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An empirical test of the regional innovation paradox: can smart specialisation overcome the paradox in Central and Eastern Europe?

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  • Alessandro Muscio
  • Alasdair Reid
  • Lorena Rivera Leon

Abstract

The regional innovation paradox is the greater need of lagging regions to invest in innovation and their relatively lower capacity to absorb funding compared to more advanced regions. Using data on regional public spending, industry composition and economic performance, we test empirically whether there is a differential impact of European funding on regional economic growth between Eastern and Western European regions. We conclude that the paradox is proven and consider the extent to which smart specialisation strategies may help to improve the quality of governance of regional innovation systems.

Suggested Citation

  • Alessandro Muscio & Alasdair Reid & Lorena Rivera Leon, 2015. "An empirical test of the regional innovation paradox: can smart specialisation overcome the paradox in Central and Eastern Europe?," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 18(2), pages 153-171, April.
    • Handle: RePEc:taf:jecprf:v:18:y:2015:i:2:p:153-171
    DOI: 10.1080/17487870.2015.1013545
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    Cited by:

    1. Paul Vallance & Jiří Blažek & John Edwards & Viktor Květoň, 2018. "Smart specialisation in regions with less-developed research and innovation systems: A changing role for universities?," Environment and Planning C, , vol. 36(2), pages 219-238, March.
    2. Teemu Makkonen & Timo Mitze, 2019. "Deconstructing the Education-Innovation-Development Nexus in the EU-28 Using Panel Causality and Poolability Tests," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(2), pages 516-549, June.
    3. Artiom Volkov & Tomas Balezentis & Mangirdas Morkunas & Dalia Streimikiene, 2019. "In a Search for Equity: Do Direct Payments under the Common Agricultural Policy Induce Convergence in the European Union?," Sustainability, MDPI, vol. 11(12), pages 1-15, June.
    4. Maria José Sousa, 2022. "Digital Technologies for Urban Greening Public Policies," GEE Papers 0166, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Jun 2022.
    5. Catalá-Pérez, Daniel & Rask, Mikko & de-Miguel-Molina, María, 2020. "The Demola model as a public policy tool boosting collaboration in innovation: A comparative study between Finland and Spain," Technology in Society, Elsevier, vol. 63(C).
    6. Dominique Foray, 2016. "On the policy space of smart specialization strategies," European Planning Studies, Taylor & Francis Journals, vol. 24(8), pages 1428-1437, August.
    7. Susanna Vanhamäki & Satu Rinkinen & Kati Manskinen, 2021. "Adapting a Circular Economy in Regional Strategies of the European Union," Sustainability, MDPI, vol. 13(3), pages 1-15, February.
    8. Wonsub Eum & Jeong‐Dong Lee, 2022. "Alternative paths of diversification for developing countries," Review of Development Economics, Wiley Blackwell, vol. 26(4), pages 2336-2355, November.
    9. Daniel Catalá‐Pérez & María de‐Miguel‐Molina, 2021. "Analyzing Territorial and Sectorial Dimensions of Public–Private Partnerships in Science, Technology, and Innovation policies," Review of Policy Research, Policy Studies Organization, vol. 38(1), pages 113-138, January.
    10. Švarc, Jadranka & Dabić, Marina, 2021. "Transformative innovation policy or how to escape peripheral policy paradox in European research peripheral countries," Technology in Society, Elsevier, vol. 67(C).
    11. Agnė Paliokaitė, 2019. "An innovation policy framework for upgrading firm absorptive capacities in the context of catching-up economies," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 15(3), pages 103-130.
    12. Ricard Esparza-Masana, 2022. "Towards Smart Specialisation 2.0. Main Challenges When Updating Strategies," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(1), pages 635-655, March.
    13. Andrea Bonaccorsi & Daniele Biancardi & Mabel Sanchez Barrioluengo & Federico Biagi, 2019. "Study on Higher Education Institutions and Local Development," JRC Research Reports JRC117272, Joint Research Centre.
    14. Maria José Sousa, 2022. "Digital Technologies and Public Policies Applied to Green Cities," Land, MDPI, vol. 11(11), pages 1-18, November.
    15. Francisco J. Delgado & Matías Mayor & Maria J. Presno, 2024. "Heterogeneity of Research and Development Expenditure: A Convergence Analysis for the Spanish Regions," International Regional Science Review, , vol. 47(1), pages 67-99, January.
    16. George Papamichail & Alessandro Rosiello & David Wield, 2023. "Addressing Public Policy Implementation Challenges in Lagging Regions Through the Analytical Lens of Smart Specialisation," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(1), pages 356-381, March.
    17. Jadranka Švarc & Marina Dabić, 2019. "The Croatian path from socialism to European membership through the lens of technology transfer policies," The Journal of Technology Transfer, Springer, vol. 44(5), pages 1476-1504, October.
    18. Mustafa Cem KIRANKABEŞ & Abdullah ERKUL, 2019. "Regional knowledge production in Central and East European countries: R&D factor productivity and changes in performances," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 10, pages 25-44, June.
    19. Rocco, Salvatore, 2022. "Implementing and managing Algorithmic Decision-Making in the public sector," SocArXiv ex93w, Center for Open Science.
    20. Allan O’Connor & David Audretsch, 2023. "Regional entrepreneurial ecosystems: learning from forest ecosystems," Small Business Economics, Springer, vol. 60(3), pages 1051-1079, March.
    21. Schulz Sebastian, 2019. "Ambitious or Ambiguous? The Implications of Smart Specialisation for Core-Periphery Relations in Estonia and Slovakia," TalTech Journal of European Studies, Sciendo, vol. 9(4), pages 49-71, December.

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