The theoretical underpinnings of smart specialisation

George Papamichail

Chapter 3 in Unlocking Smart Specialisation, 2026, pp 33-50 from Edward Elgar Publishing

Abstract: Chapter 3 outlines the theoretical architecture underpinning Smart Specialisation Strategies (S3), positioning them as a theory-driven, place-based framework synthesising insights from economics, economic geography and innovation studies. It traces S3's lineage from neoclassical concepts of comparative advantage to endogenous growth models that emphasise knowledge, human capital and R&D, establishing the rationale for targeted investments and spillover effects. Drawing on evolutionary economic geography, the chapter examines path dependence, related variety and regional branching to explain diversification while avoiding lock-in. Institutional economics and multi-level governance highlight how formal rules, complementarities and cross-scale co-ordination shape design and implementation. Regional Innovation Systems ground S3 in interactive learning, networked actors and embedded institutions, emphasising capacity building for opportunity recognition and entrepreneurial discovery. The Entrepreneurial Discovery Process (EDP) is theorised through information economics and collective intelligence, clarifying why participatory, iterative search aligns public–private incentives. Addressing critiques, the chapter consolidates a multidimensional platform connecting diagnosis, prioritisation, governance and evaluation.

Keywords: Endogenous growth theory; Entrepreneurial discovery process; Multi-level governance; Related variety; Regional innovation systems; Smart specialisation (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035346370
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