Why does the effectiveness of European innovation policies fail to enhance business performance in Galicia (Spain)?

This study examines the extent to which European funding aimed at fostering innovation in a peripheral and convergence objective region such as Galicia (Spain) has leaked into more economically developed areas. We test the hypothesis of lack of resources efficiency in this region. With this aim, we assess the impact of these funds on key business innovation indicators in Galicia, including revenue, gross value added, employment, profitability and investment in research and development. The analysis is centred on the ERDF-Innterconecta programme of the Technology Fund, which mobilized substantial financial resources. Our findings confirm the lack of effect among Galicians across the business innovation indicators examined. These results underscore the need for improved planning and management of future innovation policies to ensure a more suitable, equitable and effective distribution of resources.