Evolution of policy for restructuring economies of old industrial regions: from determinism to anti-crisis flexibility

Abstract

This article analyses the evolution of policy for restructuring old industrial regions based on the European experience and understanding of the building factors of modern EU industrial policy. It outlines the stages of this evolution and their characteristics, associating them with the search for reserves for growth in old industrial regions facing changes in development factors. The drivers that change economic development factors (namely, globalisation trends, declining economic returns on innovations, widening scope of challenges that require faster reactions, and new technological capacity to implement green technologies in industry) are identified as triggers that change the approaches, mechanisms, and methods of structural renovation in these regions, necessitating a correction to industrial policy. The study finds that industrial policy renovation is ob‑ jectively necessary to ensure effectiveness and that it occurs continuously due to permanent endogenous changes. The fast adaptation of industrial sectors is needed due to an increase in the number of challenges and acceleration of endogenous changes ensured by the anti‑crisis flexibility of the policy, which forms the basis of regional systems’ adaptivity to crisis conditions. The author highlights decarbonisation and the just transition framework for a post‑carbon society as the determinative trends of industrial development. Recommendations are suggested for the anti‑crisis correction of Ukrainian coal sector reform and revision of behaviour strategies of coal industries in old industrial regions facing the 2022 energy crisis.