Lift-off to reverse the trend: Stalowa Wola’s space-based strategy for attracting talent

If you ever find yourself deep in the forests surrounding Stalowa Wola and hear what sounds like an explosion, don’t be alarmed. It is likely a test firing from Huta Stalowa Wola (HSW), the city’s historic defence manufacturer and industrial backbone. Founded in the 1930s, Stalowa Wola — literally meaning “Steel Will” — was built with a clear purpose: to produce steel and heavy machinery in support of national development.

Today, however, this purpose-built city — one of the youngest cities in Poland — is facing a new challenge: demographic contraction and the emigration of young people. Many leave for university or employment opportunities in larger cities and never come back. With industrial smokestacks no longer driving growth, the city is redefining its strategy.

Rather than turning away from its industrial heritage, Stalowa Wola is transforming it. Through Space4Talents, a project funded by the European Urban Initiative, the city is embracing the opportunities of the space economy to retain, empower, and attract new young people. By fusing its industrial DNA with advanced digital technologies, STEAM (Science, Technology, Engineering, Art and Mathematics) education, and international partnerships, Stalowa Wola is writing a new chapter — one that begins with steel but now aims for the stars.

Located in Poland’s Podkarpackie Voivodeship, just 100 km from the Ukrainian border, Stalowa Wola is anything but peripheral. Its location at the crossroads of European debates on security, strategic autonomy and industrial resilience is pivotal.

The city was born from one of the most ambitious state-led planning efforts of the interwar period: the Central Industrial District (COP). Launched in 1937 by Deputy Prime Minister Eugeniusz Kwiatkowski, the COP aimed to reduce the disparities between the industrialised west of Poland and the agricultural, underdeveloped east. Stalowa Wola was built from scratch as a flagship industrial city, complete with steelworks and machinery production for defence and construction purposes. This infrastructure was so vital that the German army spared it from bombing during World War II [1].

In the post-war decades, Huta Stalowa Wola (HSW) grew to become one of the major industrial complexes in Eastern Europe, employing over 20,000 people by the 1980s and exporting military and construction equipment. However, the transition to a market economy after 1989 brought significant upheaval in the form of privatisation, job losses and the need for structural economic transformation [2].

Stalowa Wola responded by diversifying its industry, a process supported by the creation of the Tarnobrzeg Special Economic Zone in the 1990s. A regional innovation ecosystem anchored by Aviation Valley, located in the nearby city of Rzeszów, was established. Although the city is not a member of this cluster, it could still represent a potential catchment area.

Today, HSW employs over 2,000 people and produces military equipment. The city has also attracted foreign investment, including from the Korean SKC Group, which is now operating in the electromobility sector. A local faculty of Rzeszów University of Technology is laying the foundation for a knowledge-based economy [3].

Despite these positive steps, demographic contraction remains one of Stalowa Wola’s most pressing challenges. Between 2012 and 2021, over 54% of Polish municipalities experienced population loss [4]. In Stalowa Wola, the average annual decrease was 1.46%. More concerning is the pattern of this phenomenon: while the urban core lost 13% of its residents, the suburbs increased by only 5.2%, which is not enough to offset the loss [5].

Yet there are signs of optimism. In June 2025, the Economist identified Stalowa Wola as one of Europe’s “industrial comeback cities”[6], reflecting a broader recognition that defence and dual-use technologies will play a strategic role in Europe’s economic future.

It is precisely this renewed focus on strategic autonomy that gives Stalowa Wola a fresh sense of purpose. As Mayor Lucjusz Nadbereżny stated:

“Stalowa Wola is based on technology, and technology is based on Stalowa Wola. That same ‘Steel Will’ still drives us to fight, this time to create opportunities that will encourage young people to stay in this city”.

In this spirit, the city’s political leadership is now focusing on empowering young people through STEAM education and space science, recognising them as the most effective forms of defence and development.

Space4Talents reflects a clear political vision: that STEAM education, digital skills, and space-related applications are essential to empower youth and to build a future-proof urban economy.

The decision to focus on space is not accidental. The space economy is knowledge-intensive and strategically critical for European technological autonomy. Thanks to Earth Observation and satellite data applications, it can offer spillovers into sectors such as agriculture, automotive, logistics, and climate resilience.

In the case of Stalowa Wola, the space industry also leverages the engineering know-how of this industrial city. However, it is also important to note that parts of the sector, particularly in the downstream domain, do not require substantial infrastructure, rendering them accessible even in smaller, less well-equipped post-industrial cities.

Poland is also emerging as one of Europe’s most dynamic space nations. The Podkarpackie Voivodeship already has a robust aerospace sector, with space being one of the key areas identified in its regional innovation strategy [7]. These factors put Stalowa Wola in a good position to realise the potential of a space-based value chain.

The project is built around three complementary pillars, designed to operate in parallel and maximize systemic impact:

1. SpaceLab

Designed as a multifunctional innovation hub, SpaceLab will comprise remote workspaces, a start-up incubator and testing and prototyping areas. It will also act as a bridge between research, training and industrial development. The laboratories will be spread across the different floors of the City Development Agency (StARR) building and will be properly repurposed and equipped as scientific laboratories, co-working spaces and data analytics facilities. Activities such as hackathons, conferences and workshops, as well as more informal networking events, will also be held to encourage innovation, networking and mentoring among SpaceLab users. Participants from the Space Academy will have the opportunity to test ideas, develop business plans, build prototypes and collaborate remotely with national and international partners. In this way, SpaceLab will serve as a critical interface between talent development and real-world innovation.

2. Space Academy

Coordinated by StARR, in partnership with Rzeszów University of Technology, Kozminski University and the INNSPACE Association, the Space Academy is conceived as a flexible, modular education platform. It will deliver short, practical, professional courses in space-related disciplines. The target audience is diverse and ranges from secondary school to university students and professionals seeking to transition or upskill from other industries, companies and organisations (including government institutions) that could be potential users and stakeholders. The Academy aims to raise awareness of the value of space-based technologies and provide training for potential users. In addition to technical training, the Academy will emphasise soft skills, including strategic problem-solving, business development and project management, which are increasingly relevant in the European labour market yet often in short supply. Indeed, recent industrial reports, such as the of EARSC, (European Association of Remote Sensing Companies), state that there is a shortage of skilled people, and that transversal skills, including project management, are particularly difficult to find [8]. This can hinder the growth of the sector and create a mismatch.

3. Governance and Penta-helix collaboration

The third pillar focuses on establishing a multi-level, participatory governance model, drawing from the penta-helix framework. This approach actively engages local government, academia, industry, NGOs and youth—creating a dynamic and resilient ecosystem of shared responsibility. This ensures the project’s long-term sustainability, adaptability and inclusiveness, and enables it to be tailored to a wide range of stakeholders.

Beyond the education and innovation layers, Stalowa Wola is investing in hard infrastructure. The city’s Strategic Investment Park, covering 1,000 hectares, has already attracted over EUR 250 million in public investment. It is now home to some international firms. The park might offer a testbed for introducing space-based applications in traditional sectors. The municipality is also exploring the development of a data centre powered by low-carbon technologies, which would provide local capacity for Earth observation data, AI (Artificial Intelligence) applications and smart urban services.

While the ambition is clear, implementation could face some challenges. These include the need to improve enabling infrastructure, such as housing for students and researchers, hospitality services and an international conference venue, as well as ensuring high-speed digital infrastructure. There is also growing competition across Europe in the rapidly expanding space economy. As is often the case with very innovative projects, some local-level resistance may also arise, requiring awareness-building and sustained engagement.

Despite these challenges, Stalowa Wola has solid foundations to build on: a high quality of life, well-maintained public and green spaces, a compact, forested urban environment with over 70% tree cover, and—above all—political leadership with a clear strategic vision.

Due to its innovative characteristics, the Space4Talents project has the potential to serve as a model, particularly for mid-sized, post-industrial cities. Although Space4Talents is deeply rooted in Stalowa Wola's identity, its gaze is firmly directed outward towards the sky and beyond.

Special thanks to the Mayor of Stalowa Wola for sharing his vision, and to the entire Space4Talents project management team for their valuable contributions, particularly during the study visit. This exchange greatly enriched the understanding of the city’s transformation and the ambition behind the Space4Talents initiative.

References

• 1 Defence24. Huta Stalowa Wola: Eight decades for the Polish security. https://defence24.com/armed-forces/land/huta-stalowa-wola-eight-decades-for-the-polish-security-report
• 2 Spangshus http://www.spangshus.dk/poland/stalowawola
• 3 Ministry of Economic Development and Technology, Republic of Poland. Polish economy: The story of a major transformation. https://www.trade.gov.pl/en/news/polish-economy-the-story-of-a-major-transformation/
• 4 Wichowska, A. (2023). Shrinking cities in Poland: Identification of the phenomenon and its socioeconomic implications. Ekonomia i Prawo. Economics and Law, 22(4), 825–839
• 5 Baran, E., & Tomaszewski, T. Apparent and actual depopulation of medium-sized cities of the transborder region of Podkarpackie Voivodship. Transborder Economics, 3(1), 43–55. ISSN 2451-3229. https://www.ur.edu.pl/files/ur/import/private/22/Nauka/Transborder-Economics/Volume-3-Number-1-2018/002_EWA-BARAN_s_43_56pusta.pdf
• 6 the Economist. The cities winning from war. https://www.economist.com/europe/2025/06/10/the-cities-winning-from-war
• 7 Interreg Europe. Podkarpackie Region: Background information. https://projects2014-2020.interregeurope.eu/fileadmin/user_upload/tx_tevprojects/library/p2l2-podkarpackie-regional-profile.pdf
• 8 EARSC Industry Survey 2024 https://www.canva.com/design/DAGW0f8Giu8/4rl_q3OEq_q_wab3pM16rw/view?embed