A substantial technology gap still divides the advanced and less-developed regions of the European Union, in both the public and private sectors, in the sphere of research, technological development and innovation (RTDI) systems. It is necessary, therefore, to help Community regions to develop competitive assets based on innovation6 rather than leave them to base their regional competitive advantage on costs (particularly wage costs), since such an advantage could be swiftly eliminated in an increasingly globalised economy. For this reason, innovative actions should be introduced in the regions in order to try and establish co-operation between the public sector and the bodies responsible for RTDI and businesses, with a view to creating efficient regional innovation systems. The aim is to encourage links not only between enterprises, but also with the universities, advisory services, financial markets and other technology partners. In other words, it is a matter of establishing an environment and a regional institutional framework which will promote, by reinforcing human capital, the creation, dissemination and integration of knowledge within the productive fabric as a principal source of innovation and competitive advantage.
There is a greater risk than ever that the particularly swift development of information and communication technologies will create new gaps between the regions of the European Union in the field of access to the information society. In these circumstances, the less-favoured regions need to be able to rise to the challenges generated by the growth of these technologies by taking full advantage of the new opportunities offered by the information society where the productive sector, public services or inhabitants' individual needs are concerned. Consequently, through its powerful networking effects ("net-economy", on-line digital and mobile services), the information society can contribute to the geographical and economic opening-up of these regions. This will enable them to reduce their handicaps (particularly peripheral location) and develop their assets by reinforcing the competitiveness of businesses, especially SMEs. Information society applications which assist citizens and administrations are also a factor which can promote equal opportunities for their inhabitants.
The regions should rely to a greater extent on their assets for the purpose of developing a sustainable and competitive economy and improving the living and working environment of their inhabitants. These assets and opportunities may be based on the region's heritage and cultural diversity, or else on specific skills, a strategic location, an exceptionally high-quality environment, educational and cultural infrastructure, language skills, musical traditions, handicrafts, regional products or cuisine, etc. As job mobility tends to increase, thanks to the technological progress that is reducing the constraint of physical location, individuals will be freer to choose where to work and live. Less densely populated, rural or outlying regions, including border areas, can try to turn this development to their advantage and attract inhabitants by offering them a different way of life from the towns and cities and other densely populated areas. Conversely, the latter can attempt to improve their quality of life through better use of transport and energy systems, a reduction in noise and atmospheric pollution, the organization of collective services, etc. Innovative actions should explore these avenues.