The forthcoming EU Chips Act 2.0 seeks to balance two ambitious goals: fostering European technological sovereignty while strengthening regional long-term competitiveness through targeted investments. This challenge has become increasingly important as innovation policy is expected not only to enhance European competitiveness, but also to address widening regional inequalities and strengthen social cohesion amid growing public distrust in democratic institutions.

Experience from the US CHIPS Act in the Rust Belt suggests that achieving this dual objective is more difficult than policymakers often assume. Large-scale innovation investments alone do not automatically generate public trust or convince communities that the envisioned transformations will be beneficial for them.

To serve as a credible strategy for regional renewal, innovation policy must be tailored to local concerns and identities, complemented by visible social investment, and developed through meaningful engagement with local communities rather than promises of future prosperity or appeals to national technological priorities. 

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