Investments through the 2014–2020 European structural funds pursue goals of smart, inclusive and sustainable growth, while many towns and cities in Europe are shrinking rather than growing. Policy makers and practitioners therefore face challenges in ensuring that places with very limited growth potential will not fall further behind. While scholars argue that cities in long-term decline would benefit from enhancing their capacity to develop collaborative initiatives that draw on local resources and assets, in practice local decision makers seem to struggle to engage their communities in the fight against the causes and consequences of decline. This paper advances the argument that the concept of co-production is well suited to explore and explain how collaborative actions unlock new strategic choices that are based on capabilities and resources over which local actors have control. A case study from a small manufacturing town in Germany is used to illustrate how co-production at different levels can lead to tangible, long-term improvements in a context of ongoing shrinkage.

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The ‘ChangeUp’ and ‘FutureBuilders initiatives have provided substantial funding to support and facilitate ‘capacity building’ in voluntary and community organisations and so enable them to contribute to the achievement of public and social policy goals. This paper builds on findings from a study of an early ‘capacity-building’ programme delivered between 1998 and 2005. We explore the challenges of implementing such initiatives for voluntary sector intermediary bodies involved in delivering them and for the voluntary and community organisations intended as the main beneficiaries. We conclude with a discussion about the implications for policy implementation.

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