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Designing Smart Specialization Policy: relatedness, unrelatedness, or what?

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  • Ron Boschma

Abstract

A key objective of Smart Specialization Strategies (S3) is to stimulate related diversification in European regions, rather than unrelated diversification. This chapter will outline the pros and cons of S3 with a prime focus on either related or unrelated diversification. We argue it depends on the specific regional situation which type of S3 to pursue. While there are good reasons to promote related diversification in general, regions may become over-specialized or trapped in a low-complex economy that might warrant a S3 focus on unrelated diversification.

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  • Ron Boschma, 2021. "Designing Smart Specialization Policy: relatedness, unrelatedness, or what?," Papers in Evolutionary Economic Geography (PEEG) 2128, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Sep 2021.
    • Handle: RePEc:egu:wpaper:2128
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    2. Ulrich Schetter & Dario Diodato & Eric S. M. Protzer & Frank Neffke & Ricardo Hausmann, 2024. "From Products to Capabilities: Constructing A Genotypic Product Space," Growth Lab Working Papers 230, Harvard's Growth Lab.
    3. Ron Boschma, 2021. "Global Value Chains from an Evolutionary Economic Geography perspective: a research agenda," Papers in Evolutionary Economic Geography (PEEG) 2134, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Nov 2021.
    4. Somohano-Rodríguez, Francisco M. & Madrid-Guijarro, Antonia, 2022. "Do industry 4.0 technologies improve Cantabrian manufacturing smes performance? The role played by industry competition," Technology in Society, Elsevier, vol. 70(C).
    5. Mario A. Maggioni & Emanuela Marrocu & Teodora Erika Uberti & Stefano Usai, 2023. "The role of localised, recombinant and exogenous technological change in European regions," DISEIS - Quaderni del Dipartimento di Economia internazionale, delle istituzioni e dello sviluppo dis2301, Università Cattolica del Sacro Cuore, Dipartimento di Economia internazionale, delle istituzioni e dello sviluppo (DISEIS).
    6. Christopher Meyer & Laima Gerlitz & Monika Klein, 2022. "Creativity as a Key Constituent for Smart Specialization Strategies (S3), What Is in It for Peripheral Regions? Co-creating Sustainable and Resilient Tourism with Cultural and Creative Industries," Sustainability, MDPI, vol. 14(6), pages 1-31, March.
    7. Barbero, Javier & Diukanova, Olga & Gianelle, Carlo & Salotti, Simone & Santoalha, Artur, 2024. "Technologically related diversification: One size does not fit all European regions," Research Policy, Elsevier, vol. 53(3).

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    Keywords

    Smart specialization; related diversification; unrelated diversification; regional diversification; complexity;
    All these keywords.

    JEL classification:

    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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