Smart Specialization Strategies Research Articles

The role of leadership capabilities in Smart Specialisation Strategies: comparative case studies in two Latin American regions

ABSTRACT This paper empirically investigates the leadership implications of adopting the European Smart Specialisation Strategies (S3) in a non-European context. A multiple case study compares the Latin American regions of Medellín, Colombia, and San Luis Potosí, Mexico. A variety of data collection procedures are used, including in-depth interviews with 33 relevant actors from the triple helix that participated in the S3 design. The paper contributes to the literature by identifying the leadership capabilities that lead to effective S3 in intermediate metropolitan regions, as well as the factors that foster and hinder those leadership capabilities. This paper argues that the leadership roles for S3 include a systemic perspective among a wide range of stakeholders, but also an evolutionary perspective to manage novelty and break path dependencies. Second, it argues that the degree of centralization and institutional context affect regional leadership. Finally, four leadership capabilities are suggested based on both systemic and evolutionary perspectives.

Cooperation bias in regional policy: Is competition neglected?

Rising market power across the OECD countries raises the question how industrial policies address the role of competition, including on the regional level. Based on a multifaceted understanding of competition and cooperation between firms in the conceptual literature, this article examines the role of competition-enhancing interventions in regional innovation policies under the smart specialisation approach. Drawing on quantitative and qualitative analysis of the strategic orientation of smart specialisation strategies in 18 European regions, the article finds that regional policies apply a range of competition-enhancing interventions but still fall short of seizing the ample room for encouraging intraregional interfirm competition. While theory suggests that competition and cooperation are complements in promoting regional innovation, the limited focus of regional policies on interfirm competition might imply a bias in favour of cooperation at the expense of the productivity-enhancing role of interfirm competition. Hence, we argue that regional policies could benefit from a rebalancing by considering the use of more competition-enhancing interventions. This finding is particularly relevant for the process of smart specialisation since balancing competition and cooperation provides an additional rationale for calls in the literature to prevent rent-seeking by incumbent firms in the policymaking process.

Smart specialisation strategies: towards an outward-looking approach

ABSTRACT In recent years, regional innovation policies across Europe have relied on the smart specialisation approach to support new path development. However, its focus on endogenous knowledge flows remains a major weakness of the approach. This article argues that smart specialisation has to adopt an outward-looking approach that combines knowledge flows external and internal to the region. Based on four stylised types of regions, the article proposes generic strategies that can be pursued through smart specialisation. In terms of its policy implications, the article argues that policymakers should develop their regions’ external connectedness strategically to leverage complementarities in global knowledge flows for new path development.

Opportunities and challenges in implementing Smart Specialisation in Nordic ‘strong innovator’ regions

ABSTRACT In this paper we consider the experience of implementing the Smart Specialisation Strategy (S3) in three regions in Finland, Norway and Denmark. We highlight the challenges each of these ‘strong innovator’ regions has faced in implementing S3. We elucidate the fact that each region faced different challenges when implementing S3. We extend a discussion around place-based policy, which is designed in a regionally bespoke and bottom-up manner, suggesting that this will inherently throw up unique and variable place-based challenges, questioning how to balance this uniqueness of problems with a universally applicable approach and support infrastructure.

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.

Evaluating the implementation of Smart Specialisation policy

ABSTRACT The Smart Specialisation Strategy (S3) is at the core of the 2014–20 European Cohesion Policy, supporting regions to identify the technologies and economic sectors that might comprise sustainable growth paths. This paper provides an early attempt to assess empirically, for the whole European Union, whether the choices made by regions in selecting S3 target sectors are consistent with their current or potential specialization patterns. Results show only a few regions selected S3 paths rooted in both their current specializations and related activities, most of them prioritized different combinations of unspecialized or unrelated sectors, thus limiting the growth potential of their S3 policy choices.

Patterns of value creation in policy-driven cluster initiatives: evidence from the croatian competitiveness clusters

This paper investigates the value creation process in policy-driven cluster initiatives that are important policy tools for implementing Smart specialisation strategies. It aims at studying the evolution of the Croatian Competitiveness Clusters (CCC) to understand the role of sectoral specificities in affecting value creation within cluster initiatives. In this context, it looks at what services cluster initiatives should deliver to meet the expectations of members and generate value and what modes of cluster management and governance are the most conducive to value creation across different industries. The analysis relies on a survey of 250 CCC members. The results show that members’ preferences for support to the business activities are associated with different levels of perceived value creation. High-value CCC members are interested in innovation, infrastructure development, market analysis and training, while low-value CCC members are interested in lobbying and networking. Regardless of the sector, CCC with a higher share of private, small, and high-growth firms are more likely to generate public value by pursuing long-term activities with the emphasis on innovation, knowledge transfer, infrastructure, and market development, as compared to CCC with a high share of declining firms that see CCC as a platform for lobbying and networking and as such generate more private value, failing to achieve their ultimate goal. A high level of value is also created if members reach a consensus on the vision and activities of the CCC and work together to share knowledge, information and learning processes.

Social Innovation Governance in Smart Specialisation Policies and Strategies Heading towards Sustainability: A Pathway to RIS4?

(1) Background: Regional Innovation Strategies on Smart Specialisation (RIS3) receive higher attention due to the start of the new European funding period 2021–2027. Compared to the previous period, RIS3 will focus more attention towards social needs and challenges in their design and implementation to commit themselves towards sustainable regional development and contribute to the European Green Deal and UN Sustainable Development Goals. Nevertheless, RIS3 as innovation policy has not yet incorporated social innovation concepts or socio-ecological demands on its pathway within the constant transition of Europe’s society to become more sustainable. (2) Methods: A systematic literature review has been conducted to identify key insights and gaps in existing literature. (3) Results: The review exposed clustering as a policy tool for sustainable development, a lack of integration of social capital and regional assets to RIS3 design to overcome societal challenges and missing political capabilities to utilize social innovation governances under RIS3 towards sustainability. (4) Conclusions: Future research should pick up these gaps to contribute to a better understanding of social innovators in designing RIS3, meeting social needs and forging the pathway towards sustainability.

A Study on Factors Affecting the Economic Performance of Regional Innovation Systems in Europe

모든 국가는 지역 균형성장과 함께 4차 산업혁명 시대에도 대비해야 하는 과제를 안고 있다. OECD가 강조해온 지역정책과 산업정책을 결합한 지역기반의 혁신성장전략이 주목받는 이유다. 국내에서도 클러스터 기반의 지역혁신시스템이 여러 곳에서 태동·발전하고 있으나 개선해야 할 점들이 적지 않다. 이러한 맥락에서 EU가 추진해온 ‘스마트 전문화 전략(RIS3)’과 유럽의 지역혁신시스템은 우리에게 정책적 시사점을 줄 수 있다. 본 연구에서는 EU의 스마트 전문화 전략(RIS3)을 살펴보고 혁신성과를 조절변수로 한 위계적 조절회귀분석을 실시하여 유럽 지역혁신시스템(RIS)의 경제성과에 영향을 주는 요인을 규명하였다. 분석 결과 지역혁신시스템은 혁신성과와의 조절효과를 통해 경제성과에 유의한 영향을 주며, 여기에는 지역혁신시스템을 구성하는 4개의 요소가 모두 필요함을 확인하였다. 또한 ‘지역혁신역량’과 ‘지역 거버넌스’는 혁신성과와의 상호작용을 통해 경제성과에 유의한 영향을 미치는 반면, ‘기업 역동성’과 ‘협력 및 상호작용’은 혁신성과의 조절효과가 입증되지 않았다. 이는 유럽의 많은 낙후 지역에서 ‘기업 역동성’과 ‘협력 및 상호작용’이 아직 혁신성과와 연계되지 못하고 있음을 뜻한다. 기업 역동성과 협력 및 상호작용이 혁신성과와 어우러져 지역경제 활성화에 기여하려면 개방적이고 역동적인 혁신생태계가 필요하다. 본 연구의 시사점은 첫째, 정책의 우선순위를 지역혁신역량의 강화에 두어야 하고, 둘째, 경제주체들이 참여하는 효율적인 거버넌스를 구축해야 하며, 셋째, 기업 역동성과 협력 및 상호작용이 혁신성과와 연계되도록 역동적인 혁신생태계 조성에 꾸준히 노력해야 한다. 넷째, 지역혁신시스템의 고도화 및 역동적인 혁신생태계의 구축은 하루아침에 이루어지지 않는다. EU와 회원국들이 오래 전부터 민간 주도의 개방화된 스마트 전문화 전략을 지속적으로 추진해온 이유도 바로 여기에 있다.All countries have the task of preparing for the 4th industrial revolution along with regional balanced growth. This is why the regional-based innovative growth strategy that combines regional and industrial policies that the OECD has emphasized is drawing attention. In Korea, cluster-based regional innovation systems are growing in various places, but there are many points that need to be improved. In this context, the ‘smart specialization strategy (RIS3)’ promoted by the EU and the regional innovation system in Europe can give us many policy implications. In this study, EU s smart specialization strategy (RIS3) was examined and the factors affecting the economic performance of 280 European regional innovation systems were identified by using hierarchical adjustment regression analysis with innovation performance as a moderating variable. As a result of the analysis, it was confirmed that the regional innovation system (RIS) had a significant effect on economic performance through the moderating effect (interaction effect) with the innovation performance. This study also confirmed that the economic performance of the regional innovation system is improved when the innovation performance is high, and that four elements(‘Regional innovation capacity’, ‘regional governance’, ‘business dynamism’, ‘cooperation and interaction’) constituting the regional innovation system are necessary to improve the economic performance. In addition, it was confirmed that regional innovation capacity and regional governance brought a significant difference to the economic performance of the regional innovation system through the interaction with the innovation performance. On the other hand, the direct effects of corporate dynamism and cooperation and interaction on economic performance were confirmed, but the moderating effect of innovation performance was not confirmed. This means that many underdeveloped regions in Europe have not yet been able to link corporate dynamism, cooperation and interactions with innovation activities. In order for corporate dynamism and cooperation and interaction to contribute to vitalization of the local economy, an open and dynamic innovation ecosystem must be created. The policy implications of this study are: First, the priority of policy should be placed on strengthening regional innovation capabilities. Second, in order for the regional innovation system to be successful, efficient regional governance in which all economic actors participate should be established. Third, continuous efforts should be made to create an open innovation ecosystem so that corporate dynamism, cooperation and interaction can be linked with innovation performance. Fourth, the advancement of regional innovation systems and the establishment of a dynamic innovation ecosystem cannot be achieved overnight. This is the reason why the EU and its member states have been continuously pursuing private-led open smart specialization strategies for a long time.

Foresight for science and technology parks in the context of smart specialisation

ABSTRACT In recent decades, science and technology parks (STPs) have acquired significant academic and political interest due to their potential to develop regional innovation capacities. Despite their popularity, the impact of STPs has been discussed critically in the literature. One reason behind their unclear impact relates to a lack of alignment between the strategies of STPs and their respective regional contexts. This article contributes to this discussion by demonstrating that the concepts of smart specialisation strategies (S3) and innovation system foresight can help design STP’s innovation strategies that are in alignment with the regional context. This study develops and implements a foresight exercise design to align the function of the STP with the regional context of the Prince of Songkla University Science Park in Thailand. The foresight exercise contributes to policy recommendations for the regional authorities and the STP’s management, focusing on three pillars: collaboration and networks, vertical policy coordination, and the prioritisation of specific technology fields related to the existing industry. Theoretically, the article contributes a new approach to S3 initiation in which STPs play a crucial role.

Creativity as a Key Constituent for Smart Specialization Strategies (S3), What Is in It for Peripheral Regions? Co-creating Sustainable and Resilient Tourism with Cultural and Creative Industries

Sustainable tourism is one of the key sectors in the South Baltic Sea Region (SBSR), which belongs to the role model for sustainability—the Baltic Sea Region (BSR). In this context, resilience, recovery and sustainability become key common threads calling for new approaches mitigating negative impacts, upscaling resilience capacity and boosting recovery in the post-pandemic era. The present work aims at revealing conceptual and practical pathways for policy makers and businesses in revitalizing sustainable tourism in the region by emphasizing cultural and creative industries (CCIs) as strong contributors to sustainable development and economic ecosystems, such as tourism. Tourism is also one of the key thematic areas of the smart specialization strategies (S3) in the SBSR. However, there is almost no link between CCIs’ potential for sustainable and resilient tourism and their contribution to the co-design and co-creation of S3. CCIs are rather absent agents in quadruple helix networks supporting S3 policy implementation. The literature on this topic is still premature, and represents a clear gap in knowledge. By virtue of these circumstances, the present research investigates how CCIs contribute and reveal new linkages between local assets, potential markets and societal challenges by engaging them as proven sustainable innovation and transition brokers in transnational quadruple helix partnerships following S3 policies in accordance with the sustainable development goals (SDGs), thus supporting sustainable and resilient tourism. Moreover, this paper aims at advocating for development of rural and peripheral regions, thus reducing the so-called “rural marginalization”. In addition, this paper also supports ongoing recent discussions on related vs. unrelated diversification policy within the S3 realm.

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.

Contribution of the Horizon2020 Program to the Research and Innovation Strategies for Smart Specialization in Coal Regions in Transition: The Spanish Case

This work aims to assess how regional innovation systems support research and innovation smart specialization strategies (RIS3) in coal intensive regions. Although many authors have analyzed energy transition paths for the European coal regions, no study has assessed how the network properties of their innovation systems are aligned with the priorities identified in their RIS3. This work fills this gap, relying on social network analysis (SNA) to assess innovation systems’ underlying networks, considering the active role of their nodes, thus, contributing to the innovation systems literature in the areas of modelling, simulation and performance evaluation. Within this work, regional innovation systems are modelled as research networks. These networks are promoted by the consortia funded by the European H2020 program. The assessment of the topology and properties of these networks enables the evaluation of the functioning of the innovation system, its technological strengths, as well as the key players involved. Based on these results, the characteristics of the innovation systems are compared to the priorities established by the RIS3. Three Spanish coal intensive regions (Aragón, Asturias and Castilla y León) are considered as use cases in this study. The obtained results indicate that, in some cases, the technological strengths of the regional innovation systems are not considered in the identification of the RIS3 priorities, while some RIS3 priorities are not supported by the innovation system. Considering these results, this paper proposes recommendations for regional and European policymakers, as well as for participants in the European research programs.

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.

Information Activity of a Large European Project in Social Media

Purpose: The aim of the article is to present the information activity of a large European project based on information policy in social media. Social media are an excellent means of reaching a wide audience, while activity in this sphere reflects the degree of organisation of project partners and their involvement in achieving the project`s objectives. Design/methodology/approach: The present paper makes use of the experience gained while promoting the results of the GoSmart BSR project via social media. The GoSmart BSR project is concerned with enhancing the low capacity for innovation in less developed Baltic Sea Regions (BSR) through mutual learning, translating smart specialisation strategies (S3) into practical joint activities of small and medium enterprises (SMEs), and applying best practices used in better developed regions. The project is fully integrated with 3S and aims at promoting efficient co-operation between the industrial sector, the R&D sector, and the authorities, following a transnational approach. Findings: Social media play a significant role in the three phases of the project life, i.e. disseminating knowledge (raising awareness), collecting and verifying information that has been acquired during the project, and storing and disseminating the knowledge acquired during the project. Originality/value: research on Social Media profiles is predominantly descriptive and focused on the organizational perspective all projects R&D. This research paper contributes to both theory and practice by studying the causal impact of these guidelines on research teams.

ІТ-кластери як інструмент забезпечення смарт-спеціалізації регіонів України

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).

Роль промисловості у забезпеченні сталого розвитку: досвід смартпріоритизації країн Центральної та Східної Європи

The article is devoted to the analysis and generalisation of the European practice of smart prioritisation with an emphasis on the role of the industrial sector in the implementation of innovative solutions to ensure sustainable development. The object of the study is the reference countries of Central and Eastern Europe. It was found that the CEE countries are at different stages of the path to sustainable development and demonstrate different degrees of concentration of national smart specialisation strategies on sustainable innovations. Croatia, Poland and the Czech Republic show the greatest interest in the implementation of smart priorities for sustainable development. Sustainable energy and renewables, resource efficiency, sustainable production and consumption prevail among the subject areas of sustainable innovation. In the sectoral aspect, the leading role in the implementation of smart innovative solutions to ensure sustainable development is assigned to manufacturing. In the developed smart specialisation strategies, most of the CEE countries focus on the manufacture of food products. This indicates the choice of smart priorities based on traditional specialisations. The prospects for the development of this sector are related to the bioeconomy, which also involves the resources of the wood industry and accumulated technological knowledge in chemical production and machine building. We have revealed two approaches in the practice of smart prioritisation: (1) concentrated prioritisation, which involves focusing on a certain innovative direction and is based on a limited number of types of economic activity with an understanding of their future interaction; (2) broad prioritisation, which is characteristic of territories with weak innovation ecosystems and involves unclear cross-sectoral interactions and coverage of a significant number of innovation directions, which are planned to be clarified in the course of further collaboration between key stakeholders. The results of the study make it possible to improve approaches to the development of smart specialisation strategies for the recovery and sustainable development of Ukrainian territories in the post-war period and to build a mutually beneficial cross-border/interregional partnership between Ukraine and the CEE countries in the selected smart priorities.

The role of MNEs in regional smart specialisation strategies: evidence from San Luis Potosi, Mexico

Smart specialisation strategies have been adopted in Mexico to guide innovation policy towards strategic domains in particular regions. In San Luis Potosi, the presence of multinational enterprises (MNEs) in the automotive sector has fostered growth and shaped regional strategy. The sector is considered one of the three state priorities as an outcome of smart specialisation strategies. The article follows a case-study methodology based on secondary data as well as 16 interviews and 40 responses to a perception survey to shed light on the role of MNEs in regional innovation. The findings show that the presence of MNEs in the region has had productivity impacts but limited innovation impacts. A framework is suggested to guide policy action according to the MNE as well as regional characteristics. Moreover, the findings reveal the importance of facilitating related entrepreneurship.

Особливості відновлення старопромислових територій в контексті Глобальних цілей та реалізації стратегій смарт-спеціалізації

Challenges associated with military activities and subsequent post-war reconstruction, external and internal factors of the functioning of domestic industries require scientifically grounded conceptual provisions for the revitalization of old industrial areas based on new principles of strategic planning and in the context of the Global Goals of Sustainable Development. The purpose of the article is to summarize modern views on the rethinking of approaches to the development of old industrial areas in the European Union and to determine directions for the restoration of old industrial areas of Ukraine in the context of the Global Goals and the implementation of smart specialization strategies in the conditions of post-war recovery. In the European Union, new views are based on a critical evaluation of the smart specialization policy, which relies mainly on the traditional scientific and technical model of innovation, and focuses on an implicit social-ecological model, which provides for the involvement of the potential of science, technology and innovation to meet the needs of society through achieving the goals of the United Nations in the sphere of sustainable development. A comprehensive approach to rethinking the development of regions on the basis of socio-ecological innovations is provided by the conception of fundamental economics. It is based not on sectors of the knowledge economy, but on areas that provide the population with basic social goods and services that form the basis of everyday civilized life. The post-war recovery of communities in Ukraine will be focused, first of all, on achieving social well-being, which should become the main goal of innovative policy. Therefore, it is necessary to ensure a balance between the strategic planning of the development of regions based on the principles of smart specialization, grounded on technological innovations, and the fundamental economy, which is based on an implicit socio-ecological model of innovation. Approaches to achieving such a balance and establishing priority values for development will be different, taking into account different types of regions of Ukraine (temporarily occupied, front-line and rear). This should be taken into account when developing regional development strategies for 2024-2027.