The policy brief discusses how a challenge-oriented approach to place-based innovation policies The policy brief discusses how a challenge-oriented approach to place-based innovation policies can bring added value to EU Cohesion Policy. In so doing, it looks at the potential implications of can bring added value to EU Cohesion Policy. In so doing, it looks at the potential implications of a challenge-led logic on three dimensions: the rationale of Cohesion Policy, its operational aspects a challenge-led logic on three dimensions: the rationale of Cohesion Policy, its operational aspects as well as its challenges in terms of governance and coordination. Three areas are explored: how a as well as its challenges in terms of governance and coordination. Three areas are explored: how a challenge-driven logic can offer a deliberative approach to formulate challenge-oriented terrichallenge-driven logic can offer a deliberative approach to formulate challenge-oriented territorial development priorities in the context of Cohesion Policy; how the challenge-oriented torial development priorities in the context of Cohesion Policy; how the challenge-oriented approach can provide an optimal coordination framework to consolidate and streamline public approach can provide an optimal coordination framework to consolidate and streamline public investments from across policy areas and governance levels; how it can reinforce stakeholders investments from across policy areas and governance levels; how it can reinforce stakeholders engagement in Cohesion Policy around localised challenges and help build challenge-oriented engagement in Cohesion Policy around localised challenges and help build challenge-oriented partnerships. partnerships.