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

Abstract

Recent 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.

Industrial Policy in the EU and Its Neighbourhood: Learning from Policy Experimentation

“…The EDP is supposed to lead to the design and subsequent implementation of a national-level RIS3. Similar to the case of other former Yugoslav republics and transformation economies, such as Croatia and Slovenia (Benner 2018), North Macedonia's EDP could improve institutional patterns for the design and implementation of industrial policy by establishing trust and policy credibility, and, thus, by anchoring new routines for collective, public-private self-discovery capabilities. Further, the EDP and resulting formulation of a RIS3 could further strengthen the cross-sectoral character of industrial (including innovation) policy in North Macedonia.…”

“…At the same time, cross-sectoral policymaking can improve during the process because of different ministries and agencies working together. In this regard, it seems as if the procedural side of smart specialisation reflects the basic tenets of newer industrial policies because the approach appears to support the institutional preconditions to learning, experimentation, and collective self-discovery (Benner 2018;Kroll 2015;Trippl et al 2018).…”

“…While Horizon 2020 is designed to promote excellent research and prepare its commercialisation through innovation, the smart specialisation approach is supposed to enable regional policymakers and private-sector agents to benefit from these innovative impulses by developing their context-specific strategies and using ESIF spending accordingly. The procedural impact of the smart specialisation approach in improving self-discovery and governance capabilities on the regional level (Benner 2018;Kroll 2015;Trippl et al 2018) can improve the preconditions for this complementarity to unfold. The mission orientation foreseen for the next framework programme called "Horizon Europe" (European Commission 2018b) could underscore the EU's ambition to act according to the rationale of the entrepreneurial state and, thus, if successful, strengthen dynamic opportunities for regional EDPs and RIS3 to seize.…”

“…Given the foreseeable alignment of North Macedonia's policies and legal frameworks to the EU acquis during eventual accession negotiations, EU trends in industrial policy will most likely become even more relevant for the country. Even now, during the current adoption of the smart specialisation approach in North Macedonia and the upcoming EDP leading up to the formulation of a national-level RIS3, the country is likely to benefit from experiences made by spatially close EU member states such as Slovenia and Croatia (Benner 2018). 8 Further, the country's innovation fund could be developed into a vehicle for implementing a portfolio-based, entrepreneurial industrial policy.…”

Problems of Strategic Development of Regions of Ukraine Using Smart Specialization Concept

“…Thus, M. Benner points out that the development of smart specialization strategies will increase the effectiveness of regional policy and stimulate innovative processes in business in European regions. By conducting empirical studies of institutional changes in entrepreneurial activity in the case of several regions (Lower Austria, South Tyrol (Italy), Slovenia and Croatia), the author assesses the effects of such policies and their impact on EU cohesion policy beyond 2020 [2].…”