Smart Specialization Strategies for Sustainable Regional Development

The smart specialization strategy (S3) is a place-based approach to regional development, which rapidly became highly demanded across regions regardless of its novelty. In essence, S3 aims to support regions to transform their economic structures in favor of knowledge-based development. Practical implementation includes setting a limited number of priorities within development strategies and involving a wide range of stakeholders. The S3 approach differs from conventional innovation policies because it focuses on the process of “self-discovery” and targets a limited number of activities that have the potential to serve as a regional competitive advantage. Today, the approach continues to evolve. The updated vision of regional development accentuates sustainability at the core of regional growth. To achieve better outcomes, regions need to localize the Sustainable Development Goals (SDGs) and discover opportunities based on their own capacity, potential, and vision. Smart specialization strategy for sustainability (S4) aims to embed sustainability into economic activities, aligning them with local characteristics and challenges. The key objective of this transformation-oriented regional development policy is to help regions become places with high business activity and an attractive environment in which to work, live, and invest. A special contribution of S3 and S4 is their support in discovering regional potential, even in declining regions. This can significantly contribute to closing productivity and income gaps.