the last 2 to 3 decades, reflecting, among other factors, differences in:

Eastern EU countries have been increasingly used as manufacturing bases by enterprises from other EU countries (in particular neighbouring countries such as Germany) and by enterprises from non-EU countries wanting a manufacturing base within the EU’s single market. These enterprises often form an integral part of international supply chains, with relatively highly skilled workforces.

In 2022, the 3 largest manufacturing subsectors in the EU – in employment terms and as defined by NACE divisions – were the:

  • manufacture of food products (NACE Division 10) with 4.3 million people or 2.7% of the business economy workforce
  • manufacture of fabricated metal products, except machinery and equipment (NACE Division 25), with 3.7 million people, or 2.3%
  • manufacture of machinery and equipment not elsewhere classified (NACE Division 28), with 3.1 million people, or 1.9%.

There were only 3 other manufacturing subsectors which accounted for at least 1.0% of the EU’s business economy workforce: the manufacture of motor vehicles, trailers and semi-trailers (NACE Division 29; 1.5%), the manufacture of rubber and plastic products (NACE Division 22; 1.0%) and the manufacture of electrical equipment (NACE Division 27; 1.0%).

Figure 2 presents data for 24 different manufacturing subsectors. Each bar represents employment in a specific manufacturing subsector as a share of the business economy workforce. The left- and right-hand ends of each bar show the regions with the lowest and highest shares, while the point where the blue and green segments of each bar meet indicates the EU average. For example, in the manufacture of food products, the Greek region of Ipeiros recorded the highest regional share, with 8.7% of its business economy workforce employed in this activity in 2022 – 3.3 times as high as the EU average of 2.7%.

Primary processing activities are often located close to the source of raw materials

Figure 2 also highlights how employment in various manufacturing subsectors was often highly skewed. In some activities, a few regions recorded very high employment shares, while most other regions had relatively low shares. In statistical terms, this kind of distribution can be referred to as being ‘positively skewed’ and typically results in a long right-hand tail. In Figure 2, this can be seen for those manufacturing activities that have long green bars (representing the upper end of the distribution) and relatively short blue bars (the lower end). For example, the 5 EU regions with the largest workforces in the manufacture of leather and related products (NACE Division 15) – Toscana, Veneto, Marche (all in Italy), Norte (Portugal) and Comunitat Valenciana (Spain) – together accounted for 40% of the EU’s total employment in this subsector.

Manufacturing subsectors that involve primary processing were often located close to the source of their raw materials. This was the case for the manufacture of food products, as there were 4 regions where this subsector accounted for at least 7.5% of employment within the business economy in 2022: Ipeiros and Thessalia (both in Greece), Bretagne (France) and Mazowiecki regionalny (which surrounds the capital region of Poland). La Rioja in Spain (2.9%), Champagne-Ardenne in France (2.1%), Alentejo in Portugal (1.6%) and Trier in Germany (also 1.6%) had the highest employment shares for the manufacturing of beverages (NACE Division 11). Regions specialised in the manufacture of textiles (NACE Division 13) were often located close to an abundant supply of water; Norte in Portugal (2.6%) had the highest regional share. The Croatian region of Panonska Hrvatska had the highest employment share (4.5%) for the manufacture of wood and wood products, except furniture (NACE Division 16), while Mellersta Norrland in Sweden had the highest share (3.1%) for the manufacture of paper and paper products (NACE Division 17).

German regions often specialise in export-orientated subsectors

Germany exports a relatively high proportion of its manufacturing output; this is particularly the case for its motor vehicles, machinery, electrical and chemical subsectors. In 2022 and among NUTS level 2 regions of the EU:

  • Braunschweig in northern Germany had the highest employment share (12.0%) for the manufacture of motor vehicles, trailers and semi-trailers
  • Tübingen in south-west Germany had the highest employment share (7.8%) for the manufacture of machinery and equipment not elsewhere classified
  • Rheinhessen-Pfalz in western Germany had the highest employment share (5.6%) for the manufacture of chemicals and chemical products (NACE Division 20)
  • Oberpfalz in south-eastern Germany had the highest employment share (4.8%) for the manufacture of electrical equipment (NACE Division 27).

The manufacture of transport equipment is characterised by clusters of economic activity

In the EU, clusters of economic activity and highly integrated production chains characterise the manufacture of transport equipment. Over time, some production has moved to exploit efficiency gains in global value chains. For example, this process has seen a redeployment of production towards several eastern EU countries.

In 2022, aside from Braunschweig in Germany (mentioned above), the highest levels of employment specialisation for the manufacture of motor vehicles, trailers and semi-trailers were observed in:

  • the Romanian region of Vest (with an 11.0% share of business economy employment)
  • Střední Čechy and Severovýchod in Czechia (10.3% and 7.7%, respectively)
  • the westernmost Hungarian region of Nyugat-Dunántúl (9.9%).

The French region of Midi-Pyrénées was the most specialised region in the EU for the manufacture of other transport equipment (NACE Division 30), as these activities provided employment to 3.5% of its business economy workforce, with a significant presence in the aerospace subsector.

A stacked bar chart showing the share of business economy employment accounted for by a range of manufacturing activities. Data are shown in percent for 2022. Bars are presented for 24 different manufacturing activities (NACE divisions). For each activity, the highest and lowest regional shares are shown, together with the EU average. The name of the region with the highest share is also given. Data are shown for NUTS level 2 regions. For more details please use the link to the source dataset code below the image.
Figure 2: Regional specialisation among manufacturing activities
Source: Eurostat (sbs_r_nuts2021), (sbs_sc_ovw) and (sbs_ovw_act)

Market services

Some market service activities are widely spread across the EU territory, whereas others are concentrated within close proximity to a mass of potential clients

In 2022, market services – comprising NACE Sections G to N, P to R, as well as Divisions 95 and 96 – employed 112.7 million people, accounting for 70.3% of total employment across the EU’s business economy.

There were 15 NUTS level 2 regions across the EU where market services provided more than 85.0% of the business economy workforce in 2022:

  • the capital regions of Berlin (Germany), Attiki (Greece), Comunidad de Madrid (Spain), Noord-Holland (the Netherlands), Wien (Austria) and Grande Lisboa (Portugal)
  • the popular holiday destinations of Ionia Nisia, Notio Aigaio, Kriti (all in Greece), Canarias (Spain) and Algarve (Portugal)
  • 3 additional regions from the Netherlands – Flevoland, Utrecht and Zuid-Holland – as well as the northern German region of Hamburg.

Figure 3 presents information for 43 different market service activities, highlighting the NUTS level 2 regions with the highest degrees of employment specialisation. Variations in employment specialisation may reflect, among other issues, access to skilled labour, the adequate provision of infrastructure, climatic and geographic conditions, proximity to a critical mass of customers, market access or legislative constraints.

Retail trade (NACE Division 47) accounted for 10.3% of the EU’s business economy workforce in 2022. Wholesale trade (NACE Division 46) had the next highest share, at 6.0%, followed by food and beverage service activities (NACE Division 56; 5.2%) and human health activities (NACE Division 86; 5.1%). These are all examples of service activities that are found in every NUTS level 2 region of the EU.

Capital regions were among some of the most specialised regions for a range of service activities that rely on the close proximity of a large number of potential clients (be these other businesses, households or governments). For example, in 2022:

  • the Área Metropolitana de Lisboa (Portugal) had the highest employment share for office administrative/support and other business support activities, at 9.1%
  • Yugozapaden (Bulgaria) for computer programming, consultancy and related activities (8.6%)
  • Comunidad de Madrid for activities auxiliary to financial services and insurance activities (4.5%)
  • Budapest (Hungary) for legal and accounting activities (4.4%)
  • Bruxelles-Capitale/Brussels Hoofdstedelijk (Belgium) for insurance and pension funding, except social security (2.9%)
  • Praha (Czechia) for other professional, scientific and technical activities (2.4%)
  • Bratislavský kraj (Slovakia) for advertising and market research (2.3%) and for telecommunications (2.2%).
A stacked bar chart showing the share of business economy employment accounted for by a range of market service activities. Data are shown in percent for 2022. Bars are presented for 43 different activities (NACE divisions). For each activity, the highest and lowest regional shares are shown, together with the EU average. The name of the region with the highest share is also given. Data are shown for NUTS level 2 regions. For more details please use the link to the source dataset code below the image.
Figure 3: Regional specialisation among market service activities
Source: Eurostat (sbs_r_nuts2021), (sbs_sc_ovw) and (sbs_ovw_act)

Knowledge-intensive services

More about the data: knowledge-intensive services

Knowledge-intensive services are defined as services that rely heavily on knowledge, skills and innovation to provide value. These services are typically found in subsectors such as information technology, financial services, business consulting, legal services and other specialised professional services. They require a highly-educated workforce and are often considered as essential drivers of economic growth for advanced economies.

Within this section a distinction is made between 2 different aggregates:

  • knowledge-intensive market services (excluding financial intermediation and high-tech services), composed of the following activities: water transport (NACE Division 50); air transport (NACE Division 51); legal and accounting activities (NACE Division 69); activities of head offices, management consultancy activities (NACE Division 70); architectural and engineering activities, technical testing and analysis (NACE Division 71); advertising and market research (NACE Division 73); other professional, scientific and technical activities (NACE Division 74); employment activities (NACE Division 78); security and investigation activities (NACE Division 80)
  • knowledge-intensive high-technology services, composed of the following activities: motion picture, video and television programme production, sound recording and music publishing activities (NACE Division 59); programming and broadcasting activities (NACE Division 60); telecommunications (NACE Division 61); computer programming, consultancy and related activities (NACE Division 62); information service activities (NACE Division 63); scientific research and development (NACE Division 72).

In Helsinki-Uusimaa – the capital region of Finland – knowledge-intensive market services accounted for 20.0% of the business economy workforce in 2022

The information presented in Map 3 highlights regional patterns of employment specialisation and concentration for knowledge-intensive market services (excluding financial intermediation and high-tech services). In 2022, these services employed 17.5 million people across the EU, accounting for just over a tenth (10.9%) of the business economy workforce.

Among NUTS level 2 regions, the highest numbers of people employed in knowledge-intensive market services in 2022 were found in:

  • the French capital region of Ile-de-France (961 700 people employed)
  • the northern Italian region of Lombardia (510 000)
  • the Spanish capital region of Comunidad de Madrid (439 000).

In 2022, knowledge-intensive market services accounted for at least 16.0% of the business economy workforce in 27 regions across the EU (as shown by the darkest shade of blue in Map 3). This group consisted mainly of capital regions, but also included several densely-populated regions in Belgium and the Netherlands.

The highest regional share was recorded in Helsinki-Uusimaa – the capital region of Finland – where, in 2022, 20.0% of the business economy workforce was employed in knowledge-intensive market services (almost double the EU average). The next highest regional shares were recorded in:

  • the Czech capital region of Praha (19.3%)
  • the French capital region of Ile-de-France, as well as the Belgian region of Prov. Brabant wallon and the Dutch region of Zuid-Holland (all 19.2%)
  • the Dutch capital region of Noord-Holland (18.9%)
  • the Hungarian and Slovakian capital regions of Budapest and Bratislavský kraj (both 18.0%).

Within some EU countries there were considerable inter-regional contrasts, suggesting an urban-rural divide in the development of knowledge-intensive market services. This was particularly apparent in several eastern EU countries, where rural regions face structural challenges related to infrastructure, outward migration and low investment levels. For example, the share of knowledge-intensive market services in the business economy workforce of:

  • the Slovakian capital region of Bratislavský kraj (18.0%) was 3.6 times as high as in the eastern region of Východné Slovensko (5.0%)
  • the Bulgarian capital region of Yugozapaden (12.7%) was 3.2 times as high as in the north-western region of Severozapaden (4.0%)
  • the Romanian capital region of Bucureşti-Ilfov (16.3%) was 3.0 times as high as in the north-eastern region of Nord-Est (5.4%).

Compet icon RYB2025.png

Map 3: Employment in knowledge-intensive market services
Source: Eurostat (sbs_r_nuts2021), (sbs_sc_ovw) and (sbs_ovw_act)


Knowledge-intensive high-technology services

In 2022, knowledge-intensive high-technology services employed 6.9 million people across the EU. There were 6 NUTS level 2 regions where more than 150 000 people were employed in these services – all of them either capital regions or economically dominant hubs for high-tech employment:

  • the French capital region of Ile-de-France (447 100)
  • the Spanish capital region of Comunidad de Madrid (256 600)
  • the German regions of Oberbayern (194 700) and the capital Berlin (172 500)
  • the northern Italian region of Lombardia (180 900)
  • the Polish capital region of Warszawski stołeczny (177 200).

Knowledge-intensive high-technology services accounted for 4.3% of the EU’s business economy workforce in 2022. The regional distribution of this workforce was heavily skewed: only 57 out of 244 NUTS level 2 regions for which data are available reported an employment share equal to or greater than the EU average – equivalent to 23.4% of all regions. Notably, the 14 regions with the highest shares of employment in these services were all capital regions, with double-digit shares observed in:

  • the Bulgarian capital region of Yugozapaden (12.7%)
  • the Hungarian capital region of Budapest (11.0%)
  • the Romanian capital region of Bucureşti-Ilfov (10.5%)
  • the Croatian capital region of Grad Zagreb (10.3%)
  • the Slovakian capital region of Bratislavský kraj (10.1%)
  • the German capital region of Berlin (10.0%).

The high concentration of knowledge-intensive high-technology services employment in capital regions may reflect a number of different factors, including:

  • the presence of universities and research institutes, supplying skilled labour
  • higher levels of digital skills among urban populations
  • capital regions acting as magnets for internal migration, attracting talent from smaller cities and rural regions
  • relatively high levels of foreign direct investment and offshoring (when global enterprises establish operations in capital cities).

At the lower end of the distribution, there were 21 predominantly rural NUTS level 2 regions – often in southern EU countries – where knowledge-intensive high-technology services accounted for less than 1.5% of the business economy workforce in 2022. Specifically, this group included 6 regions from Greece, 5 regions from France, 3 regions from both Spain and Portugal, as well as individual regions from Belgium, Bulgaria, Germany and the Netherlands. The lowest shares – below 1.0% – were observed in the French outermost region of Mayotte, the autonomous Spanish cities and some of the Greek islands (Ionia Nisia and Notio Aigaio).

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Map 4: Employment in knowledge-intensive high-technology services
Source: Eurostat (sbs_r_nuts2021), (sbs_sc_ovw) and (sbs_ovw_act)


Innovative enterprises

Regional analyses of innovation statistics across the EU are essential for understanding how innovative capacity and performance vary across different territories. This may help identify strengths, disparities and emerging trends, enabling policymakers to design targeted strategies that promote innovation as a key driver of economic growth, resilience and sustainability.

More about the data: innovation

The EU’s Community Innovation Survey (CIS) is the EU’s primary source of data on innovation activity within businesses. Conducted biennially across the EU, EFTA and candidate countries, the CIS collects harmonised statistics on various types of innovation – ‘product innovations’, ‘business process innovations’ – for enterprises of different sizes, across a wide range of economic sectors. It offers a detailed insight into the drivers, barriers and outcomes of innovation. The survey supports comparative analysis across countries and regions, tracking changes over time and informing initiatives to strengthen Europe’s innovation capacity and competitiveness in a rapidly changing global economy.

The CIS was first launched in the 1990s and became a regular biennial data collection in 2004. The information presented below relate to the CIS 2022 exercise, which is based on international standards for conceptualising and collecting data on innovation, as laid out in the Oslo Manual (4th edition). The data for CIS 2022 were collected on the basis of the new European business statistics framework, as defined in Regulation (EU) 2022/1092. The target population of the CIS 2022 concerns enterprises within NACE Sections B to E, H, J and K, as well as Divisions 46, 71, 72 and 73, hereafter referred to as the ‘business economy’. For more information, refer to the European business statistics methodological manual for statistics on business innovation – 2024 edition.

The statistics presented below are based on a 3-year reference period from 2020 to 2022 and cover:

  • NUTS level 2 data for 21 EU countries
  • NUTS level 1 data for Belgium and Austria
  • national data for Denmark, Germany, France and the Netherlands; this is also the case for Norway and Türkiye.

Innovation-active enterprises

Approximately 50% of all SMEs in the EU were considered as innovation-active during the period 2020 to 2022

An innovation-active enterprise is 1 which has engaged in any form of innovation activity during a given period, irrespective of whether it resulted in a successful innovation, a new product sold on the market or a new process brought to use, during the last 3 years. As such, it may refer to an enterprise that:

  • introduces a product or business process innovation
  • has on-going innovation activities
  • has abandoned an innovation project (in other words, started but did not complete an innovation)
  • or exhibits some or all of the above at the same time.

Based on the latest information from CIS 2022, there were 350 000 small and medium-sized enterprises (SMEs) with 10 to 249 employees that were innovation-active during the period 2020 to 2022; they represented 50.3% of all SMEs across the EU. Map 5 shows the regional distribution within the EU, with the highest shares of innovation-active SMEs concentrated in Belgium, Greece, Italy, Slovenia, Finland and Sweden; more than 50% of all SMEs were innovation-active in Denmark, Germany, France and the Netherlands too.

During the period 2020 to 2022, the highest regional counts of innovation-active enterprises were in:

  • the northern Italian regions of Lombardia (17 800), Veneto (8 800), Emilia-Romagna (6 600) and Piemonte (5 300)
  • the Belgian region of Vlaams Gewest (6 900)
  • the Spanish region of Cataluña (5 100).

Over the same period, only 5 regions across the EU reported more than 70.0% of SMEs being innovation-active:

  • the Greek regions of Kriti (77.8%), Voreio Aigaio (75.8%) and Ionia Nisia (72.9%)
  • the Belgian region of Vlaams Gewest (74.7%)
  • the southern Italian region of Calabria (70.3%).

Note that several of these regions had very low overall counts of innovation-active SMEs within the survey’s activity coverage. For example, there were fewer than 100 such enterprises in the Greek regions of Voreio Aigaio and Ionia Nisia.

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Map 5: Innovation-active SMEs
Source: Eurostat (inn_cis13_bas_r) and (inn_cis13_bas)


Map 6 and Map 7 provide more detailed information about the innovative activities across the EU, distinguishing between SMEs introducing product innovations and SMEs introducing business process innovations. The former include innovations that introduce a good or service that is new or significantly improved with respect to its characteristics or intended uses (in other words, significant improvements in technical specifications, components and materials, incorporated software, user friendliness or other functional characteristics).

During the period 2020 to 2022, there were 184 500 SMEs across the EU’s business economy that introduced product innovations; together, they represented more than 1 in 4 (26.5%) SMEs in the EU. There were 6 NUTS level 2 regions that reported more than 3 000 SMEs introducing product innovations:

  • the Italian regions of Lombardia (10 700), Veneto (4 700), Emilia-Romagna (4 100) and Piemonte (3 200)
  • the Belgian region of Vlaams Gewest (3 500)
  • the Greek capital region of Attiki (3 200).

In relative terms, there were 3 regions across the EU where more than 50% of all SMEs introduced product innovations during the period 2020 to 2022, all in Greece: Voreio Aigaio (67.4%), Ionia Nisia (65.4%) and Kriti (61.2%). In addition to these 3 Greek regions, there were 11 other regions (as well as Denmark; national data) across the EU where more than 40.0% of SMEs introduced product innovations (as shown by the darkest shade of blue in Map 6):

  • 7 other Greek regions (the exceptions – with shares below 40.0% – were Notio Aigaio, Ipeiros and Dytiki Makedonia)
  • 3 Italian regions – Calabria, Lombardia and Piemonte
  • the Swedish capital region of Stockholm.

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Map 6: SMEs introducing product innovations
Source: Eurostat (inn_cis13_bas_r) and (inn_cis13_bas)


Map 7 presents information on the share of SMEs introducing business process innovations. A process innovation involves the implementation of a new or significantly improved production or delivery method (including substantial changes in techniques, equipment and/or software). These innovations also cover new or significantly improved techniques, equipment and software in ancillary support activities, such as purchasing, accounting, computing and maintenance. Process innovations can reduce the unit production or delivery costs, improve quality, or enable the provision of new or significantly improved products. Examples include the introduction of GPS tracking devices in transport services, the implementation of a new reservation system in a travel agency, the development of new project management techniques in a consultancy firm, or the adoption of new methods for pre-producing parts and assembling them into finished products in manufacturing.

During the period 2020 to 2022, there were 290 400 SMEs across the EU’s business economy that introduced business process innovations. Together, they represented more than 2 out of 5 (41.7%) SMEs in the EU.

The highest regional count of SMEs introducing business process innovations was recorded in the northern Italian region of Lombardia (15 900) – the same region that had the highest count of SMEs introducing product innovations. There were 12 other regions across the EU that had more than 3 000 SMEs introducing business process innovations:

  • 6 of them were located in Italy – Veneto, Emilia-Romagna, Toscana, Piemonte, Campania and Lazio
  • the Belgian region of Vlaams Gewest
  • the Greek capital region of Attiki
  • the Spanish region of Cataluña
  • the Portuguese region of Norte
  • the Austrian regions of Westösterreich and Ostösterreich (NUTS level 1).

In relative terms, there were 16 NUTS level 2 regions where at least 57.0% of all SMEs introduced business process innovations (as shown by the darkest shade of blue in Map 7). These 16 regions were concentrated in Greece (8 regions) and Italy (7 regions), with the Belgian region of Vlaams Gewest (NUTS level 1) being the only other region recording a relatively high share of business process innovators.

More than 3 in 4 SMEs in the Greek island regions of Kriti (75.9%) and Voreio Aigaio (75.8%) introduced business process innovations during the period 2020 to 2022. The next highest share was also recorded in a Greek island region – Ionia Nisia (72.0%) – followed by Vlaams Gewest in Belgium (66.6%) and Calabria in southern Italy (65.2%). As noted above, several of the Greek regions with relatively high shares had quite low overall numbers of SMEs (within the survey’s activity coverage) introducing business process innovations; for example, Voreio Aigaio and Ionia Nisia had fewer than 100 each.

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Map 7: SMEs introducing business process innovations
Source: Eurostat (inn_cis13_bas_r) and (inn_cis13_bas)


Map 5 indicated that just over half (50.3%) of all SMEs in the EU’s business economy were innovation-active during the period 2020 to 2022. A higher share of SME employees – 58.0% – worked in innovation-active enterprises, suggesting that, on average, these SMEs were larger than their non-innovating counterparts.

Map 8 shows a skewed distribution for the share of employees in innovation-active enterprises: 36 NUTS level 2 regions had shares of employees working in innovation-active SMEs that were above the EU average, while 112 regions had below-average shares. It should be noted that Denmark, Germany, France and the Netherlands are all counted as single regions within the group of 36 with above-average shares, whereas in practice they would represent far larger numbers of regions (if NUTS level 2 data were available). In particular, the German average (71.3%) pulls the EU average up substantially.

The Italian region of Lombardia had the highest regional count of employees working in innovation-active SMEs, at 432 000. This was considerably larger than in any other region. Only 3 other regions had more than 200 000 employees working in innovation-active SMEs:

  • the Belgian region of Vlaams Gewest (284 000; NUTS level 1)
  • the Spanish region of Cataluña (232 000)
  • the Italian region of Veneto (219 000).

By contrast, there were fewer than 5 000 employees working in innovation-active SMEs in 14 regions, most of which were located in southern EU countries:

  • 5 regions in Greece (3 of which were island regions)
  • 3 regions in each of Italy and Romania
  • 2 island regions in Portugal
  • the island region of Åland in Finland.

In the Belgian region of Vlaams Gewest, more than 4 out of 5 SME employees (80.2%) were working for an innovation-active enterprise during the period 2020 to 2022. There were 13 other regions across the EU that recorded shares of at least 65.5% (as shown by the darkest shade of blue in Map 8), including the capital regions of Greece, Finland, Slovenia, Belgium, Portugal and Sweden. There was also a relatively high share of SME employees working for innovation-active enterprises in Germany (71.3%).

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Map 8: Employees in innovation-active SMEs
Source: Eurostat (inn_cis13_bas_r) and (inn_cis13_bas)


In 2022, EU SMEs generated €725.9 billion of turnover from innovative products; this figure includes turnover from new or significantly improved products that were new to the market and/or new to the firm. In relative terms, the share of total turnover among SMEs that was derived from innovative products was 8.8%. There was a somewhat skewed distribution: 48 NUTS level 2 regions had shares that were above the EU average; the Austrian region of Südösterreich had the same share as the EU; 71 regions had below-average shares. In particular, the German and French averages (5.3% and 4.4%, respectively) pulled down the EU average.

In absolute terms, the Spanish capital region of Comunidad de Madrid recorded the highest level of turnover derived from innovative products (€23.2 billion in 2022). The next highest value was recorded in another Spanish region, namely, Cataluña (€18.7 billion), followed by the Greek, Portuguese and Irish capital city regions. It should however be noted that there are no regional data available for Denmark, Germany, France, Italy and the Netherlands.

Map 9 shows there were 13 regions across the EU where the share of total turnover among SMEs derived from innovative products was at least 15.0% in 2022 (as shown by the darkest shade of blue). These regions were predominantly located in southern EU countries, with a cluster of 5 regions in Greece. Within this group of 13, there were 4 regions that recorded shares of more than 20.0%:

  • Panonska Hrvatska in Croatia (33.9%)
  • Northern and Western in Ireland (25.4%)
  • Denmark (national data only; 24.2%)
  • Grande Lisboa in Portugal (22.4%).

By contrast, there were 15 NUTS level 2 regions across the EU that reported a share of total turnover among SMEs derived from innovative products that was below 2.5% (as shown by the lightest shade in Map 9). The regions in this group were predominantly located in eastern EU countries, with:

  • 6 regions in Poland
  • 5 regions in Romania
  • 2 regions in Bulgaria
  • 1 region in Hungary
  • a single southern region, Malta.

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Map 9: Turnover from innovative products in SMEs
Source: Eurostat (inn_cis13_prodt_r), (inn_cis13_prodt), (inn_cis13_bas_r) and (inn_cis13_bas)


Source data for figures and maps

Data sources

Enterprise demography

As of reference year 2021, regional statistics for enterprise births, enterprise deaths and high-growth enterprises have a new legal basis – Regulation (EU) 2019/2152 on European business statistics. It provides the basis for business demography data by legislating to have regional breakdowns and size class information available. The statistical unit used for regional business demography statistics is the enterprise.

Structural business statistics

European structural business statistics cover the structure, economic activities and performance of businesses. They provide users and key policymakers with much needed information for decision-making, covering the ‘business economy’ (defined here as NACE Sections B to N and P to R, as well as Divisions 95 and 96) which includes industry, construction, distributive trades and other market services.

Regulation (EU) 2019/2152 applies from the 2021 reference year onwards and has broadened the activity coverage to include education (NACE Section P); human health and social work activities (NACE Section Q); arts, entertainment and recreation (NACE Section R); and other personal service activities (NACE Division 96).

Regional structural business statistics are compiled for the number of people employed (as used in this chapter), as well as for the number of local units and for wages and salaries. The data presented in this chapter cover the ‘business economy’ and therefore exclude agricultural, forestry and fishing activities (NACE Section A), as well as public administration and defence, compulsory social security (NACE Section O) and the activities of membership organisations (Division 94).

The statistical unit used for regional structural business statistics is generally the local unit, which is an enterprise or part of an enterprise (for example, a workshop, factory, warehouse, office, or depot) that is situated in a geographically identified place.

The nature of regional structural business statistics – combining a very detailed level of the activity classification with the regional classification – means that certain data cells are not disclosed/published for reasons of statistical confidentiality.

Community innovation survey

The Community innovation survey (CIS) is a data collection exercise that focuses on business innovation in Europe. It provides information about the innovation activities of enterprises, the environment they operate in and their ability to generate economic value by introducing new products or improving production processes and/or other business operations.

The legal basis for the CIS is Commission Implementing Regulation (EU) 2022/1092 laying down technical specifications of data requirements for the topic ‘Innovation’ pursuant to Regulation (EU) 2019/2152. The regional information presented in this chapter has no legal basis. Rather, these statistics are provided on a voluntary basis by the EU countries.

The CIS provides information that may be analysed according to an enterprise’s innovation profile, economic activity (as defined by NACE), size class and county/region. The results are published for EU countries, Norway and Türkiye. Most CIS statistics refer to a 3-year observation period running from 2020 to 2022. However, data for turnover and employment relate to a single calendar year (namely, 2022).

The statistical population for the CIS is all enterprises with 10 or more employees in NACE Sections B–E, H, J–K and Divisions 46 and 71 to 73. The regional data presented in this chapter refer to the innovation activities of small and medium-sized enterprises (SMEs) with 10 to 249 employees.

The concepts used in the CIS are in line with the Oslo Manual, which is the internationally recognised standard for compiling innovation statistics.

For more information on the CIS methodology, please refer to the European business statistics methodological manual for statistics on business innovation – 2024 edition.

Indicator definitions

Enterprise demography

Within the context of enterprise demography statistics, an enterprise birth concerns the creation of a combination of production factors with the restriction that no other enterprises are involved in the event. As such, births do not include entries into the enterprise population due to mergers, break-ups, split-offs or restructurings of existing enterprises, nor do they include entries into a subpopulation resulting only from a change of activity. Rather, an enterprise birth occurs when an enterprise starts a new activity with new production factors and new jobs created. If a dormant unit is reactivated within 2 years, this event is not considered as an enterprise birth.

An enterprise death is the dissolution of a combination of production factors, again with the restriction that no other enterprises are involved in the event. As such, deaths do not include exits from the enterprise population due to mergers, take-overs, break-ups or restructurings of existing enterprises, or exits from a subpopulation resulting only from a change of activity. An enterprise is included in the count of deaths only if it is not reactivated within 2 years.

High-growth enterprises are defined as those with employment growth of more than 10%. Rates of change are based on average annualised growth for the number of (paid) employees over a 3-year period (t-3 to t). To be classified as ‘high growth’, an enterprise must have had at least 10 employees at the beginning of the period under consideration.

Employment

The structural business statistics presented in this chapter are based on a count of the number of people employed. This indicator is defined as the total number of people who work in the observation unit, as well as people who work outside the unit who belong to it and are paid by it (for example, sales representatives, delivery personnel, repair and maintenance personnel). As well as (paid) employees, the number of people employed includes working proprietors, partners working regularly in the unit and unpaid family workers.

Innovation-active enterprises

An enterprise is considered to be innovation-active if, during the reference period, it successfully introduced a product or business process innovation, had on-going innovation activities, abandoned innovation activities, completed these activities but had not yet introduced an innovation, or was engaged in research and development.

Business process innovation

A business process innovation is a new or improved business process for 1 or more business functions that differs significantly from the firm’s previous business processes and that has been brought into use by the firm. The characteristics of an improved business function include greater efficacy, resource efficiency, reliability and resilience, affordability, and convenience and usability for those involved in the business process, either external or internal to the firm. Business process innovations are implemented when they are brought into use by the firm in its internal or outward-facing operations. Business process innovations include the following functional categories:

  • production of goods and services
  • distribution and logistics
  • marketing and sales
  • information and communication systems
  • administration and management
  • product and business process development.

Product innovation

A product innovation is the introduction of a good or service that is new or significantly improved with respect to its characteristics or intended uses. This includes significant improvements in technical specifications, components and materials, incorporated software, user friendliness or other functional characteristics. Product innovations can use new knowledge or technologies, or can be based on new uses or combinations of existing knowledge or technologies. The term ‘product’ is used to cover both goods and services.

Context

The EU’s business and industrial policy is designed to:

  • strengthen its industrial base
  • stimulate an entrepreneurial culture and job creation
  • promote the transition to a zero-carbon economy
  • reduce red tape and help small businesses to do business
  • support innovative enterprises
  • open-up external markets by developing trade agreements
  • prevent unfair competition.

Industrial policy

In September 2017, the European Commission outlined a comprehensive renewal of its industrial policy strategy bringing together existing and new cross-cutting and sector-specific initiatives, with the goal of making European industry a world leader in innovation, digitisation and decarbonisation – Investing in a smart, innovative and sustainable industry – A renewed EU Industrial Policy Strategy (COM(2017) 479 final).

In November 2018, the European Commission presented a fresh assessment of the situation – The Single Market: Europe’s best asset in a changing world – which provided details for a range of alternatives to develop the single market, while exploiting its full potential in a digital era and ensuring sustainability. In March 2020, these ideas were further developed within A new industrial strategy for Europe (COM(2020) 102 final), designed to help deliver 3 key priorities:

  • maintaining global competitiveness
  • making Europe climate-neutral by 2050
  • shaping Europe’s digital future.

In the aftermath of the COVID-19 pandemic, the EU’s industrial strategy was updated – Updating the 2020 New Industrial Strategy: Building a stronger Single Market for Europe’s recovery (COM(2021) 350 final) – with actions designed to assist in the transition towards a green, digital and resilient economy. The pandemic illustrated the need for a more robust industrial model, as businesses suffered from disruptions to global supply chains. It also highlighted a need to address strategic dependencies – both technological and industrial – across a broad range of activities, such as those concerning energy, raw materials, semiconductors, pharmaceuticals and other health-related products.

Businesses in the EU are leaders in many industrial, construction-related and service sectors. However, the global business environment continues to undergo rapid change. This may take the form of technological change, developing patterns of trade and investment, increased awareness of environmental responsibilities, the introduction of new and more flexible working practices, or sudden economic shocks (such as the COVID-19 pandemic, the effects of Russia’s war of aggression against Ukraine, or uncertainty surrounding trade relationships). Changes such as these may disrupt markets and supply chains, impacting how businesses work. To remain competitive, EU businesses often need to innovate, embrace technological change, adopt methods that use less energy, reduce waste and avoid pollution, and/or invest in skills.

Single market strategy

The EU’s single market allows people, goods, services and money to move around the EU almost as freely as within a country. EU citizens can study, live, shop, work and retire in any EU country, while enjoying products from all over the EU. The single market gives business a large domestic market, stimulating trade and competition, and improving efficiency. Hundreds of technical, legal and bureaucratic barriers to free trade and free movement between EU countries have been removed. As a result, businesses have expanded their operations and competition has brought prices down and given consumers more choice.

Some barriers to a fully functioning single market remain. With this in mind, the EU is working to:

  • address current regulatory or administrative obstacles that prevent people from easily buying or selling goods and services from or in another EU country
  • make it easier for businesses – small and medium-sized enterprises (SMEs) as well as larger enterprises – to raise money
  • encourage workers to take up jobs in other EU countries in order to fill vacancies and meet the need for special skills
  • prevent social dumping, the practice of implementing pay and or working/living conditions below those specified by law or collective agreements or that are otherwise prevalent
  • boost cooperation between national tax authorities
  • establish a common consolidated corporate tax base in the EU and a financial transaction tax.

Green Deal Industrial Plan

It is widely agreed that the 2020s will be key for limiting the rise in global temperatures, as well as taking the steps that are necessary for the EU’s net-zero ambitions. However, these challenges also bring opportunities, as they may act as a catalyst for investment in clean energies and industries. The EU has a detailed framework in place for the transformation of EU industry, including:

In February 2023, the European Commission presented a range of new ideas in A Green Deal Industrial Plan for the Net-Zero Age (COM(2023) 62 final). Among other aspects, it highlighted:

  • that phasing-out Russian fossil fuels was accelerating a new industrial revolution
  • the possibilities for developing a wide range of net-zero technologies in transport, buildings, manufacturing, energy, as well as new markets
  • the need to ensure job transitions and quality job creation through training and education.

This new plan aims to ensure that the EU becomes a global leader in the net-zero industrial age. It highlights the need to increase technological developments dramatically, as well as the manufacture and installation of net-zero products, and is based on 4 pillars:

  • a predictable and simplified regulatory environment
  • faster access to sufficient funding
  • skills
  • open trade for resilient supply chains.

European Innovation Agenda

The New European Innovation Agenda (COM(2022) 332 final) aims to position the EU as a global leader in deep-tech innovation. This kind of innovation, rooted in advanced scientific research and engineering breakthroughs, typically involves complex technologies that have the potential to create radical change in how industries operate or how global challenges – such as climate change, digital transformation and security issues for food, energy and raw materials – are addressed.

The agenda focuses on scaling up start-ups, strengthening tech ecosystems, improving access to venture capital and promoting innovation-friendly regulation.

To accelerate the growth and impact of innovation, the agenda outlines 25 actions across 5 flagship areas:

  • funding scale-ups – mobilising private and institutional investment
  • enabling innovation – creating experimental regulatory environments and using public procurement to drive innovation
  • strengthening ecosystems – building regional innovation valleys and inter-regional projects to reduce the innovation gap across EU countries
  • talent development – attracting and retaining deep-tech talent through initiatives like start-up internships, an EU talent pool and support for female entrepreneurs
  • better policy tools – enhancing data, definitions and coordination to improve innovation policymaking across the EU.

For the latest information concerning the progress made and impact of policy actions, please refer to a Report on the state of play of the new European innovation agenda.

This article forms part of Eurostat’s annual flagship publication, the Eurostat regional yearbook.

You can explore the maps interactively using Eurostat’s Statistical Atlas.

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Database

Business demography by legal form and NACE Rev. 2 activity (bd_l_form)
High growth enterprises and related employment by NACE Rev. 2 activity (bd_hg)
Regional business demography (bd_r)
Business demography and high growth enterprises by NACE Rev. 2 activity and NUTS 3 regions (bd_hgnace_r)
Business demography by size class and NUTS 3 regions (bd_size_r)
Regional business demography (reg_bd)
Enterprise statistics on the whole business population (sbs_ovw)
Enterprise statistics – regional data (sbs_r)
Enterprises by NUTS 2 regions and NACE Rev. 2 activity (sbs_r_nuts2021)
Community innovation survey (inn)
Community innovation survey 2022 (CIS2022) (inn_cis13)
Information on enterprises (inn_cis13_info)
Innovation (inn_cis13_inno)
Regional business innovation (inn_cis13_r)

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