Implementing a smart specialisation strategy: an evidence-based approach
| Published date | 01 March 2017 |
| DOI | 10.1177/0020852315574994 |
| Date | 01 March 2017 |
| Author | Tea Petrin,Patricia Kotnik |
| Subject Matter | Articles |
International Review of
Administrative Sciences
2017, Vol. 83(1) 85–105
!The Author(s) 2015
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DOI: 10.1177/0020852315574994
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International
Review of
Administrative
Sciences
Article
Implementing a smart
specialisation strategy: an
evidence-based approach
Patricia Kotnik
University of Ljubljana, Slovenia
Tea Petrin
University of Ljubljana, Slovenia
Abstract
Smart specialisation is now a major idea behind the European Commission’s cohesion
policy reforms in the field of innovation, and it must be applied by European Union
member countries in order to secure funding under the 2014–2020 European Union
budget, even though the concept itself has only recently emerged. The success of
translating this policy into practice depends on a thorough analysis of regions’ and
countries’ potential for innovation based on empirical evidence. Currently, countries
use a wide array of methods to define priority areas, but these have, for the most part,
failed to address the challenges of this process. This article explores the data that can be
used in the prioritisation process of developing a smart specialisation strategy. The
approach follows the main recommendations for profiling regions and countries, uses
data already available at the national statistical offices, and is based on indicators that can
be grasped intuitively by policymakers. It includes data on each relevant aspect of smart
specialisation, that is, economic, scientific and technological specialisation, as well as the
entrepreneurial discovery process. This article demonstrates the approach using a case
with Slovenian data; the results suggest that it can be an effective tool for narrowing
down a list of industries to be considered for a smart specialisation strategy.
Points for practitioners
A smart specialisation strategy will be a precondition for using European Union regional
and investment funds during 2014–2020 in order to support research and innovation
investments. The success of translating this policy into practice depends on a thorough
analysis of regions’ and countries’ potential for innovation based on empirical evidence.
A ready-to-use methodology for narrowing down a list of industries to be considered
for a smart specialisation strategy is proposed, and is demonstrated using the example
of Slovenia.
Corresponding author:
Patricia Kotnik, Faculty of Economics, University of Ljubjana, Kardeljeva ploscad 17, Ljubljana 1000, Slovenia.
Email: patricia.kotnik@ef.uni-lj.si
Keywords
European Union, industrial policy, innovation policy, operationalisation, priority areas,
profiling, regional policy, smart specialisation
Introduction
The issue of industrial policy is becoming increasingly relevant for European Union
(EU) member countries. Competition from emerging economies is growing and
new sources of growth and employment are being sought in the aftermath of the
economic crisis. Governments are interested in actions that could accelerate struc-
tural changes in their economies and support industrial competitiveness. Industrial
policy thinking first moved from the neoclassical, market-failure correction
approach into a phase where the role of government was recognised in promoting
the development of capabilities, and then, most recently, evolved into the so-called
‘systems approach’ or ‘New Industrial Policy’, focusing on knowledge and actions
that help build systems, create networks and develop institutions (Warwick, 2013).
Governments are also increasingly interested in how to establish priorities when
deciding on actions to be pursued, especially in the current times of restricted
budgets. Prevailing policy priorities are mainly horizontal in nature, aiming at
providing framework conditions that are favourable to industrial competitiveness,
but they also acknowledge that specific needs and characteristics of individual
sectors need to be taken into account (European Commision (EC), 2002). These
sector-specific elements of industrial policy are being strengthened. In 2010, the
European Commission (EC) initiated an approach to industrial policy that com-
bines horizontal framework policies with sector-specific initiatives (EC, 2010). Even
more recently, the EC put forward the concept of a smart specialisation policy that
builds on prioritisation, focuses on building knowledge and aims at accelerating
structural change. This has provoked major interest even beyond EU borders, with
similar strategies being applied in regions and states as varied as Australia,
Michigan and California in the US, as well as Korea and Singapore (OECD,
2013: 14).
The smart specialisation concept was suggested by the Knowledge for Growth
(K4G) expert group as a conceptual framework for issues of policy prioritisation
logic in innovation policy. In the words of its authors, the simple idea behind it is
that: ‘i) Regions cannot do everything in science, technology and innovation, and
ii) they need to promote what should make their knowledge base unique and
superior’ (Best, 1990: 3–4). Smart specialisation therefore implies that countries
and regions should focus on and specialise in relevant sectors or activities, depend-
ing on their capabilities. Smart specialisation policy is now a major idea behind the
new Innovation Union flagship programme of the EC
1
and EC cohesion policy
reforms in the field of innovation. It will be a precondition for using EU regional
and investment funds during 2014–2020 in order to support research and innov-
ation investments.
2
Given its importance, policymakers should aim to set up smart
86 International Review of Administrative Sciences 83(1)
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