Territorial Economic Data viewer: An introduction to the industrial module

Kostarakos, Ilias; Marques Santos, Anabela Working Paper Territorial Economic Data viewer: An introduction to the industrial module JRC Working Papers on Territorial Modelling and Analysis, No. 02/2025 Provided in Cooperation with: Joint Research Centre (JRC), European Commission Suggested Citation: Kostarakos, Ilias; Marques Santos, Anabela (2025) : Territorial Economic Data viewer: An introduction to the industrial module, JRC Working Papers on Territorial Modelling and Analysis, No. 02/2025, European Commission, Joint Research Centre (JRC), Seville This Version is available at: https://hdl.handle.net/10419/322070 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. 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This publication is a working paper by the Joint Research Centre (JRC), the European Commission’s science and knowledge service. It aims to provide evidence-based scientific support to the European policymaking process. The contents of this publication do not necessarily reflect the position or opinion of the European Commission. Neither the European Commission nor any person acting on behalf of the Commission is responsible for the use that might be made of this publication. For information on the methodology and quality underlying the data used in this publication for which the source is neither Eurostat nor other Commission services, users should contact the referenced source. The designations employed and the presentation of material on the maps do not imply the expression of any opinion whatsoever on the part of the European Union concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. The JRC Working Papers on Territorial Modelling and Analysis are published under the supervision of Simone Salotti, Andrea Conte, and Anabela M. Santos of JRC Seville, European Commission. This series mainly addresses the economic analysis related to the regional and territorial policies carried out in the European Union. The Working Papers of the series are mainly targeted to policy analysts and to the academic community and are to be considered as early-stage scientific papers containing relevant policy implications. They are meant to communicate to a broad audience preliminary research findings and to generate a debate and attract feedback for further improvements. Contact information Name: Anabela M. Santos Address: Edificio Expo, C/Inca Garcilaso 3, 41092 Sevilla (Spain) Email: [email protected] Tel.: +34 95 448 71 61 EU Science Hub https://joint-research-centre.ec.europa.eu JRC139461 Seville: European Commission, 2025 © European Union, 2025 The reuse policy of the European Commission documents is implemented by the Commission Decision 2011/833/EU of 12 December 2011 on the reuse of Commission documents (OJ L 330, 14.12.2011, p. 39). Unless otherwise noted, the reuse of this document is authorised under the Creative Commons Attribution 4.0 International (CC BY 4.0) licence (https://creativecommons.org/licenses/by/4.0/). This means that reuse is allowed provided appropriate credit is given and any changes are indicated. How to cite this report: Kostarakos, I.; Marques Santos, A., Territorial Economic Data viewer: An Introduction to the Industrial module, European Commission, Seville, 2025, JRC139461. 1 Contents Abstract ...................................................................................................................................................................................................... 2 Acknowledgements .............................................................................................................................................................................. 3 Executive summary .............................................................................................................................................................................. 4 1. Introduction ....................................................................................................................................................................................... 5 2. Overview of the dashboards.................................................................................................................................................... 6 3. Data sources ..................................................................................................................................................................................... 7 4. Methodological approach .......................................................................................................................................................... 9 5. A closer look into the dashboards ..................................................................................................................................... 11 5.1. Sectorial dashboard ........................................................................................................................................................ 11 5.2. Ecosystems dashboard.................................................................................................................................................. 14 6. Conclusion ....................................................................................................................................................................................... 18 References ............................................................................................................................................................................................. 19 List of figures ....................................................................................................................................................................................... 20 List of tables ......................................................................................................................................................................................... 21 Annexes ................................................................................................................................................................................................... 22 Annex 1. Industrial Ecosystems .......................................................................................................................................... 22 Annex 2. List of NACE sectors of economic activity ................................................................................................ 25 2 Abstract This paper introduces the new module of the European Commission’s Territorial Economic Data viewer (TEDv) namely, the Industrial Module. The aim is to present the data sources and the methodological approach employed to generate the various dashboards included in this new module. Its usefulness is exhibited via an extensive analysis of the current states of the economic sectors and industrial ecosystems identified as the most prominent ones. 3 Acknowledgements The authors are grateful to European Commission’s Directorate-General for Competition (unit H1) and European Commission’s Directorate-General for Regional and Urban Policy (unit B2) for the data provided about State aid and 2021-2027 cohesion policy funds allocations. Special thanks go to Esperanza Moreno Cruz from the European Commission’s Joint Research Centre (unit T6) for the web design of the industrial module, and the support of Niels Meyer (unit B7). We are also grateful to Elena Kostadinova from European Commission’s Directorate-General for Regional and Urban Policy (unit G1) and Maria Batalla Masana from Directorate General for Internal Market, Industry, Entrepreneurship and SMEs (unit D2) for their valuable comments and suggestions. Authors Ilias KOSTARAKOS [email protected] Anabela MARQUES SANTOS anabela.marques-[email protected] 4 Executive summary This paper introduces the “Industrial Module” of the European Commission’s Territorial Economic Data viewer (TEDv) - a tool designed to support policymaking by offering an integrated and interactive visualization of key economic, sectoral, and territorial data. In the context of the EU’s dual transition toward a greener and more digital economy, the “Industrial Module” aims to bridge existing data gaps and enhance the ability of policymakers to assess the evolving structure of regional economies across Europe. The “Industrial Module” builds on the concept of Industrial Ecosystems, as introduced in the 2020 Communication “A New Industrial Strategy for Europe”. These ecosystems capture complex interdependencies between sectors that are critical for understanding value chains and regional specializations. The module consolidates a diverse range of indicators - from macroeconomic variables such as gross value added and employment, to institutional quality metrics and EU funding data from Horizon 2020 and cohesion policy. A key innovation lies in the construction of a new dataset covering 60 economic sectors at the NUTS2-level, significantly enhancing the granularity and relevance of territorial economic information. This dataset is made accessible through a series of interactive dashboards that allow users to explore and compare regional and sectoral dynamics across Member States and industrial ecosystems. By providing timely, comparable, and user-friendly insights into the economic performance of regions and sectors, the “Industrial Module” equips policymakers with the tools needed for evidencebased decision-making. It supports a more nuanced understanding of regional resilience and industrial transition and contributes to more targeted and effective policy responses in support of the EU’s long-term strategic goals. 5 1. Introduction The European economy is currently at a crossroads. Having largely recovered from a series of large shocks (such as the Covid-19 pandemic-induced crisis, the ongoing war in Ukraine, etc.), the EU is facing an ongoing process of structural change aimed at transforming the European economy into a more efficient, environmentally sustainable economy that will take full advantage of digitalization. For this ongoing – green and digital - transition to be successful, policymakers need to be able to assess the state of the economy based on accurate statistical information. Assessing the state of the regional economies in the EU is a cumbersome process, partly due to the lack of a single repository that brings together all the relevant information and presents them in an intuitive, user-friendly and easily accessible way. Of particular importance is access to data that can reveal the interdependencies and cross-country/cross-regional correlations that have emerged across combinations of sectors of economic activity. These economic structures, referred to by the European Commission as the industrial ecosystems, are an important unit of analysis as they allow the systematic analysis of emerging pan-European value chains. In particular, the concept of industrial ecosystems in the context of EU policy was introduced European Commission in the 2020 communication on “A New Industrial Strategy for Europe”. It refers to aggregate sectors of economic activity constructed as a combination of pre-existing sectors (based on the NACE classification). The ecosystems are designed in such a way that they capture the interdependencies, interlinkages and overall correlations that emerge with the incorporation into value chains (for further details on the construction of the ecosystems and the list of the fourteen ecosystems designed by the European Commission see Appendix A). This paper presents a recent attempt to collect, integrate and visualize a set of indicators that can be used to assess regional economic performance along a number of dimensions, ranging from standard macroeconomic indicators like output and employment to the amounts received by regions in the context of the Horizon 2020 program and indices of regional government quality. In particular, this report describes the newest update of the European Commission’s Territorial Economic Data viewer (TEDv), introduced in Marques Santos et al. (2023), the Industrial module. More specifically, it documents the data visualized in a series of interactive dashboards designed to enhance the ability of policymakers to assess the relative position of EU Member States and NUTS2 regions in a timely manner. These dashboards will be regularly updated based on Eurostat’s planned updates of the regional data series and the publication of the relevant European Commission reports, taking into account the time needed to process and develop the indicators. The rest of the report is organized as follows: section 2 provides an overview of the information available in the dashboards, while section 3 presents the data sources and the methodological approach. Section 4 gives a closer look at the available dashboards, together with examples that illustrate the usability of the interactive maps and section 5 draws some concluding remarks. Lastly, a series of appendices provide some more in-depth analysis of the main developments in the most important ecosystems (in terms of output and employment). 6 2. Overview of the dashboards This section focuses on describing the data collection process for territorial statistics, covering a wide range of policy-relevant topics that would allow the user to gain insights into the state of the economy of the EU Member States and regions. Broadly, the collected data can be organized across the following dimensions:  Economic dimension: this dimension includes data on output produced - Gross Value Added (GVA) and Gross Domestic Product (GDP) - and the rate of employment;  Policy dimension: here the data include the classification of the region according to cohesion policy criteria, the programmed amounts of cohesion policy for the ongoing programming period (2021-2027), Horizon 2020 amounts and the regional state aid intensities;  Institutional dimension: this includes the regional Quality of Governance (QoG) index, the Regional and National Innovation Scoreboard Index. The countryand regional-level statistics collected are organized in two main dashboards, depending on the type of aggregation:  The Sectoral-Industrial dashboard, which displays the information on a wide range of variables covering all of the above-mentioned dimensions;  The Ecosystems dashboard, which provides a snapshot of the relative importance of the 14 industrial ecosystems in terms of GVA and employment across the EU Member States and regions. 13 Figure 3. Example of TEDv visualisation: Economic and additional information for the Spanish region “Comunidad de Madrid” Source: TEDv (extracted on 05/12/2024). Then, in Figure 4, we observe the shares of the top-5 sectors of economic performance in Madrid. As is evident from the pie chart, in 2019, the main sectors of economic activity with a share of regional GVA higher than 10% are Public administration, Wholesale and retail trade and Real estate activities. Overall, this feature of the Industrial module of TEDv provides a concise review of the main indicators characterized the current state of the regional economy, coupled with information regarding the funding stemming from some of the EU’s flagship initiatives. Figure 4. Example of TEDv visualisation: Top 5 most important sectors for regional employment in the Spanish region “Comunidad de Madrid” Source: TEDv (extracted on 05/12/2024). We next turn our attention to the country-level and focus on employment, by selecting the appropriate indicator and keeping the same sector as the unit of analysis. As can be gleaned from Figure 5, the countries in which the Wholesale and retail sectors plays a prominent role are 14 Bulgaria, Cyprus, Denmark, Netherlands and Spain. On the contrary, the lowest shares appear to be concentrated in the core and northern periphery of the EU and, in particular, in Belgium, Finland, Germany and Sweden. Overall, we observe that even though the country-level option provides a good first approximation into the relative importance of the particular sector, this analysis should be combined with the more granular, NUTS2-level analysis. The more granular dataset provides an in-depth depiction of the degree of heterogeneity in terms of the sector’s performance and of the spatial patterns that emerge across the EU. Figure 5. Example of TEDv visualisation: EU regions with “Wholesale and retail trade; repair of motor vehicles and motorcycles” in the top 5 most important sectors for national employment Source: TEDv (extracted on 05/12/2024). 5.2. Ecosystems dashboard The Ecosystems dashboards presents visualizes data regarding GVA and employment for the 14 Ecosystems across all EU Member States and NUTS2 regions. As in the case of the sectoral dashboard, the data are expressed as shares of the country’s total GVA or level of employment as a means of facilitating comparisons. The user is presented with three filters: firstly, he can choose whether to visualize countryor NUTS2-level data, and then whether the variable of interest is GVA or employment shares. Finally, the user can choose each of the 14 Ecosystems available in order to inspect the geographical patterns that emerge. 15 In the following Figure 6, we present a visualization for the country-level distribution of GVA shares for the Agrifood ecosystem. As is evident from the Figure, a significant degree of heterogeneity emerges across the Member States. In particular, the largest contribution of the Agrifood ecosystem in terms of GVA produced is located in Greece, Ireland, Latvia, Lithuania and Romania. Figure 6. Example of TEDv visualisation: EU regions dispersion of GVA shares within the “Agrifood” ecosystem Source: TEDv (extracted on 05/12/2024). On the contrary, countries in the northern periphery – Austria, Germany, Netherlands and Sweden - emerge as the ones exhibiting the smallest contribution. We now turn to a visualization of the regional-level dispersion of employment shares for the Mobility ecosystem, which is depicted in Figure 7. We observe that some interesting patterns emerge coupled with a large degree of heterogeneity on terms of the regional composition of the ecosystem. In particular, the top-performers in terms of employment are regions located in Central and Eastern European economies, namely in Bulgaria, Czech Republic, Hungary, Poland and Romania. 16 Figure 7. Example of TEDv visualisation: EU regions dispersion of employment shares within the “Mobility” ecosystem Source: TEDv (extracted on 05/12/2024). It is interesting to highlight that the lowest contributions (the ones belonging to the bottom 25%) are mainly found in Belgium, Greece and France, indicating that the north-south distinction that emerged in the analysis up to now does not hold in this case. As a means of further showcasing the flexibility of the new module and the visualizations that can be produced using the data available in this new module of the TEDv, we use an example the case of the Aerospace and Defence ecosystem. Specifically, given that the 2021 Single Marker Report provides the exact definition of each of the ecosystems, we can exploit this information in order to produce a tentative split of the Aerospace and Defence ecosystem into its two main components. In particular, the Aerospace and Defence ecosystem is produced as a weighted average of the following sectors of economic activity (corresponding NACE codes are in parentheses): Manufacture of fabricated metal products, except machinery and equipment (C25), Manufacture of computer, electronic and optical products (C26), Manufacture of electrical equipment (C27), Manufacture of other transport equipment (C30), Repair and installation of machinery and equipment (C33), Air transport (H51), Warehousing and support activities for transportation (H52), Telecommunications (J61) and Security and investigation activities (N80). Of those sectors, the one that appears to be related purely to some sort of defence activity is sector N80. 17 Of course, this split comes with the caveat that this is an indicative calculation, meant to provide some additional insights into the dependencies that emerge across the relevant sectors. In this specific case, it is highly likely that the estimates constitute the lower bound of the Defence component; nonetheless, they provide some rather interesting insights into the distribution of this economic activity. As can be seen in the following Figure 8, some interesting spatial patterns emerge. In particular, we observe that the Defence ecosystem is more prominent in the Eastern part of the Union, along with some regions in the southern periphery. On the contrary, in the North-west the Defence ecosystem does not seem to play a relatively important role. Figure 8. Share of GVA produced by the defence ecosystem, estimated contribution to regional output, 2019 Source: Own elaboration based on data generated using Eurostat and Orbis. 18 6. Conclusion In the present paper we provide a detailed description of the data and the methodological approach employed into developing the newest module of the Territorial and Economic Data viewer, the Industrial module. Specifically, this module provides detailed information across a number of dimensions, ranging from (macro)economic statistics to indices of institutional quality and information regarding the funding that the EU regions are expected to receive from the cohesion policy and Horizon 2020 programs. This information set is available both across sectors of economic activity and across the fourteen industrial ecosystems. The sectoral information contains the main methodological contribution of this paper, as a new dataset for the NUTS2 regions of the EU is introduced. In particular, combining a number of alternative data sources, a new dataset of GVA and employment for 60 sectors of economic activity was developed, significantly improving upon the availability of sectoral information at the regional level. This new module of the TEDv allows the user to obtain information regarding the structural composition of the Member States economies, both at the country and at the regional level. The visualizations provided allow the user to compare and contrast the relevant information and thus can support a more informed policy design process. 19 References Charron, N., Lapuente, V. and Bauhr, M. (2024). The Geography of Quality of Government in Europe. Subnational variations in the 2024 European Quality of Government Index and Comparisons with Previous Rounds, QoG Working Paper Series 2024:2 European Commission: Directorate-General for Research and Innovation, European Innovation Scoreboard 2024, Publications Office of the European Union, 2024, https://data.europa.eu/doi/10.2777/779689 European Commission: Directorate-General for Research and Innovation, Hollanders, H. and EsSadki, N., Regional Innovation Scoreboard 2023, Publications Office of the European Union, 2023, https://data.europa.eu/doi/10.2777/70412 Marques Santos, A.; Conte, A.; Ojala, T.; Meyer, N.; Kostarakos, I.; Santoleri, P.; and Shevtsova, Y.; de Quinto Notario, A.; Molica, F. and Lalanne, M. (2023). Territorial Economic Data viewer: A data integration and visualization tool. JRC Working Papers on Territorial Modelling and Analysis No. 04/2023, European 20 List of figures Figure 1. Testing the reliability of BvD Orbis regional-sectoral shares to estimate sectoral-regional data: Example Spain, Manufacture of paper and paper products (C17) ............................................................. 10 Figure 2 . Example of TEDv visualisation: EU regions with “Wholesale and retail trade; repair of motor vehicles and motorcycles” in the top 5 most important sectors for regional employment ...... 12 Figure 3. Example of TEDv visualisation: Economic and additional information for the Spanish region “Comunidad de Madrid” .................................................................................................................................................... 13 Figure 4. Example of TEDv visualisation: Top 5 most important sectors for regional employment in the Spanish region “Comunidad de Madrid” ........................................................................................................................ 13 Figure 5. Example of TEDv visualisation: EU regions with “Wholesale and retail trade; repair of motor vehicles and motorcycles” in the top 5 most important sectors for national employment ...... 14 Figure 6. Example of TEDv visualisation: EU regions dispersion of GVA shares within the “Agrifood” ecosystem ............................................................................................................................................................................................... 15 Figure 7. Example of TEDv visualisation: EU regions dispersion of employment shares within the “Mobility” ecosystem ......................................................................................................................................................................... 16 Figure 8. Share of GVA produced by the defence ecosystem, contribution to regional output, 2019 ....................................................................................................................................................................................................................... 17 21 List of tables Table 1. Dimensions included in the dashboard ................................................................................................................. 7 22 Annexes Annex 1. Industrial Ecosystems The concept of industrial ecosystems was introduced by the European Commission in the 2020 communication on “A New Industrial Strategy for Europe”, as a means of assessing changes in economic activity through the lens of the interdependencies and correlations of the various economic sectors. More specifically, the Commission identified 14 Ecosystems, which are generated as a combination of different sectors of economic activity (2-digit NACE sectors) with some sectors being characterized as horizontal; that is, sectors which are assumed to affect all of the ecosystems. As such, each ecosystem is a weighted sum of the relevant economic sectors, with the weights reflecting the relative importance of each sector within the respective ecosystem. The weights are generated using information available from Input-Output statistics. For the purposes of this report, we use the weights included in Annex 4 of the 2021 Single Market report. The list of the ecosystems along with the sectors that comprise them and their share are contained in the following table: Ecosystem NACE code Weight Aerospace & Defence C25 0.01 Aerospace & Defence C26 0.44 Aerospace & Defence C27 0.24 Aerospace & Defence C30 0.68 Aerospace & Defence C33 0.08 Aerospace & Defence H51 0.09 Aerospace & Defence H52 0.18 Aerospace & Defence J61 0.07 Aerospace & Defence N80 1 Agri-food A 1 Agri-food C10 1 Agri-food C11 1 Agri-food C12 1 Construction C31 1 Construction F 1 Construction M71 1 Construction N81 1 Cultural and Creative Industries C18 1 Cultural and Creative Industries C32 0.08 Cultural and Creative Industries G47 0.01 Cultural and Creative Industries J58 1 Cultural and Creative Industries J59 1 Cultural and Creative Industries J60 1 Cultural and Creative Industries J62_63 0.004