Smart specialisation: origin and evolution

It is now a decade since the concept of smart specialisation was introduced into EU cohesion policy, first to address regional disparities and then to promote sustainable development. The original idea was to encourage EU regions to identify and build on their unique strengths and competitive advantages, rather than trying to replicate the success of other regions. To make more effective and efficient use of European Structural and Investment Funds (ESIF), regions had to choose priorities (areas of specialisation) based on their own territorial (place-based) assets to design their smart specialisation strategy (S3).

The concept has evolved since 2021: from a fully bottom-up approach based on place-based assets, it has been complemented by a political orientation with a top-down component coming from the five EU missions and the EU’s Industrial Strategy, which emphasises a rapid green and digital transition of European industry and its ecosystems (the European ‘ Green Deal’).

Regional and national policy makers still need to be supported in implementing smart specialisation and its related and sometimes obscure concepts such as the entrepreneurial discovery process (EDP), the quadruple helix, continuous stakeholder involvement and inter-regional cooperation.

Since 2014, EU regions have been experimenting with a new way of designing and implementing innovation strategies. Support to EU regions for S3 was provided by the European Commission’s Joint Research Centre (JRC) for the 2014-2020 programming period. Since 2021, the Directorate-General for Regional and Urban Policy (DG REGIO) has commissioned a consortium, of which EFIS Centre is a member, to continue this task through the S3 Community of Practice (S3 CoP) project. The project serves as a central hub for guidance, networking, support and peer learning on S3. It also aims to advance the policy development and implementation of S3 by providing practitioners with strategic services tailored to their needs and facilitating inter-regional cooperation.

The main services provided by the S3 CoP project include: the provision of on-demand expert support for the development and implementation of S3 strategies targeting European lagging regions (e.g. from Romania, Croatia, Hungary, France); the support of S3 thematic partnerships; the organisation of working groups to exchange experiences and good practices on innovation diffusion, industrial transition and interregional cooperation which are part of required conditions for ESIF funding; and the organisation of events for S3 stakeholders in Barcelona in 2023 and Rimini in 2024.

 

The Rimini conference, a forum for place-based innovation policies

Organised by the DG REGIO and the S3 CoP Secretariat, in partnership with Emilia-Romagna Region and the Municipality of Rimini, the conference brought together S3 practitioners, experts, policy-makers and other key stakeholders to network, discuss S3 policy and implementation issues and exchange information and good practices. The conference included keynote speeches, panel discussions, networking sessions and side events, providing a platform for policy makers, practitioners and experts to exchange information and best practices. The event was well received, with participants praising the discussions on place-based innovation, interregional cooperation and the role of smart specialisation in connecting regional innovation valleys. The conference provided a platform for networking, sharing best practices and exploring new opportunities for regional development. The conference focused on three main pillars:

  • The successful design and implementation of S3: Discussions focused on fostering place-based innovation, enabling sustainable and resilient economic development, and addressing challenges, capacities and policy mixes.
  • The interregional cooperation: Participants explored experiences of interregional cooperation, including challenges, opportunities and mechanisms for aligning different instruments with regional strategies and capacity building tools.
  • S3 and regional innovation valleys (RIVs): the role of smart specialisation in connecting RIVs in key thematic areas identified in the New European Innovation Agenda, such as green, digital, food, health, energy, raw materials and manufacturing.

 

A focus on innovation diffusion

Innovation diffusion is a broad concept that includes the analysis of how new ideas, practices and innovations spread throughout a society. It is essential to involve SMEs, the backbone of the EU economy, which are extremely difficult to engage and yet crucial for understanding innovation needs and dynamics across regions. Here are some key takeaways from the panel discussion moderated by EFIS Centre on the implementation of S3 and innovation diffusion in EU regions:

  • The ‘regional journey’ to reforming innovation policies and practices takes time and needs long term strategic commitment not least in optimising governance approaches to better connect innovation intermediaries and innovation services.
  • A sustained effort to generate and use data and evidence that provide a ‘reality-check’ on how the innovation ecosystem is integrating innovation diffusion measures is needed, to sustain momentum for innovation efforts and to match supply with demand.
  • Adopting a holistic overview to understanding the needs of innovation actors is resource intensive but provides long evidence of how the supply side meets with regional demand
  • A continued focus on making innovation support easy to access for SMEs is critical (innovation vouchers, living labs, etc.).
  • Highly place specific contest and approach must be adopted.

As highlighted in the closing session, the S3 concept needs to evolve continuously to meet today’s and tomorrow’s challenges. Now, more than ever, it is crucial for S3 to boost EU competitiveness by aligning EU priorities and regional strategies and fostering stronger interregional collaboration. This means paying more attention to linking ecosystems and value chains and supporting scale-ups. The work of the S3 CoP Working Group on Innovation Diffusion becomes even more relevant in this context.

Looking ahead, future S3 strategies will require enhanced skills to design improved strategies with a mix of top-down and bottom-up approaches, and to align national and regional skills policies with S3 priorities. The challenges are clear, but so are the opportunities to innovate and adapt.