Regional and sectoral variations in the ability to attract funding from the European Union's Seventh Framework Program and Horizon 2020

The funding from the European Union's Framework Programs for Research and Innovation (EU FPs) is skewed across European countries and institutions. The goal of this article is to deepen our understanding of this skewness by incorporating a regional (NUTS-2) and a sectoral (higher education sector and private sector) perspective when studying the ability to attract 71.6 billion euros of research funding distributed by the EU Framework Programs between 2007 and 2020, and to explore how it changed from FP7 to Horizon 2020. We explore the ability to attract grant funding per unit of R&D personnel, and how it is affected by a region's volume of research personnel, R&D investments, research intensity, level of development, and mediated by the amount of funding requested. In the private sector, we find that several Southern European regions are highly capable of attracting funding, primarily through a high proposal intensity, e.g., large amounts of funding requested. In the higher education sector, regions in the so-called "blue banana" are particularly able to attract funding, due to high levels of R&D investments, strong research intensity, and a high amount of funding requested. From FP7 to Horizon 2020, we observe increasing divergence in the ability to attract funding in the private sector, in favor of peripheral regions, which aligns with the aims of the European Commission's cohesion policy.