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Assessing the Economic Impacts of Transformative Activities: Embedding Entrepreneurial Ideas Into a Spatial CGE Approach in Hungary

Author

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  • Norbert Szabó
  • Krisztina Polónyi‐Andor
  • Zsolt Bedő
  • Katalin Erdős

Abstract

In this article, we provide a spatial computable general equilibrium model that is suitable for the analysis of transformative activities within the framework of Smart Specialization and able to support the selection between alternative activities. These activities play a crucial role in regional structural transformation; however, the selection mechanism between them is not evident, and the literature has provided little guidance. To improve the efficiency of the selection process, it is important to assess, among many other aspects, the expected economic impact of each entrepreneurial idea. We extended the GMR economic impact assessment model's framework to account for potential transformative activities as new industries. We integrated real entrepreneurial ideas discovered in Baranya county, Hungary, using micro‐data to evaluate their potential local economic effects and reveal the key factors behind these impacts.

Suggested Citation

  • Norbert Szabó & Krisztina Polónyi‐Andor & Zsolt Bedő & Katalin Erdős, 2026. "Assessing the Economic Impacts of Transformative Activities: Embedding Entrepreneurial Ideas Into a Spatial CGE Approach in Hungary," Journal of Regional Science, Wiley Blackwell, vol. 66(1), pages 5-21, January.
    • Handle: RePEc:bla:jregsc:v:66:y:2026:i:1:p:5-21
    DOI: 10.1111/jors.70016
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