Skip to main content Skip to navigation
Home News & Stories Green competitiveness: Territorial innovation through Interreg
A designer’s workspace with color threads, fabric swatches, handwritten notes, and a fashion magazine featuring a model in a plaid suit with braided blond hair.
News 03 June 2025

Green competitiveness: Territorial innovation through Interreg

In today’s Europe, competitiveness isn’t just about growth, it’s about how we grow. Increasingly, regions are showing that economic development and environmental sustainability can go hand in hand. The transition to greener economies is not a threat to prosperity, but a powerful driver of it. Through Interreg cooperation, this shift is becoming a reality across Europe’s diverse territories.
Share Article Found this article helpful or interesting? Spread the word by sharing it on your social media or email.
Author
Rosa Escamilla
Interact

Driving regional innovation

From industrial hubs to remote rural areas, Interreg projects are helping regions unlock new business models, adopt cleaner technologies, and build innovation ecosystems that are both competitive and sustainable. 

 

Boosting innovation in industrial regions

One good example is the CI-HUB project (Interreg Danube), which focuses on less developed industrial regions, areas that often struggle to attract investment or access cutting-edge innovation. Rather than waiting for change to come from outside, CI-HUB is helping these regions build their own capacity to innovate. Through open innovation hubs, local actors -from companies to universities and public authorities- collaborate on solutions for circular manufacturing and green technology adoption.  

Interreg Danube (2).jpg

CI-HUB Project, Interreg Danube

Empowering SMEs with circular tools

Support for small and medium-sized businesses is also a major pillar of this competitiveness agenda. In the cross-border area between Italy and Austria, the Inno.Circle project (Interreg Italy–Austria) is helping companies redesign their operations based on circular economy principles. It’s provided coaching, peer exchange and open-source tools tailored to business needs. These are the practical steps that help translate abstract strategies into measurable impact at the local level. 

Collaborative innovation in coastal economies

Meanwhile, in France and Italy, the Open Circular project (Interreg Italia–Francia Marittimo) is taking a collaborative approach to innovation. Through living labs and shared experimentation spaces, it supports businesses in developing new sustainable models. By involving multiple stakeholders -chambers of commerce, researchers, SMEs- the project creates an ecosystem where competitiveness grows from cooperation.

In the textile sector, where the need for change is urgent, the STAND Up! initiative (Interreg NEXT MED) has already supported hundreds of young entrepreneurs across the Mediterranean to build circular businesses. This is not only about reducing environmental impact, but also about creating jobs, boosting local economies, and driving innovation in a region rich in design and manufacturing traditions.  

Digital passports for sustainable textiles

Digitalisation also plays a key role. In Denmark, Sweden and Norway, the DIC (Data, Information and Circularity) project (Interreg Öresund–Kattegat–Skagerrak) is testing how digital product passports can improve traceability and circularity in the textile sector. For companies, it’s a chance to increase transparency and meet emerging regulatory requirements, while gaining a competitive edge in a market that’s increasingly demanding sustainability. 

Circular farming for local food systems

And when it comes to food systems, circularity is starting to show its value there too. The TransFarm project (Interreg Central Baltic) brings aquaponics, an innovative farming method where fish and vegetables are cultivated together, to urban and peri-urban areas in countries like Finland and Estonia. These systems use less water, less land and create local food chains that are resilient and low-impact. It’s a model that supports both environmental goals and regional competitiveness. 

Greening industrial materials

Finally, in the field of raw materials and industrial production, the X-Lives project (Interreg Deutschland–Nederland) is exploring how recyclable and renewable materials can be better integrated into local value chains. With over 20 development pilots, it brings together material scientists, SMEs and regional authorities to create circular alternatives in sectors like polymers and fibre-based composites, building a competitive edge through sustainability. 

Interreg Deutschland-Nederland (1).jpg

X-Lives Project, Interreg Deutschland-Nederland

Circularity as a greening strategy

These projects may differ in scope, geography and focus, but they all share a key insight: being green is not a cost, but a strategy for long-term resilience and success. They show that circularity and innovation are not abstract goals, but engines for regional development, and that Interreg programmes provide the space and support for these ideas to flourish. 

As the EU Green Week highlights the importance of being Competitive, it’s clear that Europe’s regions are not waiting on sidelines. Through Interreg, they are already shaping a future where economic strength and environmental responsibility go hand in hand.