Issue Ending the split between regional production and capital-region innovation through full-function hubs

Summary

The report identifies the split between production in the regions and innovation in the capital region as the root cause of regional gaps. Policies centred on relocating public institutions left an imbalance of functions and periodic industrial crises. The proposed direction is full-function industrial hubs outside the capital that combine production, headquarters, R&D and services, with regional growth engines in strategic industries such as semiconductors, AI, ocean and hydrogen. Strategies include incentives for relocating headquarters and R&D, attracting large-company R&D campuses, smart and green upgrades of industrial complexes, crisis response for regional industries and regional strategic industry belts. The expected effect is to restore the non-capital share of GRDP to 50 percent or more within five years, though the report acknowledges that relocating headquarters and R&D is highly difficult.