The regional competitive index as a tool to improve regional forecasting: theory and evidence from two western European regions

Regional competitiveness has been extensively studied over the last ten years. These studies have shown how regions do not have the same capacity to meet the challenges continuously posed by the new competitive scenario. However the studies have not been able to fully explain the phenomenon nor provide a yardstick for the measurement thereof that is relevant, accessible and that can be applied to other situations. This paper has a threefold aim: to review the doctrinal contributions made regarding the concept of competitive regional advantage, analyse the issues concerning its measurement and the limits to thinking in terms of regional competitiveness and in the light of these results establishing possible strategies for improving regional performance. Results from a review of the literature were then validated through one hundred and thirty three interviews with three types of regional stakeholder (academics, territorial competitiveness index compilers and regional public authorities) in order to construct a complex framework of drivers and indicators which, when properly weighted, permit the creation of an RCI (Regional Competitiveness Index). Then, we applied our model and the RCI to two attractive regions Piedmont and Provence Alpes Côte d’Azur (PACA) for comparative purposes, using the Western Europe Region Database.