SMART-СПЕЦІАЛІЗАЦІЯ ЯК ІНСТРУМЕНТ АКТИВІЗАЦІЇ РОЗВИТКУ РЕГІОНІВ УКРАЇНИ

The article deals with the possibilities of integrating the concept of smart specialization into regional development policies in the Russian Federation. Strategies of smart specialization are being actively and successfully developed in the regions of the European Union. Smart specialization implies setting priorities for economic development based on local strengths and resources. The strategy assumes the ‘entrepreneurial discovery process’, during which promising market niches are identified along with technologies and innovations that a region can develop in order to gain competitive advantages in those niches. The article analyzes the required institutional framework for smart specialization implementation. Propositions are made on how Russian institutions in the fields of innovations and regional development can adapt to further the smart specialization agenda. The article concludes with the analysis of the draft strategy for social and economic development of the Irkutsk oblast from the point of view of its conformity with the criteria of smart specialization. Specific guidelines are outlined for the improvement of the strategy in this respect.

The issue of shaping a new EU innovation policy based on smart specialization is new to the developed countries and to Ukraine in particular. Currently, regional state administrations are tasked with developing regional development strategies based on European approaches to smart specialization. One of the main principles of smart specialization is the entrepreneurial discovery process — EDP, to which this article is dedicated. The views of smart specialization theorists on the emergence of this phenomenon, peculiarities of its formation and development in interaction and interdependence on the factors of technological and knowledge influence on the economic growth of countries and regions, establish of their competitive advantages, make political decisions to support the development of priority technologies and sectors, attracting public and private investment in research and development were analyzed. The theoretical foundations of the concept of entrepreneurial discovery are considered, which have a decisive influence on the choice of the structure of regional smart strategies, as well as on the formation of priorities of innovation development, focusing on the existing strengths of the regional economy and innovations and using the results of private and public research and development carried out on this territory. The European Commission program documents have been studied, in which conceptual approaches to the entrepreneurial discovery process have been concretized and developed in the context of developing and implementing smart specialization strategies at national / regional levels. The Smart Specialization Research and Innovation Strategy Guide emphasizes the need for step-by-step development of a regional smart specialization strategy. The study found that the EDP principle more or less influence on the formation of each of the six stages of a smart strategy. Examples of such influence are given.

The implementation of a research and innovation strategy anchored in the principles of ‘smart specialisation’ can be an important catalyst for regional development. Even in regions that are less technology intensive and with a gap in terms of socio-economic development, the potential of selectivity with the introduction of ‘entrepreneurial discovery’ mechanisms is essential for designing successful policies and actions. The ‘entrepreneurial discovery’—the finding of a new sector or activity emerging from existing localized capacities and market demands—is not an original idea, in practice it has always happened in any structural change process and most of the time in a spontaneous way. The novelty of ‘smart specialisation’ strategies is the formal and explicit character that the ‘entrepreneurial discovery process’ assumes. This chapter discusses different approaches to the process of ‘entrepreneurial discovery’, paying special attention to participatory models.

The aim of the article is to develop systematic institutional recommendations for integrating the process of entrepreneurial discovery into Ukraine’s State regional policy and to create an organizational and economic model that will ensure the strategic sovereignty of national innovation policy, restore participation in the entrepreneurial discovery process, and achieve operational efficiency in regional smart specialization in the context of European integration commitments and post-war recovery needs. The article determines the necessity of institutionalizing smart specialization as a national priority within innovation and investment policy, which requires its integration into the budgetary process. Smart specialization (S3) should serve as a key selection criterion for all public investment projects within the framework of the Unified Project Portfolio, providing strategic investment filtering at the budget planning stage (CHOIR approach). It has been demonstrated that under external shocks, the security component must be defined as a mandatory strategic criterion for smart specialization priorities. This ensures the resilience of investments and their alignment with national security and recovery requirements. A critical need has been identified to integrate institutionally fragmented areas of smart specialization management (strategy, entrepreneurial discovery process, implementation, monitoring, and evaluation). To address this, it is proposed to establish a single S3 coordination committee as a multi-stakeholder platform at the regional level, which will provide a unified policy cycle and a strong link between strategy and implementation. To restore the inclusive nature of the entrepreneurial discovery process, the role of regional EDP thematic councils needs to be strengthened. They should be granted active powers not only in setting priorities but also in co-developing funding instruments and strategically monitoring S3 projects, which contributes to the efficient engagement of the «triple spiral» potential. The need to simplify and digitalize administrative requirements (for example, through unified digital platforms) has been recognized to enhance institutional capacity. In addition, to strengthen human resource capacity, it is necessary to train public servants, with a focus on project management, the entrepreneurial discovery process methodology, and the analysis of innovation systems.

The European Union plays a pivotal role in supporting all regions and Member States to enhance their potential for innovation, competitiveness and sustainable development and growth. A primary instrument in the promotion of regional development is the implementation of the smart specialisation (SS) concept, which entails the identification of regional strengths and the cultivation of competitive advantages through the utilisation of the prevailing economic and innovation infrastructure. The analysis of the EU countries' experience has demonstrated that the SS concept fosters the establishment of an industrial and innovative foundation for the regional economy, delineates the distinctive characteristics of economic, scientific and technological specialisation among regions, and delineates the trajectories of their productivity, competitiveness and economic growth. In light of the crisis situation in the social and economic development of Ukraine's regions, the development and implementation of SS strategies at the regional level has the potential to enhance regional competitiveness, generate employment opportunities, and improve social conditions. Furthermore, the implementation of these strategies can also generate additional financial opportunities to support regional development. The subject of the present study is a set of theoretical and methodological aspects of innovative regional development through the implementation of the SS concept. The authors have set the task of formulating the main segments of the SS concept as a priority component of increasing the competitiveness of regions, improving their socio-economic climate and proposing a modernization of the conceptual category "SS of socio-economic development of regions" for a more substantive definition of the directions of innovative regional policy. The methodological basis of the study is based on the general principles of scientific knowledge: the principle of objectivity, which requires the identification of all the main obstacles to the implementation of the SS strategy in the regions; the principle of historicism, which provides for the coverage of the historical origins of the SS concept; the principle of a systematic approach, which allows to clarify the essence of the term "SS of the region"; the principle of logical generalisation, which contributes to the substantiation of the basic requirements for the successful implementation of the SS concept of the region and the definition of the key principles of SS implementation in the region. The study of such an innovative tool for regional development as SS has enabled the identification of several key segments of its essential content, which are taken into account by scientists and substantiated by the existing modern principles of its implementation. The authors analyse the individual stages of the emergence of the SS concept from the perspective of its historical formation, relevance and interconnection with the sustainable socio-economic growth of the region. This study pays particular attention to the main conceptual provisions of the SS concept. These include research and innovation strategies of SS, the choice of the region as the main object of specialisation, the use of scientific, technological and economic specialisation, and the attribution of key assets and the possible potential for diversification of the international position of the region as a local node in global chains to the main criteria for choosing subject areas. Simultaneously, the content of the primary barriers to the implementation of the SS strategy in the regions is delineated. These barriers are responsible for the slowdown in the promotion of innovation, industrial and socio-economic policy, and their further development. The principles of SS implementation in the region are outlined, with the establishment of the existing connection of their adaptation. The existence of a relationship between the SS concept and regional development, industrial and innovation policy is substantiated. Results. The SS concept of the regions is a priority tool for their competitiveness, social and economic development, taking into account production, innovation and economic potential. Achieving the strategic socio-economic intentions of regional development, ensuring the preservation of their specialisation and existing potential is impossible without the implementation of an effective SS Regions Concept. For Ukraine, the SS Regions concept represents the EU's assistance in promoting the development of Ukrainian regions and helping to overcome the prolonged economic downturn. It has been demonstrated that the benefits of this approach for Ukraine include the accession of regions to the EU network of regions, attracting investors to the region, increasing the number of joint projects with the EU, supporting regions in the process of economic transformation and aligning professional potential with market requirements. The authors of the study posit that the successful implementation of the concept of SS regions, the achievement of an appropriate level of competitiveness, and the improvement of socio-economic development can only be achieved through effective co-operation and synergy between local authorities, business, academia, and civil society.

This paper suggests that the core principles contained in the Smart Specialisation concept represent a set of challenges, tensions and opportunities for the position of universities in regional innovation strategies. These potential issues are discussed focusing on three particular elements of Smart Specialisation: the collective ‘entrepreneurial process of discovery’; the increased focus on specific areas of R&D and innovation specialisation within a regional economy that can generate distinctive competitive advantage; and the greater interest in trans-regional links and the relationship between territories in the European Union with different specialisations in the development and application of new technologies. The paper also identifies possible future barriers to the engagement of universities with regional Smart Specialisation Strategies.

The article is devoted to the scientific and methodological aspects of regional benchmarking in the entrepreneurial discovery process as part of the development of regional smart specialization strategy. We present the results of using the author’s methodology on the example of one of the sectoral priority areas of smart specialization in European regions. The relevance of the implementation of regional benchmarking and the place of its incorporation into the process of smart prioritization, taking into account the existing methodological support for the development of regional smart specialization strategies have been substantiated. The methodology for regional benchmarking proposed by the authors includes the following main stages: (1) mapping and defining smart priorities for focal econo­mic activities; (2) analysis of regional priorities according to European policy objectives of smart specialization and study of their structure taking into account the innovative activity of the regions; (3) analysis of the content and goals of regional smart projects with the identification of intersectoral links; (4) analysis of attracting clusters to regional smart specialization and study their localization and selected priority areas; (5) analysis of interregional cooperation in selected thematic area of smart specialization; (6) processing and formalization of the obtained research results. The results of approbation of the proposed methodology are presented on the example of involving the chemical sector in the formation of smart projects. Using data from European internet platforms, we examined 90 smart priorities selected in 69 European regions. It was determined that the dominant goals of the smart specialization policy based on chemical production are Key enabling technologies, Sustainable innovation and Digital transformation. We found that these goals were chosen mainly by the innovation-active regions, while regions with a low level of innovation development, in addition to Sustainable innovation and Key enabling technologies, also focus on projects in the field of health and safety. It is concluded that the combination of knowledge and assets in the smart specialization process in Europe is the result of increased intersectoral and interregional cooperation, including using cluster technologies. Сross-sectoral linkages in smart projects are formed mostly within the existing value chains. At the same time, recently, new intersectoral partnerships, which are focused mainly on digitalization, diffusion of innovative biotechnologies and technologies for sustainable development, have emerged and are actively developing.

Focus on smart specialization is a key element of regional development strategizing in Ukraine, which, for example, is reflected in the State Regional Development Strategy for 2021-2027. But a comparative analysis of individual indicators of the economic development of the EU, the USA and China shows that smart specialization itself is not a competitive advantage on a global scale. At the same time, the researchers note that there is a gap between the theory and the practice of strategizing on the basis of smart specialization. Although theoretical issues related to smart specialization are not overlooked by researchers, the direct understanding of smart specialization processes from the standpoint of specific schools of economic theory is extremely limited. Therefore, the goal of the study is to reduce the essence of the concept of smart specialization from the standpoint of leading schools of economic theory. For the analysis, a classification was chosen, according to which 9 schools of economic theory are distinguished: (1) Classical, (2) Neoclassical, (3) Marxist, (4) Developmentalist, (5) Austrian, (6) Schumpeterian, (7) Keynesian, (8) Institutionalist, (9) Behaviouralist. Of the nine considered leading schools of economic theory, almost half of the schools (Classical, Developmentalist, Schumpeterian, and Institutionalist) significantly influenced the formation of the essence of smart specialization. Smart specialization has been moderately influenced by Neoclassical, Marxist and Keynesian schools. Austrian and Behaviouralist schools are characterized by a slight influence on smart specialization. Thus, smart specialization to a significant or moderate degree corresponds to individual provisions of 7 out of the 9 leading schools of economic theory considered in this study. Smart specialization synthesizes the positions of different schools of economic theory. Two alternatives follow from this: either the concept of smart specialization is a “constructive” tool for combining the “best” practices of various schools of economic theory, or it is an eclectic combination of ideas that are fundamentally incompatible. An unambiguous solution to this dilemma is possible on a practical level in the long term. Keywords smart specialization, schools of economic theory, definition, reduction.

This paper examines two atypical sparsely populated regions and their experience implementing a strategy of forest-based bioeconomy through smart specialization. Smart specialization is increasingly promoted as an opportunity for green transformations. Indeed, its recent evolution from S3 to S4 is an effort to address environmental sustainability challenges alongside regional development. In this paper, we argue that one of smart specialization’s early stages, the entrepreneurial discovery process (EDP), can help establish a basis for the green transformation of traditional industries located in sparsely populated areas. The EDP is a participatory process that gathers diverse actors interested in developing a common economic sector, mostly through innovation. We explain how multi-actor participation facilitate understanding innovation as a problem-solving process requiring the input of actors outside (but including) the firms. As the cases show, this can unlock the potential of place-based multi-actor interventions to identify and mobilize pre-existing conditions and resources that, when combined with a common agenda, can influence green path renewal. In our cases, those pre-existing conditions are a culture of collaboration, knowledge, infrastructure and access to natural resources. The common agenda is to transform the regional economy into a forest-based bioeconomy.

Relatedness is a popular concept for regional branching within Smart Specialisation. However, this proximity-network approach misses its regional perspective, making difficult its operationalization in regional policies. This paper advances the regional perspective of relatedness for improving prioritization in Smart Specialisation by combining the concepts of technological relatedness and sectoral specialization. Using a four-stage methodology, we reveal potential Smart Specialisation priorities for a set of 16 European regions considering both cognitive links arising through technological relatedness and their regional structures. The proposed methodology reduces the stress of regional stakeholders participating in entrepreneurial discovery processes by providing a narrower set of priorities.

There is a generalized interest in the so-called New Industrial Policies (NIP) and on European Policies based on Smart Specialisation Strategies and more recently their use for Sustainability (S4). However, when Smart Specialisation was first proposed, it was assumed that European regions would have no difficulties in dropping their long-established ‘planning and control’ governance models and adopt a new approach. This paper illustrates the difficulties in translating the concepts of ‘Smart Specialisation’ and ‘Entrepreneurial Discovery Processes (EDP)’ into policy practices and proposes a policy process that may be used to guide policymakers in implementing Smart Specialisation policies

The article analyzes scientific approaches to the interpretation of the concept «smart-specialization». It investigates the specifics of smart specialization in the European Union (EU). National/regional innovation strategies for smart specialization RIS3 must be based on four «Cs» smart specialization principles – Tough Choices and Critical mass; Competitive Advantage; Connectivity and Clusters; Collaborative Leadership. The article emphasizes «the entrepreneurial discovery process» which includes entrepreneurial actors, researchers and the remainder of society as innovation users in addition to public administration. The reasonability of defining the term «smart specialization» in the Law of Ukraine «On Innovation Activity» as innovative approach aimed at realization of unique combination by state planning documents of competitive advantages of corresponding area and innovation development activity. To realize planning strategy for regional development in Ukraine on smart specialization principles, this article proposes to amend: the Law of Ukraine «On the Priority Directions of Innovation Activity in Ukraine» (Article 4), which should establish the Strategic Priority Directions of Innovation Activity in 2021-2030 for national, sectoral and regional stages as a basis for state-funded priorities under state planning documents on smart specialization; the Law of Ukraine «On principles of State Regional Policy» with specification of state regional policy priorities on state, regional and local stages; European smart specialization practices; determining exclusively by this Law of the algorithm of design, coherence, approval and implementing of State Strategy for Regional Development, regional and local strategies for development on smart specialization principles; compiling of a publicly available national multistage info-analytical platform for electronic verification of state planning documents.

Greece wine production has shown swinging trends: in 2013 it grew by 17,9% reaching 3.7 Million Hectoliters (USDA), but it 2014 it decreased by 15% (Greek Wine Federation), whilst grape prices went up. Greece has a huge potential, but it is still a small producer in Europe.The Greek wine industry got through several phases: before the 80s the product was quite “poor”, but with the entrance in the market of some educated winemakers who have introduced a new business philosophy and approach to wine, production has changed (GaiaWines.gr). The population of firms consist of a few larger producers, and most of the companies are relatively small. Although the quality has been improved, most of the production is addressed to the domestic market, since only few producers have established export networks (Vlachvei et al., 2012).Thus, the economic crisis that affected Greece has created difficulties also for domestic sales. Background research has outlines some of the limits of the Greek wine industry: according to Vlachvei et al. (2012),the new competitive challenges require owner and managers to achieve a better understanding of operational and marketing process that can contribute to the development of their brand in order to develop an integrated marketing communication approach.The Greek wine sector is extremely fragmented with a high predominance of small size firms; as size increases, the degree of professional organization grows, as well as the relative presence of foreign markets (Papalexiou, 2009). Thus, it has been recognized that Greek wine export is disorganized (Baiocchi, 2011; Papalexiou, 2009). The limits imposed by UE to plantings have affected Greece growth strategy: Greece is still a small producer and although it shows similarities with the south of Italy, it is impossible to think to follow the “Italian Style” (Baiocchi, 2011). Thus the urgency of undertaking a propter model for the development of the industry is seen as a priority for the Greek wine system.Wineries have seen in related businesses an effective tool for improving the competitiveness of the wine industry (Papalexiou, 2009); a lot has been done for achieving an integration between wine tourism and the wine business. Background research describes the experiments undertaken around wine routes, conceived as a useful tool for improving the wine sector (Hall & Mitchell, 2000) and for the development of rural areas (Karafolas, 2007).In 2014 the Joint Research Center (JRC) of the European Commission has undertaken a Smart Specialization pilot project that involves rural areas in Northern Greece, in order to foster local economic development by adopting an entrepreneurial discovery approach (EDP). JRC can be considered as a source of technology generation and a service that provides expert advice to the institutions of the European Union and more specifically to the European Commission and the European Parliament (Moncada-Paterno`-Castello, 2003). It can be guessed how JRC outcomes could impact citizens’ lives.From September 2014 for 15 months JRC has been involved in the European Parliament Preparatory Action; the aims of this project are: to facilitate the refinement and implementation of the RIS3 strategy in a region heavily hit by the crisis; and to serve as a model for other convergence regions in Greece and Europe (from JRC website). The project has seen the collaboration of JRC – IPTS (Institute for Prospective Technological Studies) with DG Regio and the Managing Authority of Eastern Macedonia and Thrace. The wine sector has been selected, together with few others for the preparatory action. The approach that has been adopted was the Entrepreneurial Discovery Process (EDP), in order to allocate resources under the guide of entrepreneurial actors, from the public and private sector.EDP is “a process in which the entrepreneurial actors are discovering and producing information about new business and innovation activities and the government is collecting, assessing and transforming this knowledge into policy action” (http://s3platform.jrc.ec.europa.eu/s3-governance).EDP plays a leading role in the Smart Specialization Strategy (S3): EDP suggests that the allocation of resources is the result of a process undertaken by entrepreneurial actors. It emerges how innovative this process is, if compared to past industrial policies. EDP contributed to minimise failures of market innovation. The Smart Specialisation perspective let entrepreneurs discovering the right domains of future specializations (Foray, 2012). A newer approach to regional competitiveness (Ketels, 2013) has been followed by European Commission, that, in order to promote an efficient and effective public funding policy in regional economic development (Mempel-Śniezyk, 2013), has actively supported Smart Specialisation Initiatives. On the other side, S3 has a prior role in the EU Regional and Cohesion Policy 2014-2020 (Martinez-Lopez & Palazuelos-Martinez, 2014).This paper examines the role that EDP and S3 have had in the definition of a strategy for the development of the local wine industry. The paper aims to answering to the following research questions: What are the elements seen as priorities from entrepreneurs for developing the local wine industry in Greece? Is there an overlapping between the findings emerging from JRC workshops and those that have been pointed out by relevant opinion makers and experts in the Greek wine industry? What about the effectiveness of EDP in wine?The paper is structured as follows: In the first part a description of the Greek wine industry will be carried out; in a second section authors will point out JRC’s EDP approach; thirdly an analysis of data collected from JRC sessions and from interviews with international experts in Greece will be performed.9 experts that took part to the workshop will be interviewed. Data will be collected through telephone interviews and web based survey; once collected data will be analyzed through a text analysis.A literature review on EDP and theoretical issues that have inspired the organization of JRC sessions will be presented in order to support Research Questions. The papers ends up with a discussion and conclusions in order to provide inputs for professionals, and policy makers.

Smart specialization strategies are actively implemented as part of a large-scale action plan for the development of the EU economy. Ukraine also comprehensively implements approaches to smart specialization in the development and implementation of regional development strategies. At the same time, IT clusters are developing both in the EU and in Ukraine. But the vast majority of studies do not pay attention to the specific characteristics of IT clusters in the context of the formation and implementation of smart specialization strategies. Therefore, the purpose of the study is to determine the role of IT clusters as a tool for ensuring smart specialization strategies in Ukraine. The concepts of smart specialization and regional clusters are similar in their emphasis on (1) productivity and innovation as key factors of competitiveness; (2) regional integration of local advantages. The differences between the concepts lie in the final result. For smart specialization, the search and dissemination of knowledge for the emergence of new opportunities on the market are important. At the same time, the increase in productivity of cluster members and the development of related industries are important for regional clusters. Regional clusters can be considered as an element of the smart specialization strategy. We can talk about smart clustering in the process of smart specialization. A comparative analysis of the functioning of foreign and domestic IT clusters showed that the action of foreign clusters is aimed at cooperation with local/regional authorities, educational institutions and business. The clusters presented in the work provide support to enterprises (including industrial ones) in the transition to sustainable digital technologies. The majority of domestic IT clusters are formed in regions with limited industrial potential and are involved in educational and social projects, projects on the interaction of IT clusters with the local authorities of the regions. Based on the nature and modern role of IT clusters, they can be considered as a resource and accelerator for all areas of smart specialization. Ukraine has two main ways of using the potential of domestic IT clusters to ensure smart specialization. The first way involves the maximally accelerated integration into the S3 Platform of all regional initiatives regarding smart specialization. The second way involves the creation of the national S3 Platform (for Ukraine) with the aim of consolidating all initiatives within the framework of regional smart specialization strategies, their coordination at the national level with further integration into the pan-European S3 platform. There is also a third intermediate path, which involves the simultaneous integration of individual initiatives into the European S3 platform, and the creation of its own nationwide S3 Platform (for Ukraine).

In modern conditions of dynamically changing environment, questions about new regional ways of innovative development are being updated. Researches confirm that the innovative development of regions is becoming a significant factor in increasing the competitiveness of the region and the formation of high innovative activity. The purpose of the article is to identify the essence of modern approaches to the management of regional innovative development, that are appropriate in the context of transformational changes and to analyze them. To achieve this goal next following tasks have to be done: to study main methods of managing the regional innovative development; to analyze legal and legislative framework; to analyze statistical indicators of innovative development of the region; to identify regions-leaders and regions-outsiders in Ukraine; to study the concept and essence of Smart Specialization Strategies and the entrepreneurial discovery process in the conditions of the Ukrainian regions’ development. The article discusses the competitiveness and efficiency of innovations in a regional context. These are two interrelated economic categories, reflected in their synergistic effect in various areas of the economic and social life of the regions. Their assessment can be carried out at different levels – regional, national and international levels. Regional competitiveness and efficiency of innovation is the result of comprehensive stakeholder actions at these levels. The article also identifies the main obstacles to the management of regional innovation development and analyzes the regulatory and legal framework for the development of innovations at the regional level. The article also carried out a multifactorial comparative analysis based on statistical data of development indicators to assess the development of regions. Regions-leaders and region-outsiders are defined. The article considers the main effective instruments of innovation policy and the most effective ways of its implementation at the regional level. One of the tool is the Smart Specialization Strategy, which aims to grow economically through a strategy based on localization and stakeholder mobilization at the regional level. The paper also studied the entrepreneurial discovery process, that is a «conceptual pillar» of smart specialization.