Smart Specialization Strategies Research Articles

Spatial Distribution of Total Factor Productivity (TFP) in the EU Regional Scope

Purpose: The aim of the paper is to analyse the differences in the level of productivity among the EU regions illustrated by the spatial distribution of total factor productivity (TFP). Since the level of productivity has an important geographical component the answer to the question, which regions are characterised with high or low level of productivity is being undoubtedly of high political importance. Design/Methodology/Approach: To calculate TFP defined as the aggregated output-input ratio, we employ the multiplicatively-complete Fare-Primont index. This index satisfies all economically-relevant axioms and tests from index number theory. The research sample consists of 256 European Union (EU) regions at NUTS 2 level. Findings: The results of the study indicate that relatively high TFP values are observed in core Western European regions, while the bottom of the TFP distribution is dominated by regions in Bulgaria, Poland and Romania. This may suggest a polarised specialization of the EU regions and limited interregional diffusion of technological knowledge. Our findings also show a high degree of dispersion in TFP within countries. Practical Implications: Identification of the spatial distribution of Total Factor Productivity (TFP) across European regions has implication for the EU regional and innovation policies. Designing policies basing on smart specialization strategies, which foster linkages to release positive knowledge externalities both within as well as between regions, constitutes the desired strategic development aim to enhance the performance of TFP. In particular, these strategies are crucial for the regions characterized by low TFP levels. Originality/Value: The methodological approach followed in this paper, in contrast to most of the existing studies on productivity differences at the regional level, satisfies all economically-relevant axioms and tests from index number theory.

PARTICIPATION OF KEY STAKEHOLDERS IN SCIENCE POLICY MAKING IN EU


 Nowadays the importance of involvement of citizens in decision-making processes is underlined in most recent research on effectiveness of public administration. Taking into consideration that development of science and research is fundamental for economic growth as well as sustainable development, the process of policy making in science should involve relevant stakeholders building effective relationships with key stakeholders. In case of EU, Ministries responsible for science have developed Smart Specialization Strategies for transformation of economies towards higher added value. For successful implementation of the strategies, Ministries have identified different initiatives towards involvement of key stakeholders in science policy making. In circumstances of low public and private funding to research and development in EU-13, the communication with science community has been challenging.
 Taking into account all mentioned before, the purpose of the study is to analyse the approaches on involvement of stakeholders in science policy making, especially in EU countries with relatively low budget for research and development.
 In order to achieve the purpose, the tasks are formulated as follows:
 1) to review the theoretical background for involvement of stakeholders in science policy making in EU;
 2) to analyse the best practice in ensuring the participation of key stakeholders in science policy making in EU, special focusing on case of Latvia;
 3) to provide the recommendations for the ministries in EU responsible for science in ensuring the participation of key stakeholders in policy making.
 Research methods used: scientific literature studies, statistical data analysis, expert survey.
 The research showed that effective involvement of key stakeholders in science policy making process is topical challenge for policy makers in EU, especially in countries with low share of budget for research and development. Successful strategy of involvement of key stakeholders in science policy includes effective communication at different levels, development of high-quality services as well as development of participatory administrative culture for civil servants.
 

Unused potential for Smart Specialization development through collaboration: Lithuanian case

Smart Specialization in this research is addressed to the use of collaboration as a tool for increasing efficiency of investment in entrepreneurship, research and innovation in a service-driven post-industrial economic system. This study provides evidence that collaboration potential is used only partly during the implementation of Smart Specialization strategy. The research illustrates given thesis by the evaluation of collaboration in Lithuanian biogas sector, which is listed among the priorities of Lithuania’s Smart Specialization strategy till 2020, using structured interviews. The main aim of this empirical research is to assess the will to collaborate in order to enhance the development of Smart Specialization and identify unused collaboration potential among all Quadruple Helix model counterparts in the biogas sector. Empirical findings show that collaboration in the Smart Specialization development has a big potential. However, this potential is used only partly because of lack of knowledge and available business infrastructure for this task and the passive role in collaboration processes of government institutions. Research findings suggest that current situation should be changed by supporting measures for business and NGOs with the aim to encourage collaborative initiatives for Smart Specialization. Research findings might serve as guidelines for policy makers, entrepreneurs, university and NGO managers.<br />

European Union funding Research Development and Innovation projects on Smart Cities.

European cities currently host 72% of the European population, which probably will rise to 80% by 2050. European Union, Member States, National and Regions Authorities and different type of stakeholders have worked - and keep on doing - together to promote a sustainable urban development and to adapt policies to the needs of cities, thus make visible improvements to the daily lives of people. According to this approach, many Member States decided to pool resources at european level, achieving more than by acting alone. It is thanks to the coordinated approach of European Union and Member State that Research Development & Innovation boost smart cities and smart specialization strategies as two novelties that have been adopted by policymakers.

Local Clusters as “Building Blocks” for Smart Specialization Strategies: A Dynamic SWOT Analysis Application in the Case of San Diego (US)

The paper aimed at exploring the role of local industrial clusters as a part of an important evidence-based pathway for operationalizing smart specialization policy. Hitherto, the scientific debate has been largely focused on the relationship of clusters with the local business environment to boost competitiveness and has mostly searched for the operationalization of smart specialization policy in economically successful regions. However, the understanding of the role of local clusters (LCs), in terms of cluster industries that serve local businesses and residents, as potential “building-blocks” of Smart Specialization Strategies (S3) still lacks interpretive studies. We proposed a conceptual framework to unveil those factors of LCs that may be enhanced in the S3 policy design, around the concepts of adaptiveness and responsiveness to structural and influencing features of a local economic system. The distinction between Local and Traded clusters, applied in the US context, allows the identification of Local Cluster performance because of the availability of a robust data set. Accordingly, a tool is proposed to investigate those factors that are likely empowering smart specialization strategies: The dynamic SWOT analysis on the case of San Diego provides interesting insights toward building this conceptual framework. The findings may help explain how to relate LCs with smart specialization as building-blocks, based on potential risks and opportunities associated with the local economic system.

Spatial forms of organizing innovative infrastructure of Ukraine in terms of sustainable development

The article is devoted to the study of spatial forms of organizing innovative infrastructure of Ukraine in terms of sustainable development. In the course of the study, modern trends of innovative development of the regions in Ukraine are highlighted. The peculiarities of implementing innovative policy in the context of smart specialization strategy are analyzed. Diagnostics of processes of formation and development of innovative infrastructure in regions of Ukraine is carried out. A conceptual approach to assessing the level of innovation infrastructure development is proposed.

Especialização inteligente e a descoberta empreendedora em Pernambuco

As estratégias de especialização inteligente (RIS3) têm-se assumido como um novo paradigma de políticas regionais de inovação na União Europeia. Suas características diferenciadoras operam numa dupla dialética entre um processo planeado top-down e na participação profunda bottom-up dos atores para definir prioridades de investimento por meio de processos de descoberta empreendedora. Este artigo parte da experiência recente de adaptação dos princípios RIS3 ao Brasil, no estado de Pernambuco. São analisados dois setores – confecções e atividades no cruzamento das tecnologias de informação com o setor automotivo (automotivo-TI) – para testar a metodologia RIS3, identificar necessidades e utilização de serviços de inovação e gerar potenciais “atividades transformadoras” para o desenvolvimento dos referidos setores. O artigo mobiliza informação de um questionário e de sessões participativas, para evidenciar semelhanças e diferenças entre ambos os setores e identificar pistas para ideias-parcerias para a promoção da dinâmica inovadora neste estado brasileiro.

Monitoring S3: Key dimensions and implications

Our work analyses the implications of a smart specialisation strategy (S3) monitoring model based on a system that considers three main axes linked to the logic of the strategies: output/results, smart specialisation process, and a learning component, on which we build our main approach. This strategic learning is based on the logic that S3 presents a new paradigm within the innovation policy scope that requires the inclusion of monitoring schemes that integrate the assessment of the dynamic process under which both public administration and other innovation stakeholders learn and improve their activities (within and without the strategy) thanks to the learning gathered throughout S3 (and its instruments and projects) implementation. The article also discusses this logic within the current and the next programming period for S3, and the role monitoring has or will have, while analysing the opportunities and challenges it presents.

Sustainable development discourse in Smart Specialization Strategies

Abstract Smart Specialization Strategies have been used to implement European Union Cohesion Policy in recent years, aiming to achieve economic, social and territorial development by reducing disparities between regions. The European Union often declares an alignment between Cohesion Policy, Smart Specialization Strategies and the United Nations Agenda 2030. However, and despite the recurrent Sustainable Development discourse present in the European political agenda, it is not evident that Smart Specialization Strategies integrate Sustainable Development goals and practices. Hence, this paper aims to explore and discuss the degree of embeddedness of the Sustainable Development discourse in the Research and Innovation Strategies for Smart Specialization, using the Portuguese Centro Region as an exploratory study. In this research a content analysis of the Centro Region Smart Specialization Strategy was used for data collection and analysis, framed by the 17 goals of Agenda 2030 and their targets. Results show a good embeddedness of the overall goals of Agenda 2030, but a lower integration of the targets, suggesting that this strategy needs to be revisited to further integrate Agenda 2030. Moreover, the Centro Smart Specialization Strategy has a strong alignment with the goals related with economic and environmental issues, almost disregarding social aspects. These findings are amplified by the fact that this strategy is mainly being implemented through projects financed under the economy pillar. Finally, there is evidence about the need of developing regional innovation policies towards sustainable development from the regional to the national level. Overall, it is critical to enlarge the debate on how Smart Specialization Strategies can be an effective engine for a new development trajectory for European regions assuming the Agenda 2030 as a framework for the necessary change.

Knowledge-Intensive Entrepreneurship and S3: Conceptualizing Strategies for Sustainability

Smart specialization strategies represent public policy initiatives to develop regions based on new combinations of knowledge and industries. The aim of this article is to enrich the theory and practice of smart specialization strategies (S3) by integrating the conceptualization of knowledge-intensive entrepreneurship (KIE). We propose that knowledge-intensive entrepreneurship is necessary in order to specify how public and private support of KIE firms can be beneficial to develop new knowledge relevant to the fulfillment of specific sustainable development goals. We did so by further developing a conceptual model of innovation governance routines by integrating sustainability goals. We also illustrated our conceptual model through two case studies from the Swedish maritime cluster. By extrapolating from the combination of the conceptual model and two case studies, we make three propositions about the different strategic roles that KIE firms can play within a broader S3 policy setting, and in such a way as to promote sustainability-related outcomes.

Green technologies and Smart Specialisation Strategies: a European patent-based analysis of the intertwining of technological relatedness and key enabling technologies

ABSTRACT This paper investigates the green diversification of regional technologies and its consistency with the Smart Specialisation logic of related diversification. It also analyses the role that key enabling technologies (KETs), as a key pillar of Smart Specialisation Strategies (RIS3), have in green branching. Working on a patent-based panel (1981–2013) of 240 European regions, it is found that the relatedness to pre-existing knowledge makes a new green-tech specialization more probable. This holds true for the relatedness to both green and non-green pre-existing knowledge, but to a greater extent for the latter. Thus, the ‘hybridization’ of non-environmental technologies seems to require lower cognitive proximity than ‘pure’ green branching. Regional KETs also facilitate the transition towards sustainable technologies and negatively moderate the green impact of the relatedness to pre-existing technologies, both green and non-green. The results confirm that Smart Specialisation policies and the support to KETs could also help regions move towards environmental sustainability.

Six critical questions about smart specialization

ABSTRACTDuring the last five years, we can observe a soaring academic interest in the concept of smart specialization. A burgeoning literature emerged both conceptually and empirically. In this paper, we pause for a while and take stock of six critiques so far identified in this emerging literature. The aim is to provide a critical lens for future research on smart specialization strategies and processes. We argue that: (1) Smart specialization is a confusing concept, as what it really means is diversification; (2) It is largely predicated on a conventional science and technology (S&T) model of innovation and regional economic development, whereas socio-ecological innovation and social innovation, have only been implicitly mentioned, at best; (3) It is the continuation of cluster policies, rather than a brand-new policy instrument; (4) It contains a delusional transformative hope, although the entrepreneurial discovery process could very likely lead to lock-ins; (5) Structurally weak regions might be less likely to benefit from smart specialization; and 6) more rigorous measurements of smart specialization are still needed. By engaging systematically with these six issues, we not only aim to improve the effects of smart specialization as a policy programme, but also to contribute to its conceptual advancement.

Smart specialization and institutional context: the role of institutional discovery, change and leapfrogging

ABSTRACTRecent years have witnessed much experimentation with smart specialization strategies (RIS3) and entrepreneurial discovery processes (EDPs) in European regions. The EDP can be seen as an opportunity to address institutional questions. Because institutional patterns can explain why some policies are eventually successful while others are not, looking at the institutional context of regional economies can increase the effectiveness of regional policy. This article argues that the EDP functions as a framework to discover institutional patterns specific to a regional economy, and to define policies either consistent with existing institutions or aiming at institutional change. The article proposes a conceptual framework to understand and analyze the two institution-related roles of the EDP, first as an institutional discovery process and second as an institutional change process. The article builds on empirical case studies in two regions (Lower Austria, Austria and South Tyrol, Italy) and two small countries (Slovenia and Croatia). The case studies focus on how these regions or countries organized the EDP that eventually led to the formulation of their RIS3, and on the institutional dynamics of the EDP in discovering and changing institutions. The article concludes with policy implications that contribute to the debate on post-2020 EU Cohesion Policy.

7. The future of place-based innovation policy (as if ‘lagging regions’ really mattered)

The place-based approach championed by the Barca Report1 is almost ten years old and its most famous expression, Smart Specialisation Strategy (S3), is being implemented in and beyond the European ...

4. Smart Specialisation in Eastern Europe: Insights from two lagging Polish Regions

Smart specialisation strategies (S3) work by prioritising regional development spending on each region’s distinct competitive advantages vis-a-vis other regions, thus enabling regions to transition...

The centrality of regions in corporate knowledge flows and the implications for Smart Specialisation Strategies

ABSTRACT This study examines the structural and geographical patterns of knowledge flows in order to investigate the centrality of regions. It exploits patent citations and combines social networks analysis and graphs theory to assess the importance of regions as places for knowledge sourcing and creation from the perspective of firms. It offers a novel applied approach to help regions position themselves in a technological space and integrate micro-economic insights into the design of strategies for Smart Specialisation. The analysis includes more than 400 worldwide regions and the patent applications of 1000 research and development-leading firms at the European Patent Office.

European approaches to the definition of smart specialization of the regions of Ukraine

In order to form approaches to determining the regions suitability for smart specialization (S3) in Ukraine that are harmonized with European requirements, 11 key European S3 principles are identified, analyzed and systematized. They are obligatory for consideration in the process of developing a S3 strategy at the regional level. They are based on an analysis of the strengths and potentialities of the economy and business activities involving stakeholders and resources. The essence of these principles and the peculiarities of their influence on the content of the smart specialization strategy, the development of which is a prerequisite for the participation of the region in the European platform of smart specialization and the use of resources of the European structural and investment funds. European approaches to smart specialization, which include a phased procedure for determining S3, is considered. Features and characteristics of the six stages of reasonable specialization are given. Their compliance is mandatory for the development of a regional smart strategy. Scientific and analytical research will help determine the suitability of Ukrainian regions for smart specialization and further develop regional strategies for reasonable specialization that meet European requirements

The Public Animateur: mission-led innovation and the “smart state” in Europe

The primary aim of this article is to reprise the debate about the role and competence of the state in innovation and development, building on the contributions of new industrial policy. It then examines the experience of one of the most ambitious mission-led innovation programmes ever launched in Europe, the Smart Specialisation Strategy (S3) programme, which has been influenced by industrial policy ideas. The article also identifies a number of challenges facing the S3 programme, particularly in the less-developed regions of the European Union, where these challenges are most pronounced.

The development of competitiveness clusters in Croatia: a survey-based analysis

ABSTRACTIn order to stimulate growth and competitiveness, many EU member states have implemented cluster-based development strategies. Several works underline the benefits of policy-driven clusters, but understanding how clusters can create value for their members is still an open issue. This work contributes to the literature by investigating 13 Competitiveness Clusters in Croatia, a special type of policy-driven clusters developed within the country’s smart specialization strategy, using original data from a survey on 250 cluster members. Our results indicate the existence of very different attitudes towards the rationale for the initiative. In particular, while some members are more interested in lobbying activities, others see networking and innovation as the most important objectives of clusters. Findings also show that the evaluation of cluster management, governance and performance varies according to the desired objectives. Overall the Competitiveness Clusters initiative in Croatia did not meet members’ expectations.

SPECJALIZACJA I JEJ ZNACZENIE DLA INNOWACJI – PERSPEKTYWA HISTORYCZNA W ODNIESIENIU DO KONCEPCJI STRATEGII INTELIGENTNEJ SPECJALIZACJI

The concept of smart specialisation strategy is a novel approach to innovation policy of European Union in the regions. Because of its novelty, amount of scientific work on the topic is relatively small. Nevertheless, particular issues relating to the concept have been formerly discussed within the fields of economics and management studies. The purpose of this article is to discuss the topic in the light of development of economic thought and to place the smart specialisation strategy concept within existing theories in the field of organisation theory and innovation management.