On May 1st 2004, 10 Central and Eastern European (CEE) countries joined the EU and became fully eligible for communitarian financial support. While the conditions for eligibility are the same, at regional level CEE territories are characterized by very different socioeconomic settings. In particular, different regions are differently endowed with what has been labelled “territorial capital’, so that the endowment of public and private, material and immaterial assets significantly varies across regions, including infrastructure, private capital, human and social capital. This set of territorial conditions, enabling economic development to take place, is here assumed to impact the outcome of cohesion policies as well. This paper is hence aimed at assessing the role of specific territorial conditions on the efficient implementation of cohesion policies in CEE NUTS3 regions. The analysis points out the mechanisms through which the endowment of specific territorial assets affects the outcome of Cohesion policies. It appears that for a large number of territorial capital assets, increasing returns are present and regions more endowed with specific types of territorial capital are more able to gain from policy investment in related fields.