STRUCTURAL CONSTRAINTS AMID REGIONAL ASPIRATIONS: ASSESSING CATALONIA'S COMPETITIVENESS PATHWAY WITHIN THE EUROPEAN UNION

Abstract

This study investigates the evolution of Catalonia’s regional competitiveness within Spain and the European Union by applying the EU’s Regional Competitiveness Index (RCI) 2.0 framework. Through a combination of longitudinal benchmarking, peer region analysis, and k-means clustering, we assess how Catalonia’s competitiveness has shifted from 2016 to 2022 across eleven sub-indices grouped under the Basic, Efficiency, and Innovation pillars. The findings reveal that Catalonia, despite its strengths in infrastructure, technological readiness, and innovation capacity, remains structurally constrained by weak institutional quality, labour market inefficiencies, and underperformance in education. While it advanced to a stronger competitiveness cluster by 2022, its relative position declined compared to core Western European regions, and it was surpassed by the País Vasco region in the national competitiveness ranking. Peer group dynamics confirm a shift from the association with innovation-led Western European regions to a more heterogeneous set, including emerging Eastern regions, highlighting Catalonia’s relative stagnation. These insights challenge assumptions of uniform competitiveness often cited in regional autonomy debates and emphasize the need for systemic reforms in governance and human capital development. The paper also demonstrates the analytical value of RCI 2.0 in uncovering the structural foundations of regional performance and offers policy-relevant implications for territorial cohesion and sustainable development.