Entrepreneurial Discovery Process Research Articles

Redefining the entrepreneurial discovery process for smarter specialization in Europe

ABSTRACT The objective of this paper is to propose a revision of the Entrepreneurial Discovery Process (EDP) as a key driver in the Smart Specialization Strategy (S3) policy framework. To this end, the paper makes three major contributions. First, drawing on recent contributions that redefine entrepreneurship as a quasi-scientific process based on experimentation, we redefine the role and process of EDP within the S3 policy framework. Second, by referring to the concepts of the adjacent possible and speciation, we revise the scope of the discovery process, overcoming the traditional trade-off between technological relatedness and unrelatedness. Third, we address the implications of these changes in the context of the innovation gap between knowledge-intensive and lagging-behind regions in the EU.

Systematic Literature Review on Smart Specialization

Smart specialisation (SS) has been the new cohesion policy in the European Union during the last two periods. The present study aims to analyse the most relevant existing state-of-the-art literature on smart specialisation through a systematic and bibliometric review. Using the Web of Science bibliographic database, we analysed the content of 207 articles under the TCCM methodology and constructed a network of citations in order to summarize theories, characteristics, context and methods presented in existing studies on the topic. Our results show the theoretical and methodological gaps of the past, such as Entrepreneurial Discovery Process and SS indicators. These remain to the present day. The context analysis showed that the scope of smart specialisation extended beyond the frontiers of the European Union, given how it has been adopted by other countries as well. These results suggest the importance of developing a more robust theoretical, conceptual and methodological framework. Consequently, the guides need to be more accurate and should be continuously updated. Our results are valuable for the EDP actors and have policymaking implications.

Creative Economy and Sustainable Regional Growth: Lessons from the Implementation of Entrepreneurial Discovery Process at the Regional Level

The creative economy sector is tightly associated with sustainable development and Sustainable Economic Goals (SDGs). The creative industries contribute to sustainability in a variety of ways. They are essential in accelerating sustainable consumption and production patterns and promoting regional sustainable development. This paper attempts to stress the role of the creative economy in promoting sustainable regional growth by focusing on smart specialization priority areas in the region of Attica. The latter has been accomplished by presenting the current regional policy model and the entrepreneurial discovery process (EDP) methodology in the region of Attica. This paper concludes that the EDP paves the way for the formulation of policy lessons enhancing the link between the creative economy and sustainable regional growth. In a nutshell, three major conclusions derived from the present paper include the following aspects: (i) the formulation of an integrated smart specialisation strategy requires an ongoing and well-structured process along the policy cycle (structured life-cycle approach); (ii) the deployment of a robust innovation ecosystem requires a comprehensive approach of engaging and mobilising regional actors and identifying their needs and priorities; (iii) the lessons observed through the exploration of the case study lead to concrete findings regarding the critical importance of long-term interactive institutional learning and policy co-design as a precondition for an effective regional ecosystem.

Sustainable development of agriculture based on the smart specialisation approach: cases of the Central and Eastern European countries

Purpose. The purpose of the study is to analyse and systematise the smart priorities of the territories of Central and Eastern Europe with a focus on the sustainable development of the agricultural sector and to identify current trends in the innovative development of agriculture.
 Methodology / approach. The main research method is benchmarking which includes identification, comparative analysis, generalisation and application of best practices in various fields of activity. The authors’ methodology of regional benchmarking has been tried out in the work. The methodology provides implementation of a set of scientific and analytical measures at the following stages: (1) mapping and identification of smart priorities in focal economic activities; (2) analysis of regional priorities according to the European goals of smart specialisation policy including the structure of their selection; (3) studying the content and goals of the regional priorities establishing cross-sectoral links; (4) examination of the exploit of established and emerging clusters in the regional smart specialisation with identification of their localisation and selected priority areas; (5) analysis of interregional cooperation in smart specialisation domains; (6) processing and formalisation of the obtained research results.
 Results. We identified and analysed 44 priorities involving the agricultural sector, which belongs to 12 Central and Eastern European countries. The dominant policy objectives of smart specialisation of these territories are Sustainable Innovation, Public Health & Security and Key Enabling Technologies, which are mainly focused on achieving sustainable agriculture, establishing bioeconomy and providing food security & safety. These smart specialisation domains at the national and sub-national levels clearly contribute to the attainment of the Sustainable Development Goals. Priorities were grouped according to their internal goals and content, which allowed identifying key trends of innovative development of the territories with the involvement of the agricultural sector. It is concluded that the regions combine knowledge and assets through the intensification of cross-sectoral, interregional cooperation and the use of clusters. We determined that cross-sectoral links within smart priorities are mostly formed within existing value chains, but recently, new cross-sectoral and interregional partnerships emerge and actively develop. They are mainly focused on the diffusion of innovative bio- and digital technologies in agro-food systems. We highlighted the key issues that need to be addressed by regional working groups while selecting the smart priorities of the Ukraine’s regions. 
 Originality / scientific novelty. This paper presents the results of the thematic research in a new understudied direction – Smart Specialisation Strategies for Sustainability. Based on the authors’ methodology of regional benchmarking, the smart priorities in the agricultural sector of Central and Eastern European countries have been analysed.
 Practical value / implications. The results of the study can be used by regional working groups of the Entrepreneurial discovery process to draw up possible ways of agricultural development. The obtained results may also be of interest to researchers from different countries involved in the implementation of smart specialisation approach and the improvement of its methodology.

Translating in practice: On the role of translation in entrepreneurial discovery processes in Norway

ABSTRACT The article examines a key component of regional smart specialisation strategy, namely the entrepreneurial discovery process (EDP) and how it unfolds in three regions in Norway. The authors seek to understand the interpretation and operationalisation of the EDP by conducting a constructivist thematic analysis of regional strategy documents and associated material in Rogaland, Vestland, and Nordland. They find that while similarities exist in the use of the EDP, the regions differ markedly across several key dimensions, most notably the interpretation of the EDP and its implementation across the regions. To have a better understanding of these differences in a region’s EDP, they propose the integration of translation theory with more conventional theoretical approaches on understanding regional policy differences. The authors shed light on the diffuse understandings of the EDP in practice across regions, thereby providing richer evidence of how the interpretations can differ considerably even within one country, and they conclude that this indicates the relevance of translation theory for future regional comparative studies of smart specialisation.

The innovative potential of scientific and research units in the process of entrepreneurial discovery — examples from selected eu regions

Abstract The entrepreneurial discovery process (EDP) is an element of the Research and Innovation Strategy for Smart Specialisation (RIS3) concept, which is the basis for activities carried out in European Union (EU) regions in the area of innovation policies. The process requires the creation of an institutional structure (cooperation network) that allows for coordinated and continuous cooperation between representatives of entities that create regional innovation systems. These include: authorities, scientific and research units, entrepreneurs and civil society. The purpose of this article is to present the role of scientific and research units in the cooperation network, as well as the possibility of using their innovation potential when conducting EDP. On the basis of market research in 10 regions, the authors identified practical examples of cooperation carried out in selected seven EU regions (partner regions participating in a project called Beyond EDP).

Identifying entrepreneurial discovery processes with weak and strong technology signals: a text mining approach.

This study aims to propose methods for identifying entrepreneurial discovery processes with weak/strong signals of technological changes and incorporating technology foresight in the design and planning of the Smart Specialization Strategy (S3). For this purpose, we first analyse patent abstracts from 2000 to 2009, obtained from the European Patent Office and use a keyword-based text mining approach to collect weak and strong technology signals; the word2vec algorithm is also employed to group weak signal keywords. We then utilize Correlation Explanation (CorEx) topic modelling to link technology weak/strong signals to invention activities for the period 2010-2018 and use the ANOVA statistical method to examine the relationship between technology weak/strong signals and patent values. The results suggest that patents related to weak rather than strong signals are more likely to be high-impact innovations and to serve as a basis for future technological developments. Furthermore, we use latent Dirichlet allocation (LDA) topic modelling to analyse patent activities related to weak/strong technology signals and compute regional topic weights. Finally, we present implications of the research.

Smart specialization and participatory processes in green path renewal. Analysis of the forest-based bioeconomy in sparsely populated regions in the Nordics

ABSTRACT 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.

Integrating the Sustainable Development Goals into a Region’s Smart Specialisation Strategy through Corporate Responsibility

The United Nations’ 2030 Agenda for Sustainable Development and the accompanying 17 Sustainable Development Goals (SDGs) have been widely adopted in EU policies, such as the European Green Deal, and Member States, highlight the need for responsible and sustainable investments by the business sector. The present paper argues that in the EU framework where development policies are sufficiently decentralised at the level of Regions, the materialization of “shared value” from business towards the achievement of SDGs can be accomplished via close cooperation between regional governance authorities and the business sector itself, in the spirit of SDG 17 (“Strengthen the means of implementation and revitalize the global partnership for sustainable development”). In this framework, EU Regions shall support the identification of regional industries and/or market segments that guarantee innovation potentials and regional comparative advantages. This entrepreneurial discovery process, in the context of Regional Smart Specialisation Strategies, shall be followed by private investments, exploiting the relevant business opportunities and creating “shared value” towards the achievement of SDGs.

Triple, Quadruple and N-Tuple Helices: The RIS3 and EDP of a Higher-Order Policy Model

Abstract In the past decade there have been a series of articles on the status of Triple, Quadruple and N-Tuple Helices. In responding to the most recent of these from Leydesdorff and Lawson Smith (2022), this article examines the respective status of the Triple and Quadruple Helix as the scientific basis of the Research and Innovation Strategies related to Smart Specialisation (RIS3) and as the foundation of the Entrepreneurial Discovery Process (EDP). In conducting this examination, the article draws attention to the strengths of the Triple Helix Model, the communication overlay, fourth selection environment and associated ecology of the meta-stabilisation it posits not as the Quadruple Helix, but N-Tuple helices of a higher-order policy model. That policy model which stands high in terms of the status it commands as a regime governing the transition to a next-order system. To a next-order system whose governing regime commands this heightened status as the model policy for nation-states to adopt in sustaining the economic growth of regions.

The institutional challenges of dynamic regional innovation strategies

ABSTRACT Smart Specialisation Strategies (S3) are widely used to guide place-based innovation policy. However, there is little analysis of the institutional frameworks necessary for implementing multi-actor entrepreneurial discovery processes. This paper explores the evolution of institutions in the Basque Country region over a four-year period. It conceptualizes two levels of institutions: the overall architecture established to pursue an S3; and the micro-processes that emerge to particularize and valorize priorities. The paper highlights lessons relating to the experimentalism of S3, monitoring and evaluation, the engagement of small and medium-sized enterprises and civil society actors, and mechanisms for amplifying the voice of regions.

Identifying entrepreneurial discovery processes with weak and strong technology signals: a text mining approach

This study aims to propose methods for identifying entrepreneurial discovery processes with weak/strong signals of technological changes and incorporating technology foresight in the design and planning of the Smart Specialization Strategy (S3). For this purpose, we first analyse patent abstracts from 2000 to 2009, obtained from the European Patent Office and use a keyword-based text mining approach to collect weak and strong technology signals; the word2vec algorithm is also employed to group weak signal keywords. We then utilize Correlation Explanation (CorEx) topic modelling to link technology weak/strong signals to invention activities for the period 2010-2018 and use the ANOVA statistical method to examine the relationship between technology weak/strong signals and patent values. The results suggest that patents related to weak rather than strong signals are more likely to be high-impact innovations and to serve as a basis for future technological developments. Furthermore, we use latent Dirichlet allocation (LDA) topic modelling to analyse patent activities related to weak/strong technology signals and compute regional topic weights. Finally, we present implications of the research.

Facilitation of Entrepreneurial Discovery Processes by Policymakers: an Actionable Definition of Roles and Challenges

The objective of this paper is to contribute to the academic literature with an actionable framework of the roles of policy makers in entrepreneurial discovery processes (EDP) in the context of smart specialisation strategies (S3). The methodology used to define such roles is action research and, consequently, they are the result of learning and negotiation between policy makers and other territorial stakeholders facilitated by action researchers. The case study is based in the Bilbao Next Lab project (Bilbao, Basque region, Spain) where this methodology was chosen because policy makers wanted to explore EDP through collaborative governance. The key findings have been integrated in a framework named as the six roles of facilitative policymakers in EDPs. Its actionability is visible in the connection of the framework with the dilemmas, difficulties, and problems faced by policy makers when facilitating EDP processes. The framework is presented together with a discussion on the relevance of including tailored capacity development processes for policymakers as part of the EDP. The paper concludes with a final reflection on how the need for a facilitative role of policymakers also requires a transformation of research methodologies by social researchers.

Addressing Public Policy Implementation Challenges in Lagging Regions Through the Analytical Lens of Smart Specialisation

Smart Specialisation Strategy (S3) research has contributed to better understanding of that policy framework’s conceptual underpinnings but some European regions still find it difficult to turn S3 theory into policy implementation. A key element of the implementation challenge concerns the enabling or constraining role of local institutions on regional development strategies and, more specifically, the entrepreneurial discovery process (EDP). Such a challenge appears to be particularly acute (and empirically unexplored) in lagging regions, characterised by weaker knowledge bases and innovation capacities. It is often in less advanced settings where weaker institutions are found. This paper addresses these gaps by investigating S3 implementation in lagging regions focusing on the dynamic interdependence between the regional institutional environment and EDP. It evidences how particular features of the regional institutional environment hinder EDP, as well as how institutional change could enable S3 implementation in two Greek regions. Our results reveal mutual interdependence between inadequate institutions and weak administrative and entrepreneurial capacities, creating adverse pre-conditions for S3 implementation. They also suggest that change requires the replacement of existing features of the institutional environment or creation of new ones, rather than gradual institutional adaptation or transformation.

Implementation of the Integration Component of Regional Smart Specialisation Strategies: Scientific and Methodological Approach

The article discusses the formation issues of the integration component of regional strategies for smart specialisation, including the use of Interregional and cross-border cooperation in strategically important areas. The relevance and potential of activating European partnerships for Ukrainian regions within the framework of strategies for smart specialisation were emphasized. In order to adapt and develop the methodological support developed in the EU, a scientific and methodological approach to assessing potential partnerships in the formation of regional smart specialisation strategies has been justified. It is proposed to perform a set of diagnostic and communication procedures to identify and assess the prospects for interregional cooperation for each project initiative at the participatory stage of the entrepreneurial discovery process. Measures to identify potential partnerships include the following: justification of the feasibility of partnership and integration into existing cluster-network structures; identification of possible partners and study of their potential and interests; assessment of the readiness of regional stakeholders for partnership; formation of partnership proposals for a specific smart priority. This additional stage will allow to determine the possibilities of resource-competent strengthening of regional priorities of smart specialisation by combining knowledge and assets with innovatively active European regions. The proposed author’s scientific and methodological approach to assessing the potential of cluster-network partnership of Ukrainian regions and EU member states is based on the calculation of an integral indicator that takes into account the assessment of innovative cooperation of each region and its cluster-network activity in a specific thematic area of smart specialisation. The structure is shown and the content of calculation procedures for determining the integral indicator of the potential of cluster-network interaction of the region based on information and analytical data of European ratings and platforms is developed. The scientific and methodological approach has been tested on the example of Chemicals thematic partnership. The definition of groups of indicators for assessing innovative cooperation and cluster-network activity of 13 regions of the European Union, which are part of this partnership, has been consistently disclosed. A rating of chemical regions was formed to assess the potential of cluster-network interaction.

One coast, two systems: Regional innovation systems and entrepreneurial discovery in Western Norway

AbstractThis paper introduces an analytical framework for understanding how specialized and diversified regional innovation system (RIS) differ in the way an entrepreneurial discovery process (EDP) is likely to unfold. To analytically explore the proposed framework, we deploy a sequential explanatory design approach, using quantitative data to analyze the regional industry structure of the city regions of Bergen and Stavanger in Western Norway, followed by a qualitative analysis of interviews with key stakeholders in both regions. We find that the city regions face unique challenges that align with an understanding of their respective RIS categorization, providing evidence that the framework proposed serves as a useful guide in understanding the development of an EDP.

Lessons Learnt: Changes in the Methodology of the Entrepreneurial Discovery Process in Defining the Priorities of Hungarian Smart Specialisation Strategies

This study shows how one of the fundamental methods of designing and implementing the Smart Specialisation Strategy (S3), the Entrepreneurial Discovery Process (EDP), was applied in the period of 2014–2020 and how, taking accrued experience into account, it has been adjusted in the new planning cycle in Hungarian practice. Based on Hungarian strategies and other policy documents, international and Hungarian literature, the study shows that although the involvement of relevant actors in strategic planning and prioritising was achieved in both cycles, the nature of the actors’ participation differed fundamentally in the two periods. We found that learning from the experience of planning the S3 for 2014–2020, the design of the 2021–2027 strategy required improving the focus of priorities, validating priorities and creating an institutional system capable of making EDP continuous during the cycle 2021–2027, in line with the European Commission’s expectations. We concluded that a well-functioning EDP methodology is an essential part of the substantive realisation of an S3 that can be dynamically shaped according to the challenges.

Combining technological relatedness and sectoral specialization for improving prioritization in Smart Specialisation

ABSTRACT 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.

Solving the restructuring problems of (former) old industrial regions with smart specialization? Conceptual thoughts and evidence from the Ruhr

(Former) old industrial regions are a specific kind of lagging regions that suffer from long-term restructuring problems and deindustrialization. They are back in the focus of many researchers as well as media observers, because of the rise of populist parties in many of these regions in North America and Europe. Therefore, new policy options are discussed in the literature. In this paper, we critically discuss the effects of smart specialization as the most recent regional policy strategy in Europe on solving the restructuring problems and deindustrialization in (former) old industrial regions and we illustrate our analysis with a view on the Ruhr in Germany. Since smart specialization focuses on existing endogenous potential and entrepreneurial discovery processes from the region, vested interests in (former) old industrial regions might hinder necessary restructuring. Although potentially path transformation might be fostered in some cases, overall, smart specialization is certainly not a quick fix for solving long-term negative effects of restructuring and deindustrialization in (former) old industrial regions.

Fostering sustainable entrepreneurship by business strategies: An explorative approach in the bioeconomy

AbstractThe conceptual framework of bioeconomy advances sustainability by ensuring that environmental, social, and economic goals are met. Although numerous authors perceive bioeconomy as a key sector to achieve sustainable transformation, there is a lack of a comprehensive set of factors determining sustainable entrepreneurship in the bioeconomy sector. This study aims to identify factors influencing business strategies for sustainable entrepreneurship in the bioeconomy sector. This study uses the triangulation of research methods, including the entrepreneurial discovery process, as well as multiple‐criteria methods of the pairwise comparison and the analytic hierarchy process. This study serves as grounds for the identification of priority factors influencing the choice of relevant business strategies in the bioeconomy. Within the framework of the research, five core factors are specified: economic‐and‐financial, market, technological, ecological, organization‐and‐human resources, and legal. The findings reveal that the most significant factors are economic‐and‐financial and market factors that determine the choice of innovative and offensive strategies by bioeconomy enterprises. These strategies impact entrepreneurial decision‐making processes in the environmental and social areas, and they contribute to the development of more sustainable and entrepreneurial ecosystems. To advance the research on sustainable entrepreneurship, different theoretical perspectives are combined, including economics, strategic management, and innovation perspective.