What is NUTS Classification

Regional development policies based on local potential triggers a shift in the economic structure of territories. Exogenous and endogenous factors determine potential of regional development and it is necessary to use different indicators and methods to its evaluation. For the chapter purpose, it is required to define metropolitan and peripheral functions as well as urban areas in the form of geographic models, depicting their spatial distribution in the European Union (EU). Nowadays, regions are increasingly becoming the drivers of the economy. All regions possess development opportunities – however, use these options enough, and hence the competitiveness of regions must be efficient enough. The chapter focuses on dividing the EU NUTS 2 regions based on geographic models of the European economy into efficient and inefficient ones and identifying an optimal benchmark for inefficient regions as a strategy for enhancing their economic structure to measure regional efforts and progress.