From analysis to action: Harnessing local policies to boost productivity

As industries evolve rapidly due to technological advancements, climate objectives, and changing geopolitical equilibria, regions experience intensified dynamics, because many tradable sectors are highly spatially concentrated. To minimise the costs and harness the full potential of these transformations, policy makers need to activate a synergic policy mix — aligning economic, environmental, and social objectives, and tailoring interventions to the local context. The session explores the key challenges and trade-offs faced by regions in times of industrial transformation and discusses how coordinated and place-based industrial strategies can support successful structural change.

At the heart of industrial transformations are workers who drive the change, making it essential to develop labour markets that can adapt to new demands and provide the right skills. While skill shortages and an aging workforce are widespread concerns, each OECD region faces distinct challenges in adapting its labour market to the demands of a rapidly evolving production system. The diffusion of generative artificial intelligence may yield large productivity gains, but it may also drastically and rapidly reduce the demand for specific skills. This session focuses on local labour market policies and innovative solutions aimed at bridging skill gaps, increasing labour market participation, and enhancing workforce mobility. In addition, it will explore the future of work, discuss how workers can cope with changes brought by new technologies and what kind of cities and regions are best positioned to embrace these changes. 

Aggregate figures on local economic growth can mask important disparities between demographic groups within the same community and between geographical areas within the same region. Local economic structures cause regions to react to shocks differently, with some areas being disproportionately affected due to their reliance on specific industries. Factors such as education levels, gender, age, place of birth, and the skill content of occupations further determine who benefits most from growth, and who is left behind. Public investments and local leadership are crucial to ensure that the positive outcomes of successful transformations are shared with vulnerable groups. In this session, we explore how local development strategies can ensure that productivity gains are shared equitably across all workers and residents.

As regions transition to a greener, more sustainable economy, they face the challenge of balancing environmental goals with other socio-economic objectives. Along the way, regions may find themselves confronted with important trade-offs. Specific local conditions, such as limited access to renewable energy resources or reliance on carbon-intensive industries, make the green transition more challenging for some places. This session will explore how regions can revitalise industrial sectors while promoting sustainability, focusing on how green technologies and practices can enhance, rather than compromise, regional productivity.

Innovation thrives on the spatial concentration of knowledge, where frequent interactions enable the encounter of complementary skills and foster contamination across different disciplines. Research institutions play an important role in local innovation systems, hosting a pool of researchers and acting as key sources of new knowledge. However, linkages between research and firms do not happen automatically. They require deliberate strategies, structures, and policies to bridge the gap between academic research and industry application. In this session, we focus on mechanisms that help facilitate knowledge flows between different innovation system actors and discuss successful local innovation strategies for harnessing productivity growth.

Economic growth relies on investments in infrastructure, technology, and skills. Yet, some regions suffer from low investment rates due to short-term priorities and a focus on immediate consumption. This issue is further compounded by conditions of uncertainty, which may deter both local and foreign investment. Foreign investment tends to be highly concentrated in only a few regions within a country. The spatial concentration of capital exacerbates regional disparities, making it harder for some areas to attract the necessary resources for growth. This roundtable discusses policy frameworks for creating stable, long-term conditions that encourage investment across all regions, promoting innovation, and supporting industrial transitions.

The conference is open to policy makers, academics, experts and practitioners from national and local governments, international organisations, research centres and think-tanks.

All sessions will be conducted in English. Italian interpretation will be available during the sessions. The pre-event study visit and the post-event workshop will be held in English only. 

Costs: Attendance is free of charge but requires registration. Food and drink are provided during the conference and all participants are invited to a conference dinner on the first day. Travel to Trento and accommodation expenses will be the responsibility of the participants.

Venue: Autonomous Province of Trento, Depero Room, Dante Square 15, Trento, Italy.

Please register via this online platform as soon as possible and not later than 22 May 2025.

Registrations will be processed in the order in which they are received. Registrations will close once the maximum limit is reached, even if that is before the official closing date. The organisers reserve the right to limit participation.