We draw on trade theory to empirically explore the effects of value chain integration on producer price dynamics. Using the EU as an example of an integrated area, we construct measures of backward and forward linkages with intra‐ and extra‐EU trading partners at the country‐sector level. We find that especially upstream integration and EU accession dampen inflation. The results for downstream integration indicate a price‐increasing relationship. We propose novel EU integration indicators and offer insights to both theory and applied research. We also add to the policy debate on the price effects of (dis‐)integration of EU countries.

This non-technical article promotes the use of project-level data for monitoring and the evaluation of EU research and innovation policy. First, a new dataset of R&I-related projects co-funded by the ERDF during the multi-annual financial framework 2014-2020 is introduced. Second, this data is used, together with Horizon 2020 project information, in order to explore interlinkages between the funding schemes in terms of thematic priorities as well as beneficiaries. On average, 15 percent of ERDF projects could be identified as being carried out by a beneficiary that also receives funds from the Horizon 2020 programme.