Smart Specialization Strategies Research Articles

Relatedness, Complexity and Regional Diversification in the European Union: The Role of Co‐inventor Networks

AbstractWe investigate the role of both internal and external co‐inventor networks in regional diversification. The impact of co‐inventor networks on regional technological diversification is tested for a data set containing 1,495,699 patents in 643 technologies in 290 European regions at the NUTS‐2 level, between 1987 and 2016. Our results show that both internal co‐inventor network connectivity and external co‐inventor network linkages could benefit regional technology entry and prevent regional technology exit. However, too inwardly oriented or outwardly connected co‐inventor networks would hamper patent production. Regarding regional diversification, we find that both internal and external co‐inventor networks could facilitate the entry of related technologies and restrain the exit of complex technologies. This paper contributes to the literature by initiating the integration of the complexity dimension into analysing the role of co‐inventor networks in regional diversification. This research bears significant policy implications for the advancement of Smart Specialization Strategy in the European Union.

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.

Understanding the Role of Smart Specialization Strategies (S3) within a Regional Innovation System: Evidence from Digital Industries in the Yangtze River Delta, China

In response to Boschma’s concern that the implications of relatedness- and unrelatedness-based diversification strategies lack empirical evidence at disaggregated levels and in the context of the Global South, this study generates a unique dataset at the city level and explores how these smart specialization strategies (S3) may explain digital industry innovations within a specific regional innovation system, i.e., the Yangtze River Delta, China. The findings reveal that both relatedness density and knowledge complexity play a positive role in explaining digital industry innovations. However, the relationship between relatedness and knowledge complexity and its interactive effects on innovation performance are less straightforward. In our study, we found that efficient cooperation between relatedness and complexity can only be achieved if the level of government intervention is moderate. Therefore, the discussion of S3 focuses on more than the dichotomous argument between relatedness and unrelatedness. Many socio-economic factors also impact the effectiveness of these theoretical components within different innovation systems, which are largely overlooked by present studies.

Revisiting the CCIs-tourism nexus: insights from Smart Specialisation Strategies

In recent years, increasing attention has been paid to the importance of interrelationships between cultural and creative industries (CCIs) and tourism for cross-industry innovation and sustainable local development. The purpose of this study is to deepen the understanding of the role and relevance of the CCIs-tourism nexus for innovation-driven socio-economic transformation of territories through regional policy design and implementation in Smart Specialisation Strategies (RIS3). To this end, a thematic analysis has been conducted to explore the links between CCIs and tourism in RIS3 prioritization choices and whether and how it has been revisited from the previous programming period (2014–2020) to the current updates of strategies (2021–2027). The findings provide insights into the focus and evolution of this nexus to address the role of CCIs in enabling innovation-led regional development for the triple transition.

Inter-organisational Sustainability Cooperation Among European Regions and the Role of Smart Specialisation

AbstractInnovation represents one of the most crucial levers for regional prosperity and sectoral renewal. Additionally, it is applied to address challenges such as a sustainable transition and the battle against climate change. Since innovation is the result of cooperation between different actors with different backgrounds, the topic is increasingly studied from a systemic perspective. Here, not only internal cooperation but also cross-border connections between regions become important. While smart specialisation, a European policy for innovation and cohesion, highlights the role of interregional cooperation, practical manifestations and research on this aspect have remained limited so far. This article addresses this gap by discussing the relevance of interregional cooperation for knowledge creation and presents empirical evidence on cooperation between organisations in different European regions in the field of environmental sustainability. The underlying dataset was constructed from Horizon 2020 (H2020) research projects with Northern Germany as an exemplary set of regions chosen as the core of a social network analysis (SNA). The findings reveal that involvement in interregional projects is concentrated particularly in urban regions and correlates with GDP and population density. On the other hand, also organisations in regions with different structural characteristics are involved in interregional cooperation, and H2020 managed to introduce new cooperation patterns. Finally, the empirical data do not adequately match the regional smart specialisation strategies (S3) which raises questions on updating smart specialisation as a policy.

Exploring the role of research and innovation institutions in regional digital development: The experience of Lazio Region

Developing a strong and vibrant economic base is one of the European Union priorities for 2019-2024. According to European policymakers, research and innovation activities have a direct impact on the level of prosperity and well-being of European society. EU regional policy is among other issues concentrated on the support of the development of SMEs and strengthening regional research and innovation activities. EU Smart specialisation strategy (S3) prioritizes research and innovation investment as a tool for the development of the European regions. Italy is an industrial country; its manufacturing companies represent the engine of economic growth and development, with their ability to produce wealth and job opportunities. Starting from the structure of the Italian economy characterized by widespread entrepreneurship, creating a favorable environment for businesses therefore responds to a specific public interest. For this reason, industrial policy is back at the core of the government's agenda. Knowing how to take up this challenge, however, not only concerns the government, but mainly entrepreneurs, to whom the new development and digitalization plans are providing agile and flexible tools to grow, innovate and acquire competitiveness. The development of collaborations between research and development institutions and SMEs is one of the measures to achieve these goals. By concentrating on the representative Lazio Region case, this study seeks to understand the contribution of the joint work of these platforms to the regional development and local entrepreneurial competitiveness through an in-depth analysis of strengths, weaknesses, threats and opportunities of the ongoing smart specialization and digital transformation strategies.

Topic-Based Trend Analysis for the Design and Planning of European Smart Specialization Strategy

Topic-Based Trend Analysis for the Design and Planning of European Smart Specialization Strategy

Universities and institutionalization of regional innovation policy in peripheral regions: Insights from the smart specialization in Portugal

Regional innovation policies are currently influenced by a series of territorial innovation models, with the regional innovation system (RIS) approach being one of the prominent examples. The rationale of smart specialization strategies (S3s) is deeply influenced by the RIS concept and highlights the importance of entrepreneurial discovery and shared governance by different types of actors. Among them, universities are seen as crucial for the success of S3 design and implementation. This article, mixing a policy debate perspective with analysis of recent quantitative and qualitative information about the Portuguese case, highlights relevant aspects for understanding the institutionalization of regional innovation and the role universities have in it as crucial knowledge brokers. The results have implications for regional innovation policies and in particular for the challenges that peripheral regions face.

Disparities in innovation capital of cities in Poland

ObjectivesThe aim of the paper is to measure innovation capital of Polish cities and verify whether its dispersion changed.Material and methodsData was retrieved from the Local Data Bank provided by Statistics Poland. The sample consists of 18 Polish cities. The research period covers years 2014-2021. The TOPSIS method was applied to build the innovation capital index of cities and sigma convergence of innovation capital was verified.ResultsThe findings indicate relatively high cross-sectional disparities in the vast majority of the investigated indicators of cities’ innovation capital. The largest disparities were identified for the number of higher education graduates and the new registered enterprises in high-tech services sector. The constructed composite indicator - innovation capital index took the highest average values in the analysed period for Wrocław, Poznań, Kraków, Warszawa, and Lublin, whereas Gorzów Wielkopolski, Zielona Góra, Bydgoszcz, and Białystok achieved the lowest values. The sigma convergence analysis revealed that the differentiation of innovation capital in Polish cities remained at a similar level and there was no convergence in this area.ConclusionsInnovation capital plays a key role in the development of urban economy. Given the complexity of innovation capital, its measurement should comprise a set of indicators reflecting both output and input dimensions. Identification of spatial patterns of innovation capital distribution should enable to adjust smart specialization strategy to territorial characteristics of a given city.

Do Regional Smart Specialization Strategies Affect Innovation in Enterprises?

According to the European Commission, the smart specialization strategy is intended as a response to complex development challenges and a tool for stimulating innovation at the regional level. At the same time, it is known that the conditions in which businesses operate, including institutional framework, socio-economic aspects, infrastructure and forms of business support, do not always meet their needs. The research and analyses carried out in this study were aimed at testing the relationships mainly between the external activities that most create/develop innovation in enterprises, networking within the innovation ecosystem, and barriers inhibiting innovation development. For this purpose, 250 survey interviews were conducted with representatives of innovative enterprises from five regions in Poland. Our research and analyses have shown that regions make considerable efforts to comprehensively define rather complex RIS3 (Research and Innovation Smart Specialization Strategy) policy priorities, while in reality these priorities often do not coincide with the expectations of entrepreneurs.

A triple helix model for the diffusion of Industry 4.0 technologies in firms in the Marche Region.

Firms in the Marche Region, Italy, seem to struggle with understanding the importance of Industry 4.0 technologies, including blockchain technology, and delay the adoption of these innovative technologies. This paper is based on findings of three levels of qualitative analysis: the first one is a literature review; the second uses secondary sources about the diffusion of Industry 4.0 in the Marche Region and the local institutions and policies favouring it, retrieved from institutional websites and web searches; the third uses primary data which has been collected through an explorative survey conducted by sending a questionnaire to local innovative firms between 25th and the 27th of October 2022. The literature review shows that collaboration between triple helix actors can foster innovation in firms. Secondary data about firms in the Marche Region describes an economy made prevalently of micro enterprises not capable of adopting Industry 4.0 technologies, and individuates some institutions located in the region having the role of innovation intermediaries that help firms innovate. Among the secondary sources, the new Smart Specialisation Strategy 2021-2027 of the Marche Region emphasises the role of Industry 4.0 for economic development which requires the involvement of the research and innovation actors present in the region. The survey conducted for this study shows that the firms that adopted Industry 4.0 technologies have strong ties and collaboration with triple helix institutions. Based on the findings, a triple helix model is proposed to foster the diffusion of Industry 4.0 technologies in the Marche Region, where innovation intermediaries are called to manage knowledge flows both among them and between academia, government, and industry, to activate a virtuous cycle of innovation adoption and valorisation.

Unpacking smart specialization strategies: how collective policy-making processes shape the direction of regional strategies

ABSTRACT Regional strategies, such as smart specialization strategies, can set the course for future diversification. Despite its importance, surprisingly little is known about how the underlying policy-making process affects the direction of regional strategies, i.e. the priority areas that regions aim to promote. As a consequence, the underlying reasons why certain regions have difficulties in developing adequate future-oriented strategies remain concealed. The purpose of this article is to provide a framework to unpack the policy-making process of regional strategy development and link it to the policy outcomes. The conceptual elaborations highlight that only by considering the features of this policy-making process, distributed across various actors with heterogenous interests and capabilities, can we explain why regions favour the promotion of certain types of path development over others.

The Regional Innovation System and Smart Specialisation in the “energy region” Lusatia

Lusatia, a rural-peripheral region in Eastern Germany, currently faces structural change due to the planned phase-out of lignite mining. Against the backdrop of the EU Smart Specialisation (S2) strategy, structural change funds need to be invested where it can strengthen Lusatia’s Regional Innovation System (RIS). With Lusatia’s history, energy seems a promising topic S2. However, it is questionable if there is a critical mass of actors and research for energy topics in the region that could enable regional competitiveness. This paper addresses this issue by analysing the current state of Lusatia’s RIS and the potentials for S2. I use empirical data from statistical offices and the “Förderkatalog” as well as data on new research projects and institutes for my analysis. The gathered data suggest that the region’s RIS is rather thin. While the proclaimed image of an “energy region” is not reflected in the data yet, this may change due to the structural change program and the strategic orientation of the region. S2 may be successful if the new institutes and research projects enable the attraction of skilled workers and firms and at the same time manage to increase the absorption capacity of existing firms in the region. Building a critical mass for cooperation and innovation is achievable, at least in the larger cities such as Cottbus. Monitoring and evaluation of the impacts of the invested funds will be crucial.

A multilevel approach to firm interrelationships across European regions

ABSTRACT Policymakers attempt to foster entrepreneurship within European regions yet firm interrelationships across European regions remain understudied. This paper analyses the extent to which past firm births and deaths influence future firm births and deaths across European NUTS 2 regions through the lens of competition, multiplier and Marshall effects. Using a novel multilevel mixed effects regression model, we find evidence for an immediate multiplier effect changing to a competition effect as time passes across European regions and countries. We also identify that significant variations in firm birth and death rates exist across European regions validating the importance of more decentralized regional entrepreneurial policies which has implications for policies like the European Regional Development Fund’s (ERDF) Cohesion Plan and the Smart Specialization Strategy.

A triple helix model for the diffusion of Industry 4.0 technologies in firms in the Marche Region

Background: Firms in the Marche Region, Italy, seem to struggle with understanding the importance of Industry 4.0 technologies, including blockchain technology, and delay the adoption of these innovative technologies. Methods: This paper is based on findings of three levels of qualitative analysis: the first one is a literature review; the second uses secondary sources about the diffusion of Industry 4.0 in the Marche Region and the local institutions and policies favouring it, retrieved from institutional websites and web searches; the third uses primary data which has been collected through an explorative survey conducted by sending a questionnaire to local innovative firms between 25th and the 27th of October 2022. Results: The literature review shows that collaboration between triple helix actors can foster innovation in firms. Secondary data about firms in the Marche Region describes an economy made prevalently of micro enterprises not capable of adopting Industry 4.0 technologies, and individuates some institutions located in the region having the role of innovation intermediaries that help firms innovate. Among the secondary sources, the new Smart Specialisation Strategy 2021-2027 of the Marche Region emphasises the role of Industry 4.0 for economic development which requires the involvement of the research and innovation actors present in the region. The survey conducted for this study shows that the firms that adopted Industry 4.0 technologies have strong ties and collaboration with triple helix institutions. Conclusions: Based on the findings, a triple helix model is proposed to foster the diffusion of Industry 4.0 technologies in the Marche Region, where innovation intermediaries are called to manage knowledge flows both among them and between academia, government, and industry, to activate a virtuous cycle of innovation adoption and valorisation.

Diffusion of innovation, innovation studies, and innovation policies: cross-fertilisation to improve smart specialisation strategies (S3)

The paper reviews the diffusion research approach to the analysis of innovations and its impact on innovation studies. This social approach brought a new understanding of the innovation process by focusing on analysing the factors that influence the spread of innovations instead of focusing on its technical basis. We also review the different approaches to the study of the spread of policies – policy diffusion, policy transfer and policy mobility. We review the reception of diffusion research in innovation studies to recover some insights and to integrate them into current innovation policy debate. We use the innovation policy of Smart Specialisation Strategies (S3) as an example of how this integration could be done. After reviewing the main challenges of S3, we show the importance of improving the implementation phase of innovation policies through different mechanisms. For example, we indicate the need of paying more attention to mechanisms of policy diffusion, such as learning and, specially, socialisation as these could lead to more stable and long-term policy changes.

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.

Practical Implications of Smart Specialization Strategy: Barriers to Implementation, Role of the Public Sector, and Benefits for Entrepreneurs

Smart specialization is one of the major public policies aimed at stimulation of innovations. The aim of this paper is to examine the interactions between implementation of innovation strategy in the form of RIS3, barriers and bottlenecks of innovation diffusion, and development of innovativeness in enterprises on a regional level. The analysis was based on 30 individual in-depth interviews with representatives of institutions implementing the assumptions of smart specialization in the regions, as well as cross-sectional survey questionnaires on a sample of 250 enterprises engaged in innovative activities in Poland sample. The results of this study show that the applied forms of innovation support, implemented within the framework of RIS3, are not adapted to the realities of the operation of enterprises. Improving this situation requires understanding the actual needs of entrepreneurs. It is proposed to increase the level of stakeholder interaction and communication. Improved measures should be tested and evaluated based on their ability to stimulate business innovation.

Directions for improving smart-specialization strategy of the regions of Ukraine from the positions of schumpertianity, institutionalism, and developmentalism

Smart specialization is one of the key modern economic policies implemented in the European Union. Its essence is to ensure innovative development depending on a specific region's existing conditions and features. Smart specialization is aimed at ensuring the regional development of the countries that are part of the European Union and those countries that have a cooperation agreement with it. This tool involves taking into account the peculiarities and capabilities of each region and identifying competitive advantages, which helps to unlock economic potential and more effectively develop innovations at the regional level. Smart specialization aims to: (1) identify the most promising investment areas through a thorough analysis of existing opportunities, assets, competencies, and competitive advantages of the region; (2) more efficient spending of state resources by concentrating on the main industries of a certain region; (3) elimination of duplication of measures that may lead to waste of public resources; (4) implementation of mechanisms that ensure strategic development based on multilateral interaction. The purpose of the study is to determine directions for improving the strategizing of smart specialization in the regions of Ukraine from the standpoint of Schumpeterianism, institutionalism, and developmentalism. The theoretical provisions of ensuring the smart specialization of Ukraine's regional development process in practice face several problems that can be systematized and solved from the positions of different schools of economic theory at the regional and national levels. From the standpoint of the Schumpeterian school of economic theory, the priority direction for improving the smart specialization strategy of the regions of Ukraine is to combine innovation policy with regional smart specialization strategies, as well as the creation of innovative infrastructure to support smart specialization. From the standpoint of the institutional school of economic theory, the priority direction for improving the strategizing of smart specialization in the regions of Ukraine is the systematic alignment of institutions with the goals of smart specialization, the harmonization of the regulatory and legal framework for ensuring innovative activity and strategizing regional development, as well as the elimination of institutional deficiencies in the formulation of strategic documents at the state and at the regional level, which prevent the application of the principles of smart specialization. From the standpoint of the developmental school of economic theory, the priority direction for improving the strategy of smart specialization in Ukraine’s regions is improving economic policy at the national level in the area of stimulating high-tech exports.

Do Innovation Metrics Reflect Sustainable Policy Making in Europe? A Comparative Study Case on the Carpathian and Alpine Mountain Regions

This paper questions the evaluation of innovation systems and innovation measurements and the effectiveness of innovation policies applied at the territorial level by assessing whether the existing European regional scoreboard is effective in providing accurate inputs for decision-makers in mountainous regions. The aim of the research is to provide, through comparative analysis by using statistical multi-methods of two mountainous macro-regions (the Alps and the Carpathians), a possible and available path to develop novel perspectives and alternative views on innovation systems’ performance for informed and territorial-based policy making by using the indicators of the Regional Innovation Scoreboard. The methodology used includes descriptive statistics, chi-square bivariate test, Student’s t test, one-way ANOVA with Bonferroni post hoc multiple comparisons, multilinear regression analysis, and decision tree with CRT (classification and regression trees) algorithm. Our results emphasize the similarities and differences between the Alpine and Carpathian mountain regions, find the best predictors for each mountain region, and provide a scientific basis for the development of a holistic approach linking measurement theory, innovation systems, innovation policies, and their territorial approach toward sustainable development of mountain areas. The paper’s contribution is relevant in the context of remote, rural, and mountain areas, which are usually left behind in terms of innovation chances and in the context of the COVID-19 aftermath with budget constraints. The present results are pertinent for designing effective smart specialization strategies in these regions due to the difficulties that most remote areas and less developed regions are facing in developing innovation policies.